Purpose
The Index Treasury is the accumulation engine. It is a dedicated on-chain address that receives the creator fees generated by $MROCK trading and converts them into holdings of the MEME500 basket on a fixed cadence. It is the part of the project that has to work for the joke to be a product.
The cycle
- Consolidation. Creator fees from $MROCK trading settle continuously into the treasury address in ETH, the pairing asset.
- Epoch close. At each epoch boundary the treasury balance is snapshotted and split according to the target allocation below.
- Basket purchase. The basket-acquisition share is spent on open-market purchases of MEME500 constituents, in proportion to their target weights.
- Sleeve reserve. The Momentum Sleeve share is set aside in the sleeve’s reserve, from which tactical deployments are made outside the epoch cadence (see below).
- Buyback. The buyback share purchases $MROCK on the open market. Purchased $MROCK is held by the treasury. It is not burned.
- Publication. The treasury’s holdings, the index NAV and the backing ratio are published on-chain.
Target allocation
| Bucket | Use | Share |
|---|---|---|
| Basket acquisition | Open-market purchases of MEME500 constituents | 45% |
| Momentum Sleeve | Hard-capped tactical deployments on volume acceleration | 10% |
| $MROCK buyback to treasury | Repurchased $MROCK, held not burned | 25% |
| Operations | Indexing, infrastructure, execution costs | 20% |
Epoch cadence
The epoch length is published at launch. The illustrative target is six hours, which is frequent enough that accumulation is visible day to day and infrequent enough that execution costs remain a small fraction of the amount deployed. A cadence that is too fast wastes fees on gas and slippage. A cadence that is too slow lets the treasury sit idle. Six hours is a guess; the launch parameter replaces it.
Why the buyback is not burned
Burned tokens are gone. Treasury-held tokens are an asset the index can use: for Phase II staking distributions, for Phase III cross-index economics, or simply as a reserve that is visible on-chain. We prefer a balance sheet to a bonfire. Holders who wanted a burn should note that treasury-held $MROCK is removed from circulation for as long as it is held, which for the foreseeable future is indefinitely.
The Momentum Sleeve
Alongside the systematic epoch purchases of the core basket, the treasury operates a small, hard-capped tactical allocation called the Momentum Sleeve. The core owns the meta. The sleeve chases it.
Trigger. When a token native to Robinhood Chain exhibits an abnormal volume acceleration — a rate of change in traded volume that exceeds a published threshold relative to its own trailing baseline — the sleeve may deploy a limited amount of capital into it rapidly, outside the epoch cadence. Detection criteria are published at launch. The sleeve acts on the trigger; it does not act on opinion.
Hard cap. The sleeve is capped at 10% of treasury deployments (illustrative). The cap is the design: a failed position is a rounding error and a successful one is meaningful. The cap cannot be exceeded by discretion. Raising it requires a methodology amendment.
Execution. Sleeve deployments are executed immediately on trigger, not at epoch close. Position sizing is bounded by the sleeve reserve and by a per-position limit published at launch. A single sleeve position may not exceed a published fraction of the target’s pool liquidity.
Recycling. Sleeve gains are not retained by the sleeve. When a sleeve position is closed at a gain, proceeds flow back into the core basket at the next epoch. When a position is closed at a loss, the loss is borne by the sleeve reserve alone. The core basket is never sold to refill the sleeve.
Eligibility exemption. Sleeve positions are explicitly exempt from the standard eligibility criteria pending review. A token that has been live for three days with a thin pool cannot qualify for the MEME500; that is exactly the kind of token the sleeve exists to reach first. This exemption is precisely why the cap exists. A sleeve position that later satisfies eligibility may be proposed for core inclusion at the next Rebalance Day, through the normal announcement and vote process.
Reporting. Sleeve positions, entries, exits and realised outcomes are published on-chain with the same cadence as the core basket. Nothing the sleeve does is hidden inside an aggregate.
NAV and backing ratio
Two figures are published each epoch.
- Index NAV — the market value of the treasury’s basket holdings, including open sleeve positions, in ETH, at the time of publication.
- Backing ratio — NAV divided by the market capitalisation of circulating $MROCK.
Neither figure is a price floor. NAV is not redeemable and the backing ratio is a description, not a promise. See Risk Disclosures.
Execution constraints
Treasury purchases are made in pools that are, by the nature of the universe, shallow. Each purchase is sized to a slippage tolerance published at launch; if a constituent’s pool cannot absorb its allocated share within tolerance, the remainder is carried to the next epoch rather than executed badly. Over time this means the treasury systematically underweights constituents whose liquidity is thin relative to their target weight. This is intentional.