BUDZ TREASURY POLICY

Document ID: BUDZ-TREAS-001

Version: 3.0

Effective Date: December 13, 2025

Last Updated: December 18, 2025

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TREASURY SUMMARY The BUDZ Treasury manages platform funds using the 15/15/70 distribution model: 15% to Founder, 15% to Player Rewards, and 70% to Platform Operations. All transactions are transparent and permanently recorded on the Base blockchain.

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KEY METRICS

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TABLE OF CONTENTS

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SECTION 1: PURPOSE AND SCOPE

1.1 Purpose

This Treasury Policy establishes the rules, procedures, and controls for managing BUDZ platform funds. It ensures transparency, security, and accountability in accordance with the Terms of Service and applicable law.

1.2 Scope

This Policy applies to:

(a) All platform revenue and fees collected;

(b) All disbursements from treasury wallets;

(c) The Player Rewards Pool;

(d) All reporting and transparency obligations.

1.3 Guiding Principles

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SECTION 2: TREASURY STRUCTURE

2.1 Wallet Structure

BUDZ uses a three-wallet structure:

2.2 Network

2.3 Legal Status

Treasury funds are assets of GamesOnChain LLC. They are managed by the Founder for platform operations and player rewards as specified in this Policy.

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SECTION 3: REVENUE SOURCES

3.1 Primary Revenue Sources

3.2 Secondary Market Royalties

Royalty collection depends on marketplace support for ERC-2981.

3.3 Daily Auction Revenue

Daily Bud Auction proceeds are distributed according to the same 15/15/70 split.

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SECTION 4: FEE DISTRIBUTION

4.1 The 15/15/70 Model

All platform fees (10% of transactions) are distributed:

4.2 Example Distribution

For 1 ETH in total platform fees:

4.3 Automatic Distribution

Fee distribution is handled automatically by smart contracts at the time of transaction.

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SECTION 5: DISBURSEMENT PROCEDURES

5.1 Founder Allocation

The Founder allocation (15%) is used at the Founder's discretion for:

5.2 Operations Allocation

The Operations allocation (70%) is used for:

5.3 Player Rewards Allocation

The Player Rewards allocation (15%) is:

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SECTION 6: FINANCIAL CONTROLS

6.1 Separation of Funds

The three allocations (Founder, Rewards, Operations) are held in separate wallets and not commingled.

6.2 Reserved Funds

Operations wallet maintains:

6.3 Spending Authority

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SECTION 7: PLAYER REWARDS POOL

7.1 Overview

15% of all platform fees are allocated to the Player Rewards Pool for weekly distribution to active players.

7.2 Distribution Schedule

7.3 Eligibility

Players receive rewards through:

7.4 Activity Score Calculation

Activity score is calculated based on:

7.5 No Guarantees

IMPORTANT Player rewards are not guaranteed income. Distribution amounts depend on: - Total platform activity - Individual player contribution - ETH price fluctuations - Platform sustainability

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SECTION 8: REPORTING AND TRANSPARENCY

8.1 Real-Time Transparency

All treasury transactions are:

(a) Permanently recorded on the Base blockchain;

(b) Publicly visible to anyone;

(c) Viewable via block explorer;

(d) Auditable by any interested party.

8.2 Public Wallet Addresses

All wallet addresses will be published and linked from digibuds.xyz after deployment.

8.3 Periodic Reports

8.4 Report Contents

Each report includes:

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SECTION 9: SECURITY MEASURES

9.1 Wallet Security

9.2 Key Management

The Founder maintains secure key management including:

9.3 Incident Response

If compromise is suspected:

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SECTION 10: AMENDMENTS

10.1 Amendment Process

This Treasury Policy may be amended by the Founder with:

10.2 Non-Amendable Provisions

The following may not be changed:

(a) The Player Rewards allocation (15% minimum);

(b) The transparency and on-chain recording requirements;

(c) The separation of Rewards funds from Operations.

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APPENDIX: WALLET ADDRESSES

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VERSION HISTORY

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This Treasury Policy describes GamesOnChain LLC fund management practices.

Treasury Inquiries: binarydrool@protonmail.com