> For the complete documentation index, see [llms.txt](https://docs.builtbydao.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.builtbydao.com/governance/treasury.md).

# Treasury

The Treasury is Built By DAO's primary fund vault, holding assets with built-in safety mechanisms that protect against rapid drainage—even through compromised governance.

***

{% hint style="info" %}

## 💰 Treasury Overview

**🎯 Purpose:** Secure storage and controlled disbursement of DAO assets

**🔐 Access:** All withdrawals require governance approval

**⚠️ Safety:** Limits cannot be bypassed, even by governance votes
{% endhint %}

|        🏦 Type        |  🛡️ Protection  |           📊 Rails           |   🔒 Reserve  |
| :-------------------: | :--------------: | :--------------------------: | :-----------: |
| **Multi-asset Vault** | **Safety Rails** | **Per/Daily/Monthly Limits** | **15% Floor** |

***

{% tabs %}
{% tab title="📊 Assets" %}

## 📊 Supported Assets

The Treasury holds:

| Token    | Decimals | Notes                    |
| -------- | -------- | ------------------------ |
| 💵 USDC  | 6        | Primary stablecoin       |
| 💵 USDT  | 6        | Secondary stablecoin     |
| 💵 DAI   | 18       | Decentralized stablecoin |
| 💵 PYUSD | 6        | PayPal stablecoin        |
| 💎 BLTBY | 18       | Native token             |
| ⟠ ETH    | 18       | Native currency          |

New tokens can be added via governance proposal.

***

## 💳 Deposits

Anyone can deposit:

| Method              | Detail                         |
| ------------------- | ------------------------------ |
| 📈 Revenue routing  | Automatically from DAOBusiness |
| 🎁 Direct donations | Accepted from any address      |
| ✅ Approval          | No approval required           |

***

## 📤 Withdrawals

Only via governance:

| Requirement  | Detail                         |
| ------------ | ------------------------------ |
| 📝 Proposal  | Financial/Strategic type       |
| 🗳️ Vote     | Must pass with >60%            |
| 🛡️ Rails    | Must comply with safety limits |
| ⏱️ Timelock  | Execution after 72 hours       |
| {% endtab %} |                                |

{% tab title="🛡️ Safety Rails" %}

## 🛡️ The Four Safety Rails

These limits **cannot be bypassed**, even by governance votes:

***

### 📝 Per-Proposal Limit: 10%

| Treasury Value | Max Single Withdrawal |
| -------------- | --------------------- |
| $1,000,000     | $100,000              |
| $10,000,000    | $1,000,000            |
| $100,000,000   | $10,000,000           |

**Purpose:** Prevents a single malicious proposal from draining significant funds.

***

### 📅 Daily Limit: 5%

| Treasury Value | Max Daily Outflow |
| -------------- | ----------------- |
| $1,000,000     | $50,000           |
| $10,000,000    | $500,000          |
| $100,000,000   | $5,000,000        |

**Purpose:** Limits how quickly funds can be extracted, giving community time to respond.

***

### 📆 Monthly Limit: 20%

| Treasury Value | Max Monthly Outflow |
| -------------- | ------------------- |
| $1,000,000     | $200,000            |
| $10,000,000    | $2,000,000          |
| $100,000,000   | $20,000,000         |

**Purpose:** Caps sustained withdrawal activity, preserving long-term treasury health.

***

### 🔒 Reserve Floor: 15%

| Treasury Value | Minimum Reserve |
| -------------- | --------------- |
| $1,000,000     | $150,000        |
| $10,000,000    | $1,500,000      |
| $100,000,000   | $15,000,000     |

**Purpose:** Ensures the DAO always has emergency funds available.
{% endtab %}

{% tab title="📋 Withdrawal Process" %}

## 📋 Withdrawal Process

### 1️⃣ Proposal Creation

| Field            | Description                 |
| ---------------- | --------------------------- |
| 👤 Recipient     | Specifies receiving address |
| 💰 Amount        | Specifies withdrawal amount |
| 🪙 Token         | Specifies which token       |
| 📝 Justification | Provides reasoning          |

***

### 2️⃣ Voting

| Requirement | Value               |
| ----------- | ------------------- |
| ⏱️ Duration | 7-day voting period |
| ✅ Approval  | >60% required       |
| 📊 Quorum   | 15% required        |

***

### 3️⃣ Timelock

| Detail       | Value                    |
| ------------ | ------------------------ |
| ⏱️ Duration  | 72-hour timelock         |
| 🎯 Purpose   | Community review period  |
| 🚨 Emergency | Can be emergency-stopped |

***

### 4️⃣ Execution

| Step        | Action                    |
| ----------- | ------------------------- |
| ⚙️ Contract | Governance calls Treasury |
| 🛡️ Check   | Safety rails verified     |
| ✅ Limits    | All limits confirmed      |
| 💸 Transfer | Funds transferred         |

***

### 5️⃣ Verification

| Record       | Description                  |
| ------------ | ---------------------------- |
| 📢 Event     | Withdrawal event emitted     |
| 📊 Totals    | Daily/monthly totals updated |
| ✅ Verifiable | Transaction on-chain         |
| {% endtab %} |                              |

{% tab title="⚠️ Attack Protection" %}

## ⚠️ Attack Scenarios

### Without Safety Rails

| Attack                  | Risk                     |
| ----------------------- | ------------------------ |
| 🗳️ Governance attack   | 100% drained in one vote |
| 🔑 Compromised multisig | Rapid drainage possible  |
| 🎭 Social engineering   | Full treasury at risk    |

***

### With Safety Rails

| Attack                 | Maximum Loss         |
| ---------------------- | -------------------- |
| 📝 Single proposal     | 10%                  |
| 📅 One day of attacks  | 5%                   |
| 📆 One month sustained | 20%                  |
| 🔒 Any attack          | 15% always preserved |

