TIP 43：Community Treasury Asset Allocation and Strategic Deployment Plan

Background

Under TIP 42, Tokenlon systematically deposits protocol-captured fees into the Community Treasury, building a sustainably growing pool of community-controlled assets.

Building on TIP 42, this proposal further:

1. Formally consolidates three multi-sig wallets under the unified "Tokenlon Community Treasury";
2. Provides a comprehensive overview of current treasury token holdings and asset distribution;
3. Proposes an initial asset allocation framework for the Community Treasury, including a long-term BTC/ETH accumulation strategy,and an allocation of operating liquidity for the Tokenlon V7 Solver.

Motivation

• Bring historical and future fee-collection wallets under unified "Community Treasury" management;
• Establish a clear, reusable asset allocation framework on the current treasury base of approximately $24.96M;
• Dispose of alternative and non-core assets, gradually converting a portion of treasury exposure into long-term BTC/ETH strategic positions;
• Create headroom for future on-chain strategies (treasury allocation, investment, buybacks, solver liquidity, community incentives, etc.);
• Reserve sufficient Solver launch liquidity for the Tokenlon V7 protocol upgrade, ensuring adequate market depth and user experience at launch.

Community Treasury Wallets and Asset Overview

Three Multi-Sig Wallets

Note: Valuations are based on on-chain prices as of April 7, 2026, for governance reference only. Actual amounts will reflect on-chain prices at the time of execution.

Combined Total Value: $24,968,366 (approx. $24.96M)

Top 10 Combined Assets

Asset Structure: Stablecoins (USDT/USDC/DAI, etc.) account for the vast majority of treasury value. LON, the protocol's core asset, represents 13.3%. WETH holdings are moderate. WBTC accounts for only 0.5%. On Arbitrum, LON and ARB form a Layer 2 satellite position.

Community Treasury Use Cases

Once fee revenue flows into the Community Treasury, it may be used for purposes including but not limited to:

1. Treasury Rebalancing — Rolling adjustments across chains and assets to increase the share of BTC/ETH as foundational safe assets;
2. Investment and Asset Management — Participation in low-to-medium risk DeFi strategies to generate additional yield and hedge downside risk;
3. Open Market Buybacks — Periodic LON buybacks for governance, community incentives, and liquidity enhancement;
4. Community Incentives and Ecosystem Development — Incentives for market makers, integrators, ecosystem partners, and community contributors;
5. V7 Solver Liquidity Supply — Allocation of stablecoins as operating liquidity for the Tokenlon V7 Solver, ensuring adequate market-making depth and trading experience during the protocol upgrade launch;
6. Other On-Chain Strategies — Protocol security (insurance pool), new chain expansion seed funding, etc. Each must be separately scoped or disclosed transparently through quarterly updates prior to execution.

Proposal

I. Confirm Community Treasury Scope

1. Formally designate the above three multi-sig wallets as the "Tokenlon Community Treasury," with 0x0073… upgraded from "fee aggregation wallet" to "Community Treasury Multi-Sig #2";
2. Require the core team to publish a consolidated Community Treasury asset snapshot (covering all three addresses) at least once per quarter.

II. Initial Asset Allocation and BTC/ETH Strategic Accumulation

2.1 Small-cap Asset Disposal

Consolidate and dispose of assets across the three multi-sigs where a single asset's value has remained below 0.1% of total treasury value over time, or where market cap/liquidity is clearly insufficient. This includes PEPE, small-cap DeFi tokens, legacy mining rewards, and similar assets. Total small-cap assets: approximately $1.545M.

2.2 Dynamic BTC/ETH Asset Allocation

1. Use proceeds from small-cap asset disposal, plus 10–20% extracted from total stablecoin holdings, to build a strategic BTC/ETH position. The specific ratio will be determined flexibly by the operations team based on market conditions and disclosed to the community post-execution;
2. Execution principles: purchase in tranches to avoid single-point operations; establish rebalancing rules; disclose publicly to the community each quarter.

2.3 Allocate 20% of Treasury Stablecoin Assets for Tokenlon V7 Solver Initial Liquidity

1. Allocate an additional 20% (approximately $5M USD) of total stablecoin holdings as operating liquidity for the Tokenlon V7 Solver, to support liquidity supply during the protocol upgrade launch phase;
2. Funds will be managed by the core team via multi-sig, used exclusively for Solver market-making and liquidity deployment, with regular community disclosures of fund usage and returns.

2.4 Target Asset Allocation

Expected Outcomes

1. Governance: A clear "Community Treasury boundary" that logically extends TIP 42, completing the "fees → treasury → allocation" pipeline;
2. Asset Structure: Gradually establishing a BTC/ETH long-term accumulation position alongside the existing stablecoin + WETH core holdings, while reducing management overhead and improving treasury resilience through long-tail asset disposal;
3. Execution: Maintaining a 10–20% flexible range, with the core team disclosing quarterly and accountable to governance.
4. Protocol Upgrade: Allocating approximately $5M USD in stablecoins as V7 Solver operating liquidity to ensure sufficient market-making depth at Tokenlon V7 launch, reduce cold-start risk, and accelerate user migration and trading volume growth;

Proposal Execution Items

If TIP 43 passes, the core team will execute in tranches within 30 to 60 days:

1. Publish a "Community Treasury Asset Snapshot Report" (full asset list across all three addresses, plus long-tail asset summary);
2. Execute long-tail asset disposal and establish the initial BTC/ETH dynamic position;
3. Complete the transfer of approximately $5M USD in stablecoins to the V7 Solver liquidity account, and publish a fund deployment plan and monitoring framework;
4. Upon completion, publish an execution update covering: actual disposal list and price ranges, BTC/ETH purchase quantities and cost basis,Solver liquidity funding status,and the updated treasury asset structure;

Voting

• Eligible voters: Wallets holding LON, xLON, or LON LP tokens (including unclaimed LON rewards)

Voting Options:

•  A. Support — Agree to consolidate the three multi-sig wallets under the Community Treasury, and authorize use of 10–20% of total stablecoin holdings for dynamic BTC/ETH asset allocation,plus an additional 20% (approximately $5M USD) of stablecoins for Tokenlon V7 Solver liquidity supply;
•  B. Oppose — Maintain the status quo; do not establish a unified treasury definition, and do not proceed with BTC/ETH strategic accumulation or the Solver liquidity plan.