The treasury is designed to incentivise the responsible use of accrued funds. Each spend period, unused KSM is supposed to be burned unless directed toward spending proposals. Currently, 0.2% of these unspent funds are automatically diverted to the Kappa Sigma Mu Society (See the pot here), an allocation hardcoded into the runtime, and beyond direct community control, hence largely locked and unused.

At the inception of Kappa Sigma Mu, this mechanism was intended to support an innovative, experimental approach to economic games. However, over time, the funds allocated to the Society have remained largely unused and inaccessible, with no measurable benefit justifying continued support.

The Society has accumulated more than enough funds (currently more than $3M) to cover any operational costs, yet continues to receive automatic funding without fulfilling its original goals. Hence, this proposal seeks to signal the member's desire to stop this perpetual funding to Kappa Sigma Mu, acknowledging that the current structure no longer serves its purpose. As long as Society cannot effectively utilise these funds, there is no need to perpetuate the 0.2% allocation, especially when those funds could be better utilised by the treasury or burned (something that requires a separate discussion involving broader token holders).

While non-binding, if approved, it will send a signal to proceed with creating an RFC to remove the 0.2% allocation and direct those funds to the burn or keep it on a treasury address.