***

## ⏱️ Response Timeline

| Day   | Attacker Gains | Community Response |
| ----- | -------------- | ------------------ |
| Day 1 | Max 5%         | Detect anomaly     |
| Day 2 | Another 5%     | Alert community    |
| Day 3 | Blocked        | Emergency action   |
| Week  | \~20% max      | Full response      |

**Key insight:** Community has days to weeks to respond, not minutes.
{% endtab %}

{% tab title="💵 Revenue Flow" %}

## 💵 Revenue Allocation

Income flows through DAOBusiness before reaching Treasury:

```
Revenue Sources → DAOBusiness → Allocation
                                    ├── 70-90% → Treasury
                                    ├── 5-35% → Operating Budget
                                    └── 5% → Founder Fund
```

Percentages vary by revenue source.

***

## 💳 Spending Categories

Typical treasury withdrawals fund:

| Category                | Examples                   |
| ----------------------- | -------------------------- |
| 🏠 Property acquisition | Land, buildings            |
| 🏗️ Construction        | Building costs             |
| 🔧 Equipment            | Tools, machinery           |
| 📋 Operations           | Major operational expenses |
| 💼 Payroll              | Contractor payments        |
| 🚨 Emergency            | Unexpected needs           |
| {% endtab %}            |                            |

{% tab title="🚨 Emergency" %}

## 🚨 Emergency Procedures

### ⏸️ Pause Mechanism

Leadership Council can pause Treasury:

| Aspect       | Detail                        |
| ------------ | ----------------------------- |
| ⏸️ Effect    | Stops all withdrawals         |
| 🗳️ Requires | Supermajority council vote    |
| ⏱️ Duration  | Maximum 7 days                |
| 🔄 Resume    | Requires governance to resume |

***

## 🚨 When to Pause

| Situation             | Action                |
| --------------------- | --------------------- |
| 🔓 Detected exploit   | Immediate pause       |
| 🗳️ Governance attack | Pause and investigate |
| 🐛 Critical bug       | Stop all operations   |
| ⚠️ External threat    | Protective pause      |

***

## 🔄 Recovery Process

| Step         | Action               |
| ------------ | -------------------- |
| 1️⃣          | Identify issue       |
| 2️⃣          | Develop fix/response |
| 3️⃣          | Governance proposal  |
| 4️⃣          | Community vote       |
| 5️⃣          | Resume operations    |
| {% endtab %} |                      |

{% tab title="🔍 Transparency" %}

## 🔍 Transparency

All Treasury activity is transparent:

### On-Chain

| Data            | Visibility       |
| --------------- | ---------------- |
| 💰 Balances     | All queryable    |
| 📋 Transactions | All verifiable   |
| 🛡️ Limits      | Publicly visible |

***

### Reporting

| Frequency  | Report             |
| ---------- | ------------------ |
| 📅 Daily   | Balance snapshots  |
| 📅 Weekly  | Spending summaries |
| 📆 Monthly | Financial reports  |
| 📋 Annual  | Full audits        |

***

### Multi-sig Backup

For emergencies, a multi-sig can:

* ⏸️ Pause operations
* 🚨 Emergency transfers (with timelock)
* 🔧 Upgrade contracts (with governance)

Multi-sig **cannot**:

* ❌ Bypass safety rails
* ❌ Withdraw without governance
* ❌ Modify limits directly
  {% endtab %}
  {% endtabs %}

***

<details>

<summary>🔍 Checking Availability</summary>

### Current Limits

```javascript
const available = await treasury.getAvailableToWithdraw();
// Returns max withdrawable given current limits
```

### Specific Checks

```javascript
const totalValue = await treasury.getTotalValue();
const dailyUsed = await treasury.dailyWithdrawals();
const monthlyUsed = await treasury.monthlyWithdrawals();
```

</details>

***

<details>

<summary>💡 Best Practices</summary>

### For Proposers

| Practice                         | Reasoning          |
| -------------------------------- | ------------------ |
| 🔍 Check available limits first  | Know constraints   |
| 📉 Don't request maximum         | Leave buffer       |
| 📝 Provide clear justification   | Build support      |
| ✅ Include recipient verification | Ensure correctness |
| 📊 Allow buffer for fluctuation  | Market changes     |

### For Voters

| Practice                        | Reasoning          |
| ------------------------------- | ------------------ |
| ✅ Verify recipient legitimacy   | Prevent fraud      |
| 💰 Confirm amount is reasonable | Protect treasury   |
| 🎯 Check alignment with mission | Stay focused       |
| 📊 Consider treasury health     | Long-term thinking |
| 📜 Review spending history      | Context matters    |

</details>

***

{% hint style="success" %}

## 🔗 Learn More

* 🔄 [Governance Overview](/governance/how-it-works.md) — How decisions are made
* 🛡️ [Safety Rails](/governance/safety-rails.md) — Detailed limit explanation
* 📝 [Proposals](/governance/proposals.md) — Creating withdrawal proposals
  {% endhint %}

***

## 🔗 Related Pages

{% content-ref url="/pages/iFjSAwz3u8wMy4SX4jVz" %}
[How Governance Works](/governance/how-it-works.md)
{% endcontent-ref %}

{% content-ref url="/pages/hZilKDfriFzMvyBGHsW1" %}
[Safety Rails](/governance/safety-rails.md)
{% endcontent-ref %}

{% content-ref url="/pages/TR3xvCAhUfG2XtqqVRHU" %}
[Proposals](/governance/proposals.md)
{% endcontent-ref %}

{% content-ref url="/pages/SS8wIERv7K8t3TYmBbhQ" %}
[Overview](/governance/governance.md)
{% endcontent-ref %}


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