# Protocol Revenue

### How is the protocol revenue distributed?

80% of all interest accrued is distributed to the suppliers who deposited the assets in Liqwid markets. Interest accrued increases the value of your qTokens in real time (continuously increasing qToken Exchange rate).\
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The part of the value created which is not distributed to the suppliers is called the “Net margin”. Currently Net margin is set to 20%. According to approved governance votes 100% of Net margin is currently accruing to the DAO Treasury reserve.\
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**Function of the DAO Treasury reserve**

The DAO treasury is collecting reserves to fund future protocol developments and fund developers building products that scale adoption across the Liqwid ecosystem.


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