Summary

To enhance market adjustment flexibility while safeguarding the long-term security of the Treasury, this proposal introduces a combined mechanism of Treasury Allocation × MBR Replenishment:

Prioritize the allocation of $5M from the Treasury into MBR (Market Balance Reserve), and simultaneously launch a dedicated MBR-to-Treasury replenishment program, so that Treasury funds deliver immediate market adjustment value while being gradually replenished back to their original level through MBR's steady income.

Purpose

• Greater Flexibility: Allocating Treasury funds into MBR provides stronger market adjustment capability than RBS;
• Long-Term Treasury Security: Dedicated MBR replenishment ensures the Treasury is not depleted by activation;
• Closed-Loop Structure: Treasury → MBR → Market Adjustment → Treasury Replenishment, forming a self-sustaining cycle.

Implementation Details

1. Priority Allocation of Treasury Funds into MBR

Allocate $5M from the Treasury into MBR (rather than RBS) to support dynamic market adjustment.

1. MBR-to-Treasury Replenishment

Launch a dedicated MBR-to-Treasury replenishment program: over the coming months, MBR will prioritize allocating its ETH burn income back into the Treasury, until the full $5M is restored.

📌 Core Principle: Treasury funds are activated, not consumed — allocate first, replenish after — forming a dynamic yet secure closed loop.

📌 Note on the MBR Ceiling

This Treasury allocation is a special adjustment arrangement. Approximately 400,000 ARK will be retained within MBR as a liquidity reserve, ensuring MBR has sufficient operational space for two-way market adjustment.

This arrangement does not change the $5M total ceiling principle of MBR, and serves only as a structural complement to the current Treasury activation.

Execution Schedule

• Upon proposal approval, the $5M allocation into MBR will be executed via the Treasury multi-sig process;
• The MBR-to-Treasury replenishment program will launch simultaneously and be fulfilled through ongoing ETH burn income;
• All allocation and replenishment operations will be executed on-chain with full transparency;
• Treasury and MBR fund flows will be reported to the community on a regular basis.