# Proposal System

Members can propose treasury investments using Point 2. These proposals are democratically funded and transparently executed.

**Proposal Terms**

<table data-header-hidden><thead><tr><th width="261.84375"></th><th width="196.73046875"></th></tr></thead><tbody><tr><td>Parameter</td><td>Value</td></tr><tr><td>Investment Amount</td><td>$20</td></tr><tr><td>Required Point 2 (Proposer)</td><td>500</td></tr><tr><td>Required Point 2 (Participant)</td><td>150</td></tr><tr><td>Hard Cap</td><td>$600 (30 slots)</td></tr><tr><td>Launch Threshold</td><td>$420 (70% filled)</td></tr></tbody></table>

Failure to reach the threshold triggers automatic refunds with partial penalties.

**Execution Logic**

1. Proposer burns 500 Point 2 to submit proposal
2. Participants burn 150 Point 2 to join
3. If 70% funding met → investment proceeds, all Point 2 burned
4. If threshold unmet:
   * Proposer: 30% Point 2 penalty
   * Participants: 15% penalty
   * Remaining points refunded

**Loss Prevention**

If investment incurs a 20% loss, the position is auto-terminated and remaining funds returned to the treasury.

**Profit Distribution**

<table data-header-hidden><thead><tr><th width="206.609375"></th><th width="97.51953125"></th><th></th></tr></thead><tbody><tr><td>Recipient</td><td>Share</td><td>Notes</td></tr><tr><td>Proposer + Participants</td><td>60%</td><td>Based on individual contribution</td></tr><tr><td>Proposer Bonus</td><td>5%</td><td>Incentive for initiative</td></tr><tr><td>Treasury</td><td>35%</td><td>For reinvestment and sustainability</td></tr></tbody></table>
