Distribution Engine

The Executor of Sovereign Will

Core Function

The Distribution Engine is the autonomous smart contract that executes the capital allocation decisions of the 3 ecosystem. It transforms governance into on-chain action, directing the flow of surplus value to ensure the protocol's long-term growth and sustainability.

How It Works: From Signal to Action

The engine's operation is a direct reflection of the protocol's sovereign governance.

1. Revenue Intake: The engine receives ETH from the protocol's consolidated surplus revenue.

2. Governance-Driven Allocation: The flow of ETH is continuously directed to Purpose-Oriented Distributors (PODs) based on live governance signals. These signals are determined by the persistent staking of governance weight (VW3) into each POD.

A key feature of this system is the automatic alignment with creditors. Any VW3 that has been minted but not yet claimed by 3Fi governors is automatically counted by the Distribution Engine to boost the weight of the Creditors POD. This ensures that when governance participation is low, the protocol's surplus reliably flows to its long-term capital providers.

1. Automated Execution: The Distribution Engine automatically distributes incoming ETH according to these staked allocations, funding development, growth, liquidity, and reserves without requiring repeated voting.

Outcome & Future: An Evolving, Self-Funding Ecosystem

This creates a system where capital automatically follows long-term strategy, ensuring the ecosystem's resources are deployed by its most committed members.

Looking ahead, this framework is designed for expansion. The vision is to open POD creation to the community, allowing anyone to propose and bootstrap new initiatives that can be funded directly by the Distribution Engine, turning the protocol into a self-funding engine for decentralised innovation.

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