# SHYT → HOLI Value Flow

This is the concentrated path from community tape to HOLI's initial backing. It is not a second Genesis table. Sizes live in [Launch](/launch/phase-i).

**SHYT trading**
→ **tax income accumulates in the Treasury**
→ **after-tax buybacks accumulate ~$200k market value of SHYT**
→ **the fund injects that SHYT into the green-channel (SHYT/HOLI) pool**
→ **HOLI opens with Treasury backing**

## What each arrow does

1. **SHYT produces trading.** SHYT is the MEME. Flow is the input.
2. **Tax accrues to the Treasury.** The **5%** tax splits **80% Treasury / 20% development** for the life of the tax. **80%** is Treasury income. (This path is that 80%.)
3. **The Treasury buys SHYT.** Phase I *use* of the 80%: **after-tax buybacks** become a Treasury SHYT position, about **$200,000** mark at Genesis.
4. **The fund injects that SHYT into the green-channel pool.** **Green-channel issuance at full quota: another 200,000 HOLI, pooled with SHYT at $1 per HOLI.** That lot is half of the **Genesis-stage full issuance total: 400,000 HOLI (of which 200,000 sit in Treasury LP).** The **~$200k** after-tax-buyback SHYT becomes the external-asset side of Treasury-owned SHYT/HOLI POL. The LP is held by the **House of Liquidity Treasury**; it is **part of project assets**; the **SHYT in it counts in NAV** at **1×**. Do not 2× the LP.
5. **HOLI gets initial Treasury backing.** The POL position is reserve, exit, routing, and a fee asset from day one. HOLI is then a share of a Treasury that already owns a SHYT/HOLI market — not a share of an empty wallet.

USDG in at Genesis is additional capital. It is not this path. This path is only how SHYT activity becomes HOLI backing.

The two tokens still are not a convert. SHYT holders do not receive HOLI one-for-one because tax was paid. They get a house whose opening liquidity and NAV rest, in part, on the SHYT the tape already bought.