Treasury Management

Outlines how the DAO manages its treasuries, including structure, oversight, approval processes, and fund types. Covers tools like Realms and Squads used for tracking and control.

How the DAO Manages Its Funds

• We use Realms and Squads to track working group treasuries and support transparent, on-chain governance.

• Funds like the Core Operations Fund or Reserve Fund are held in Squads.

• The Community Treasury is managed through Tap In.

• Budgets are required for all spending requests.

• Reimbursements require receipts or proof of payment.

• DAO-sponsored Clubs, Teams, Projects, and Working Groups that receive funding will manage their own assets through a multi-sig on Squads.

• The Core Team may hold at least one signer on DAO-sponsored Squads for oversight and coordination.

Treasury Structure

Asset Ownership

• DAO Property: All assets, revenues, royalties, or rights generated by the DAO or transferred into a DAO treasury or DAO-sponsored Squad are DAO property.

• Reassignment: They cannot be reassigned or clawed back except by a new, mutually executed agreement between the DAO and the original grantor.

• Clawback Proposals: Any proposal that functions as a clawback, including attempts by working groups to reclaim revenue or operational funds outside an approved budget or proposals framed as a “gift” or “return,” is invalid without such an agreement and may be rejected as misuse.

Approval Requirements & Oversight

• Treasuries and working group funds must maintain a minimum 60% approval threshold to move any assets.

• This applies to all treasuries and funds, including:

  • Main Treasury

  • Community Treasury

Main Treasury

• Purpose: Central holding for all incoming funds and high-level DAO expenses.

• Use: Primarily supports DAO projects, working groups, strategic partnerships, and long-term initiatives. Also funds other DAO treasuries, such as the Community Treasury. Not used for individual contributor payments. Those are handled through other designated funds.

• Inflows: External revenue such as protocol earnings, referrals, royalties, NFT sales, grants, and partnerships. These typically enter the Main Treasury first.

Community Treasury

• Purpose: Supports proposals submitted and voted on by DAO members.

• Use: Ideal for funding events, community tools, or projects.

• Allocation: Assets moved here are reserved for community use. Unused funds remain for future community proposals.

Working Group & Project Revenue Share

• Policy: Working groups must have a clear way to return a portion of revenue to the DAO.

• Agreement: The group or project proposes a revenue share percentage for DAO approval. This may be structured per project, as a percentage of net revenue, or through another agreed method.

• Documentation: Once approved, the terms are recorded in the Codex. Revenue share terms are typically set during group formation or at project kickoff.