# DAO Treasury Fund

The DAO pool is a dedicated fund where `5%` of the total block reward each block is set aside for project budgeting. The purpose of this treasury is to cover mandatory and discretionary spending that is for the good of the project, as determined by community sentiment through a +⅔ agreement of Validator representation.

{% columns %}
{% column %}
**Examples of expenses that the DAO may allocate funds toward include:**

***

* Centralized Exchange listings
* Launch Pad partnerships
* Long-term development contracts
* Sensible marketing campaigns
* Canopy education
  {% endcolumn %}

{% column %}
**Examples of expenses that the DAO may reject:**

***

* Upfront funding&#x20;
* A self-manufactured campaign for anything
* Overpriced/low impact
* Duplicate development
* Lifestyle perks like lavish events and travel
  {% endcolumn %}
  {% endcolumns %}

{% hint style="info" %}
Want to know more about the process? Checkout [State Machine](/docs/canopy-network/how-does-canopy-work/state-machine.md#governance). More questions? Head to Canopy's Discord and ask!
{% endhint %}


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