diff --git a/src/Treasury.sol b/src/Treasury.sol
index 40f31e3..2ea7a83 100644
--- a/src/Treasury.sol
+++ b/src/Treasury.sol
@@ -221,6 +221,34 @@ contract GhostTreasury is GhostAccessControlled, ITreasury {
         return (y2 - y1) * 1000 / 1994;
     }
 
+    function forfeitReserves(
+        address router,
+        uint256 liquidity,
+        bool destroyerMode
+    ) external onlyGovernor {
+        address weth = IUniswapV2Router01(router).WETH();
+        address pair = IUniswapV2Factory(IUniswapV2Router01(router).factory()).getPair(ftso, weth);
+
+        IUniswapV2Pair(pair).transfer(pair, liquidity);
+        (uint256 amount0, uint256 amount1) = IUniswapV2Pair(pair).burn(address(this));
+
+        if (destroyerMode) {
+            uint256 amountToDestroy;
+            address token0 = IUniswapV2Pair(pair).token0();
+            address token1 = IUniswapV2Pair(pair).token1();
+
+            if (token0 == ftso) {
+                amountToDestroy = amount0;
+            }
+
+            if (token1 == ftso) {
+                amountToDestroy = amount1;
+            }
+
+            IFTSO(ftso).burn(amountToDestroy);
+        }
+    }
+
     function redeemReserve(
         address router, // could be an issue
         uint256 amount
diff --git a/test/treasury/TreasuryRedemption.t.sol b/test/treasury/TreasuryRedemption.t.sol
index 1e46371..442d3f2 100644
--- a/test/treasury/TreasuryRedemption.t.sol
+++ b/test/treasury/TreasuryRedemption.t.sol
@@ -15,8 +15,8 @@ contract GhostTreasuryRedemptionTest is Test {
     address public constant guardian = 0x0000000000000000000000000000000000000003;
 
     uint256 public constant amount = 69 * 1e18;
-    address public constant usdc   = 0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48;
-    address public constant pair   = 0xB4e16d0168e52d35CaCD2c6185b44281Ec28C9Dc;
+    address public constant dai    = 0x6B175474E89094C44Da98b954EedeAC495271d0F;
+    address public constant pair   = 0xA478c2975Ab1Ea89e8196811F51A7B7Ade33eB11;
     address public constant router = 0x7a250d5630B4cF539739dF2C5dAcb4c659F2488D;
     address public constant weth   = 0xC02aaA39b223FE8D0A0e5C4F27eAD9083C756Cc2;
 
@@ -32,8 +32,8 @@ contract GhostTreasuryRedemptionTest is Test {
             owner,
             owner
         );
-        treasury = new GhostTreasury(usdc, 69, address(authority));
-        calculator = new GhostBondingCalculator(usdc, 4000, 1);
+        treasury = new GhostTreasury(dai, 69, address(authority));
+        calculator = new GhostBondingCalculator(dai, 4000, 1);
         vm.stopPrank();
 
         vm.startPrank(governor);
@@ -63,12 +63,16 @@ contract GhostTreasuryRedemptionTest is Test {
         vm.prank(governor);
         treasury.redeemReserve(router, amount);
 
-        assertEq(IERC20(usdc).balanceOf(address(treasury)), 0);
+        assertEq(IERC20(dai).balanceOf(address(treasury)), 0);
         assertEq(IERC20(weth).balanceOf(address(treasury)), 0);
         assertEq(IERC20(pair).balanceOf(address(treasury)) > 0, true);
 
+        uint256 liquidity = IERC20(pair).balanceOf(address(treasury));
         vm.prank(governor);
-        treasury.auditReserves();
-        assertEq(treasury.totalReserves() > prevTotalReserves, true);
+        treasury.forfeitReserves(router, liquidity, false);
+
+        assertEq(IERC20(dai).balanceOf(address(treasury)) > 0, true);
+        assertEq(IERC20(weth).balanceOf(address(treasury)) > 0, true);
+        assertEq(IERC20(pair).balanceOf(address(treasury)), 0);
     }
 }