HOW IT WORKS

Trench Capital has a fixed maximum supply of 1,000,000,000 $TRENCH.

The supply is fixed. No additional $TRENCH is created to fund future operations, investments, or rewards.

$TRENCH is the liquid token through which the Trench Capital economy operates. Every time $TRENCH is transacted, a portion of that transaction contributes to the continued operation and growth of the DAO.

Every $TRENCH transaction is subject to a 2% protocol tax, divided equally.

The first 1% is automatically directed to the Trench Capital Treasury — the capital the DAO ultimately uses to fund investments.

The second 1% is directed toward the continued development and expansion of Trench Capital: development, infrastructure, research, marketing, communications, partnerships, and community initiatives.

The distinction is intentional. The Treasury invests. Development & Marketing builds.

Every transaction continuously contributes to the Treasury, which therefore grows organically through activity within the $TRENCH market.

The Treasury is not simply a wallet controlled by a team. It is the capital pool from which Trench Capital's investment mechanism operates.

Once sufficient capital has accumulated according to the protocol's investment parameters, it becomes available for an approved investment proposal.

More activity → more treasury capital → more investment capacity.

$TRENCH can be deposited into the Trench Capital staking contract. In exchange, the staker receives a non-transferable staking representation: dTRENCH.

dTRENCH represents a user's staked position in the DAO. The amount of dTRENCH held determines a user's position within the governance system.

Stakers are divided into two functional groups: The Partners, the largest dTRENCH holders, who form the proposal class — and The Many, all other dTRENCH holders, who form the voting body.

This structure separates proposal creation from proposal approval.

The top 50 dTRENCH holders are designated as Partners.

Partners have the ability to submit investment proposals to the DAO. Their role is not to control the Treasury. Their role is to identify opportunities worthy of consideration by the network.

A Partner may bring forward an opportunity involving Robinhood Chain protocols, infrastructure, DeFi, trading applications, consumer applications, developer tooling, RWA infrastructure, liquidity, new financial primitives, or culture and ecosystem projects.

Partners can propose. They do not receive an automatic vote simply because they are Partners.

Everyone outside the top 50 dTRENCH holders belongs to The Many — the voting body of Trench Capital.

When an investment proposal is submitted by a Partner, The Many determine whether the DAO should deploy capital toward it.

This creates a deliberate separation of powers: Partners find the deals. The Many decide which deals receive capital.

A large stake can provide proposal authority, but it does not provide unilateral control over the Treasury.

An investment proposal is effectively a venture capital pitch submitted directly to the network.

A proposal should establish: What is being built? Who is building it? Why does it matter to Robinhood Chain? How much capital is being requested? What does Trench Capital receive in exchange? What is the project's token structure? What are the relevant risks? What is the vesting or distribution schedule? How will the investment ultimately return value to Trench Capital?

The objective is to make every investment decision transparent and verifiable.

Once a proposal has been submitted, The Many vote on whether the DAO should fund it.

A successful vote authorizes the protocol to execute the investment according to the predefined parameters.

The Treasury does not depend on a discretionary fund manager manually deciding when to send capital. The investment mechanism is designed to execute according to the rules established by the protocol.

The fund itself is encoded into the system.

Once an investment proposal passes and the required Treasury conditions are satisfied, the protocol deploys the designated investment capital.

In exchange, Trench Capital receives an agreed-upon allocation of the investee project's tokens or other specified consideration. The terms are established before the investment is executed.

Treasury capital enters promising projects. The DAO receives a position in those projects. The position eventually returns value to the Trench ecosystem.

When an investment produces a return, the resulting assets are directed back through the Trench Capital mechanism.

Investment proceeds are not simply extracted by an operator. They are recycled into the token economy: converted back into $TRENCH and processed according to the protocol's distribution and burn mechanics.

Treasury → Investment → Project Growth → Investment Return → $TRENCH → Burn + Staker Distribution → Stronger Network.

The defining feature of the investment model is what happens to returned value. The portion designated for the DAO is divided into two equal parts.

Half of the returned $TRENCH is permanently removed from circulation. The remaining half is distributed to the holders of dTRENCH.

The mechanism therefore has two simultaneous effects: investment success reduces supply, and investment success rewards participants who have committed capital to the DAO.

Transactions → Treasury → Staking → Proposals → Governance → Investment → Returns → Burn + Distribution → Compounding.

The network continues operating with a larger body of participants, a stronger investment record, and a continuously replenished Treasury.

The other 1% of every transaction does not enter the investment Treasury. It is reserved for the machinery required to make Trench Capital function and grow.

Development: protocol infrastructure, applications, analytics, tooling, websites. Research: market intelligence, deal research, due diligence, ecosystem analysis. Marketing: content, media, advertising, communications, branding. Business Development: partnerships, founder relationships, ecosystem integrations.

1% Treasury — capital for investments. 1% Development & Marketing — capital for building Trench Capital itself.

The mechanism may be modeled after an existing decentralized investment architecture. The mission is distinctly Trench.

Trench Capital exists to identify, finance, and accelerate the projects that can make Robinhood Chain a complete onchain economy. The DAO is not limited to one category — it can fund whatever the ecosystem needs.

The common denominator is simple: Does it contribute to the development of Robinhood Chain?

Trench Capital takes a small percentage of every $TRENCH transaction, converts that activity into a continuously replenished investment treasury, allows its largest stakers to surface opportunities, allows the broader staking community to approve them, and recycles investment returns through burn and staking mechanisms.

Not a traditional venture fund. Not a passive treasury. Not a company with a discretionary investment committee.

An autonomous venture capital machine. Built in the trenches. Capitalized by the network. Governed by the network. Investing in the network.