As an integral part of governance, the treasury allows the ability to vote on options that may have outright costs to implement. Here, we propose a set of rules by which we believe the treasury should work. We also present a process for requesting funding from the treasury.
1. Rate of release to Treasury
The treasury has been attributed 8% of the total supply of VYFI, or 36,000,000 tokens. This supply will be given to the Treasury once per year, on the anniversary of its creation, for four years, with the amount of nine million $VYFI. This will begin within one week of the launch of the governance.
2. How the Treasury is held
The treasury will be held by the business in a multi-sig wallet, with 3/5 signatures required to make any withdrawal.
3. Proposals eligible for Funding
Eligible proposals must meet the following criteria:
- Must have a definitive outcome for the expense
- Must have a finite time limit over which the funds will be spent
- For a proposal to be eligible for funding, it must be related to the VyFinance platform in some manner. This can include, but is not limited too:
a) Technical development
b) Community Incentives
c) Research into new products
d) Ecosystem development
4. Realistic capacity for implementation
This list is designed to be open to interpretation. As the community begins making proposals and putting them up to a vote, these requirements will be further refined through experience.
4. Maximum proposal funding
No proposal can request more than 1% of the treasury, or 3% of the ADA contained in our VYFI/ADA liquidity pool, whichever of these values is lower. For the first year, the treasury will contain 9 million $VYFI. This means the maximum that any proposal can request is 90,000 $VYFI for the first year.
5. Banned Funding Requests
The following cannot be funded through the governance:
- Direct payments to the BAR
- Requests with no relevance to VyFinance
- Any request to convert more than 0.2% of the treasury contents, per month, for the purpose of storage in the treasury
- Proposals that can be can implemented without costs
- Payments made directly to any given individual, with an exception for Hired Contractors
- Donations of an amount greater than 10k $VYFI in value
This list is not exhaustive, and can be voted on by the community.
6. Maximum Monthly Payout
To minimize the maximum price impact the treasury can have, the maximum that can be sold down by the treasury on a monthly basis will be 2% of the treasuries contents.
7. Double Jeopardy
Once a proposal has been voted down, the same proposal cannot be made for a period of at least 1 year from the date that the proposal failed.
8. Proposal Budgets
All proposals requesting to use the treasury must include a budget. If this is not known, or is unable to be completed by the proposal creator, a vote will be held to have a budget built by the team for any given proposal.
9. Creating Proposal Budgets
Budgets must include an outline of expenses, and their expected cost in USD. It must also have an expected time-frame for completion of the proposal. An example of a Proposal Budget can be seen here: Proposal Budget Example
A lot of the budget will be an estimate, but it is important for the community to discuss these budgets to ensure that they are realistic and implementable.
10. Requesting the creation of a Proposal Budget
If you have a good idea, but are not sure how to build a budget outline, you are able to create a proposal for the team to build the budget. If the community believes this is an important implementation, and the vote passes, a budget will be produced within a month and presented to the governance for discussion.
11. Treasury Request Process
All treasury requests must meet the criteria required for voting, with the team holding final Veto on any vote that appears to be unrelated to the platform. The process to request funds from the treasury will be as follows:
- Community Discussion
- Construction of initial proposal
- Release of initial proposal as a discussion thread
- Community Iteration
- Release of final proposal on the Governance Forum
- Final discussion on form of proposal and approval from the community
- Proposal released on Governance platform for vote
12. Proposal Layout for Treasury Request
Every proposal must have be outlined in the following format:
Title: When creating a proposal, the user must begin the title with “I Propose…” and then write the proposal they wish to have discussed.
Enter a message: Here the user must include a description of why they believe the proposal is important for the platform, and the expected outcome upon completion of the proposal. Supporting evidence of the expected outcome is required. The total amount being requested in $VYFI must be stated.
First Message: The first message from the creator must be an expected budget outline, so that a treasury request can be voted on.
13. Requirements to change rules
All votes on changes to these rules require a 2/3 majority vote from the governance to pass. The initial implementation of these rules will require a 50.1% majority to pass.
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