> For the complete documentation index, see [llms.txt](https://docs.baumai.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.baumai.xyz/tokens/treasury-lp-out-ladder.md).

# Treasury LP-out ladder

How Baum raises capital — from the open market, at prices set in advance.

The ladder is how Baum raises capital. **There is no private round.** The treasury converts up to 20% of supply to liquidity in fixed tranches as BAUM's fully diluted valuation (FDV) reaches the bands below, so Baum's funding comes from the open market at prices everyone can see in advance.

The first 15% is defined here. Tranches are placed as one-sided liquidity across each band.

| FDV band     | Tranche                              | Cumulative |
| ------------ | ------------------------------------ | ---------- |
| $2M – $4M    | 1.00%                                | 1.00%      |
| $5M – $7M    | 1.00%                                | 2.00%      |
| $8M – $10M   | 1.00%                                | 3.00%      |
| $12M – $15M  | 1.00%                                | 4.00%      |
| $18M – $21M  | 1.00%                                | 5.00%      |
| $25M – $30M  | 1.00%                                | 6.00%      |
| $30M – $60M  | 3.00%, placed evenly (1% per $10M)   | 9.00%      |
| $60M – $100M | 6.00%, placed evenly (1.5% per $10M) | 15.00%     |

The remaining 5.56% of treasury supply may be placed between $100M and $250M FDV at the treasury's discretion.

Fully executed through $100M, the ladder raises approximately **$6.9M** at band midpoints, before LP fees.

## Use of proceeds

Proceeds fund:

* Baum operations
* USDX/mUSDX liquidity
* USDX Loop capital

{% hint style="info" %}
Each [sub-DAO](/network/sub-daos.md) token's LP bucket follows this same ladder.
{% endhint %}


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