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How the DAO may distribute up to 40% of realized value to active xDEUS holders through multiplier-weighted governance rewards. The DAO may generate value through: • RCM Protocol fees • Realized gains from equity positions Equity positions include both external robotics investments and DAO-incubated ventures. All allocation of value is determined exclusively through DAO governance. There is no automatic distribution mechanism.

Distribution Framework

When value is realized and received by the DAO treasury, governance may allocate up to 40% of the amount received toward multiplier-weighted distribution to active xDEUS holders. The remaining portion may be: • Retained in treasury • Reinvested into new allocations • Deployed into strategic ecosystem development • Used for DEUS buybacks The specific percentage, structure, and timing of allocation are defined in each approved governance proposal. Governance retains full discretion to allocate less than the maximum or to retain all proceeds within the treasury.

Capital distributions are executed via on-chain smart contracts integrated with governance voting power. Distribution weighting reflects multiplier-adjusted xDEUS balances. The current implementation utilizes the Aragon OSx Capital Distributor.

Example: Protocol Revenue (Illustrative)

Assume the protocol generates $1,000,000 in revenue over a one-month period. If $700,000 is received by the DAO treasury during that period, that amount falls under governance control. Governance may elect to allocate up to 40% of the amount received by the DAO treasury: • Up to $280,000 may be distributed pro-rata to active xDEUS holders • Distribution is calculated using multiplier-weighted balances • Snapshot timing is defined in the approved proposal The remaining portion remains under treasury control. This example is illustrative. Revenue generation does not imply automatic or periodic distribution.

Example: Equity Liquidity Event (Illustrative)

Assume the DAO receives $5,000,000 into its treasury following the sale of an equity position. That amount falls under governance control. Governance may elect to allocate up to 40% of the amount received: • Up to $2,000,000 may be distributed pro-rata to active xDEUS holders • Distribution is calculated using multiplier-weighted balances • Snapshot timing is defined in the approved proposal The remaining portion may be retained for reinvestment or future strategic deployment. This example is illustrative. A liquidity event does not imply automatic distribution.

Multiplier-Weighted Distribution

Where governance approves distribution: • Allocation is calculated pro-rata based on multiplier-weighted governance balance • Only active staking positions participate • Snapshot timing is defined in the proposal The same multiplier that governs voting power also determines reward weight.

Incentive Programs

Separately, governance may approve time-bound incentive programs, including staking campaigns or governance transition incentives. Such programs: • Operate under defined allocation limits • Have specified duration • Do not create ongoing entitlement Campaign parameters are defined in the relevant governance proposal.

No Automatic Entitlement

Participation in governance does not constitute entitlement to profits, dividends, or financial returns. All rewards are discretionary and subject to governance approval.