> For the complete documentation index, see [llms.txt](https://rh-project.gitbook.io/red-horse-rh/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rh-project.gitbook.io/red-horse-rh/rh-token/3.3-emission-and-treasury.md).

# 3.3 Emission & Treasury

This section explains how RH tokens are released into circulation through program budgets (“emissions”) and how treasury-controlled allocations are managed. Emissions and treasury operations are designed to be **policy-driven, transparent, and auditable**, with clear limits and reporting expectations.

### Emission Model (Rewards Release)

In RH, “emission” refers to the scheduled release of RH from designated allocations—primarily the **Rewards Program** allocation—into active circulation through rewards distributions and campaigns.

Emissions are governed by three core principles:

* **Budgeted:** Releases occur under explicit budgets (per epoch or per campaign).
* **Time-distributed:** Releases are spread over time rather than concentrated in short windows.
* **Traceable:** Distributions can be verified on-chain through published addresses and transaction records.

#### Epoch Budgets

The rewards program operates on epochs (e.g., weekly or monthly). For each epoch, the protocol publishes:

* The **epoch budget** (maximum RH to be distributed)
* Eligibility and weighting parameters used for calculation
* The distribution method (claim-based or push-based)
* Any program-specific caps or rules

Budgets should be versioned and updated only through the defined governance and operational controls.

#### Campaign Budgets

In addition to epoch rewards, RH may run time-bound campaigns (community, ecosystem, or P2E-style seasonal initiatives). Each campaign must disclose:

* Total campaign budget and duration
* Scoring and eligibility criteria (including anti-bot/anti-sybil measures where applicable)
* Payout method and schedule
* Unclaimed rewards policy

Campaign budgets are designed to remain bounded and reviewable to reduce runaway emissions.

### Treasury Structure

RH uses treasury-controlled allocations to fund ecosystem development, operations, partnerships, and risk reserves. Treasury operations should be conducted through:

* Clearly identified **treasury wallets** (publicly disclosed)
* Written budget policies and approval processes
* Strong operational controls (e.g., multisig)

Treasury funds are not intended to guarantee price outcomes. Their purpose is to finance ecosystem execution under transparent governance and risk controls.

### Treasury Policy (Baseline)

A baseline treasury policy may include:

* **Budget planning:** Treasury spending is planned in monthly or quarterly budgets.
* **Use-of-funds categories:** Operations, partnerships, security, ecosystem programs, and reserves.
* **Approval thresholds:** Spending limits based on amount and category, requiring appropriate approvals.
* **Public reporting:** Regular summaries of treasury inflows/outflows and remaining balances.

Where possible, treasury policies should favor predictable spending over discretionary, ad hoc decisions.

### Transparency & Reporting

To support auditability, RH aims to publish:

* Treasury and rewards pool wallet addresses
* Budget schedules (epoch and campaign)
* Distribution records (tx hashes, payout contracts, or payout addresses)
* Periodic reports (monthly or quarterly) covering:
  * Total RH distributed
  * Remaining rewards budgets
  * Treasury spending by category
  * Notable parameter changes and rationale

### Guardrails

To reduce operational and governance risk, RH applies guardrails such as:

* **Separation of wallets:** Distinct addresses for treasury, rewards pool, liquidity operations, and operational expenses.
* **Bounded budgets:** Emissions and spend are capped per epoch/campaign and per budget cycle.
* **Change control:** Material changes to budgets, wallet structures, or distribution rules must follow governance and documented operational controls.
* **Emergency response:** In exceptional circumstances (e.g., security incidents), emergency procedures may temporarily alter operations, with retrospective disclosure.

This structure ensures RH emissions and treasury actions remain disciplined: releases are planned, spending is controlled, and the community can verify activity on-chain.