# Value Accrual

The Carats Smart Contract generates fees, in the form of Carats, which are distributed to the Bitcarbon Foundation to fund commodity custody, operations, marketing and development.   These fees scale with the total AUM of the Carats Reserve and with the volume of transactions.  

If these fees exceed operational requirements, Bitcarbon token holders may authorize the Foundation to use excess Carats to buy back Bitcarbon.  If the fees are insufficient for operational requirements, the Foundation may sell Bitcarbon from its treasury to generate funding.

While purchasers can not have any expectation of profit from the purchase of Bitcarbon, as a DAO, Bitcarbon token holders may propose and approve airdrops and similar fee switch initiatives in the future.

<figure><img src="/files/62TFVEZ7QbxldE6IZaWA" alt=""><figcaption></figcaption></figure>


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