Regarding the growth budget in governance proposals, many people have misconceptions. The proposal suggests setting the governance body's annual growth budget at 20 million tokens, to be implemented starting January 1, 2026, and distributed quarterly via smart contracts.

Here's the key point—this **is not an issuance**. Many people see this number and naturally assume that 20 million new tokens are minted each year, but that's a misunderstanding. In reality, the governance team (which can also be understood as the laboratory) has an annual budget of 20 million tokens that they can utilize. The source of this money is the **treasury**, not newly minted tokens out of thin air.

In other words, funds are allocated from the existing treasury reserves for incentives and protocol development. The quarterly distribution system makes fund release more stable and controllable, avoiding market volatility caused by large one-time injections. This approach promotes ecosystem development while ensuring transparency and rationality in fund usage. Understanding this distinction is crucial, as it directly impacts your judgment of the token economic model.