The role of the treasury galaxy is to ensure that the DAO maintains a sufficient cash flow and proper risk allocation to ensure the long-term health of BAO Finance.
The galaxy will be tasked with the following responsibilities:
- Consolidating and centralizing liquidity from all revenue sources and franchises.
- Create and maintain proper risk management strategies to manage excess treasury funds.
- Maintain sufficient levels of short-term liquidity to cover the operating expenses of the DAO.
- Facilitate the payment of grants, salaries, bounties, and operating expenses.
- Create projections to forecast cash flows and treasury balances.
- Provide the DAO with pay scales for the onboarding of new guardians that are in line with similar pay scales across the broad Defi ecosystem.
- Publish quarterly/annual summary reports
Instead of voting on each spend individually, an internal budget will be planned to be approved by the multisig. This budget must be approved by one member of each galaxy and is authorized to be a maximum of 1/3rd of treasury assets annually, ensuring that Bao’s protocol always has three years of runway.
Any spending that moves beyond this maximum would need a snapshot vote for approval.
Other treasury operations such as rebalancing will only require the sign off of galaxy representatives in the multisig.
The treasury may make use of any asset allocation but it will forever be prohibited from perpetuals, futures or options unless it is farming rewards on those in a neutral strategy. This section may not be overturned by future voting in order to keep secure the longer term health of the treasury.
Multisig shall create any official votes using Snapshot.
Each Galaxy maintains an operating budget to reward contributors and pay their operating costs. This also allows galaxy guardians to take initiatives that require small costs but provide value to the DAO.
Operating budgets are additive. This means that if the monthly allocation is not spent, the remaining balance will roll over to the new allocation. However, the operating budget accumulated shall not be allowed to exceed three times the monthly budget. New funds will halt until the budget is being spent again.
The wallet of each Galaxy will be public and controlled by a multisig composed of the Guardians of that Galaxy and at least one Guardian of another Galaxy. Members of the DAO will be able to see the expenses and balance of each Galaxy directly on the chain.
Each Galaxy is responsible for reporting its revenues and expenses to the DAO on a monthly or quarterly basis, whichever the galaxy sees fit.
A galaxy’s monthly allocation will not be adjusted without a vote from the DAO.
- Maintainer Galaxy (5k)
- Community Galaxy (2.5k)
- Front-End Galaxy (2.5k)
- Smart Contract Galaxy (5k)
- Quality Assurance Galaxy (1k)
- Art Galaxy (1k)
- Treasury Galaxy (2k)