> For the complete documentation index, see [llms.txt](https://arvo.gitbook.io/arvo/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arvo.gitbook.io/arvo/2.-protocol-overview.md).

# 2. Protocol Overview

Access to private business ownership has traditionally been limited to founders, private equity firms, family offices and institutional investors. Participation typically requires significant capital, established networks and long investment horizons.

Arvo combines established operating businesses with blockchain infrastructure through a treasury-backed acquisition model. The operating businesses continue to trade through their existing legal and corporate structures, generating profits from their normal commercial activities. Blockchain provides the infrastructure for governance, Treasury transparency, staking and protocol participation.

Each operating business remains financially independent. Before any profits are contributed to the Treasury, sufficient capital is retained within the business to meet taxation, working capital requirements, operational investment and future growth.

Following these requirements, **50% of distributable profits are contributed to the Arvo Treasury**, with the remaining 50% retained by the operating business to support its continued development and long-term resilience.

Treasury capital is allocated in accordance with the investment framework set out in this whitepaper. Capital is deployed to invest in additional operating businesses, strengthen Treasury reserves, fund Treasury-backed stablecoin staking rewards, support protocol operations, execute governance-approved token buybacks and other strategic initiatives approved through governance.

As additional operating businesses are acquired, the Treasury benefits from multiple sources of profit generation. This diversified approach reduces reliance on any single business and increases the capital available for future investment, supporting the long-term growth of both the Treasury and the operating portfolio.

The ARVO token provides the governance and participation layer for the protocol. Holders are able to participate in Treasury-backed staking, governance and other protocol functions, while the operating businesses remain the economic foundation of Treasury growth.

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