# Redemption Treasury

The Redemption Treasury is the on-chain reserve that backs Gencoin's value and ensures economic stability throughout the Generos protocol. Denominated in USDC, it receives roughly 80% of every gem purchase, creating a direct link between participation and protocol reserves.

### On-Chain Address

[2GSuohuTV7qLntbJF7DafGqPGVJw99LP6bctpL758NBC](https://solscan.io/account/2GSuohuTV7qLntbJF7DafGqPGVJw99LP6bctpL758NBC#portfolio)

### Value Flow Mechanism

When a participant purchases a gem, roughly 80% of that purchase flows directly into the Redemption Treasury as USDC. For a $5 Ruby, that is $3.75. This allocation scales across all gem tiers, so reserves grow predictably with participation.

### Backing Gencoin's Value

Every Gencoin in circulation is backed 1:1 by USDC held in the Redemption Treasury. The backing ratio never dilutes: if the treasury holds 1 million USDC, exactly 1 million Gencoin can exist. This is not a promise. It is an on-chain fact that anyone can verify.

### Transparency and Trust

The Redemption Treasury operates entirely on-chain. All holdings and transactions are publicly verifiable at any time. Anyone can audit the treasury to confirm the protocol's financial integrity without needing to trust any intermediary.

### Economic Stability

By aligning Gencoin supply directly with USDC holdings, the Redemption Treasury ensures predictable value and prevents volatility. Participants can be confident that the Gencoin they generate through giving is backed by real, auditable reserves and redeemable through the Seed Redemption process.