Treasury Management on Ink Finance
A One-stop solution for secure & comprehensive fiscal management
From January 2022, Decentralized Autonomous Organizations (DAOs) have seen assets in their treasuries increase by 7.6%, reaching up to $10 billion for the first time in October. This is an obvious sign that a secure and efficient treasury management system is one of the most critical aspects of a DAO’s operation, as shown in its increased demand. Though a robust treasury is simple enough to ask for, it isn’t easy to package it all into one management structure because comprehensive treasuries involve multiple independent functional components from managing treasury assets, revenue, payroll distribution, investment, and other fiscal duties on-chain.
Ink Finance’s all-in-one DAO infrastructure does just that! It encompasses and integrates DAO creation, treasury operations, investment & funding, and community economy.
INK’s no-code easy-to-use web app provides organizations with an easy way to set up & elegant DAO governance solutions to manage complex treasuries. Communities or corporations simply plugin their registration and, with just a few clicks, are up and running as Web3 decentralized autonomous organizations. Every function can be picked off the shelf, customized, and seamlessly integrated into an overall governance framework.
The following diagrams will focus on INK’s Treasury Management functionalities.
Treasury Management on Ink Finance
Ink Finance’s Treasury Management is a one-stop comprehensive treasury solution providing DAOs with manager identity verification, multi-asset treasury vault, payment, transfer control, income, revenue audit, & more.
Ⅰ. Setting up the Treasury (plug-and-play)
Treasury Management functionalities are a “pluggable” top-level suite that can be picked off the shelf, customized, and integrated by a DAO board member.
A DAO board member can propose to appoint any verified manager wallet to the Treasury Committee and assign them different responsibilities and operational privileges. DAO treasury managers and the roles assigned to them are voted into position through INK’s proposing process. Once the DAO has reached a post-vote resolution, Ink Finance will execute the resolution on-chain & create a multi-asset treasury vault controlled by approved managers.
Ⅱ. The Secure and Multi-Asset Treasury Vault
Ink Finance is a smart-contract factory for DAOs. INK holds no operational authority over these smart contracts. The Treasury Manager roles, the process through which these roles are created, and the smart contracts tied to DAO-voted resolutions guarantee security & autonomy. Any subsequent treasury vault operations, like transaction setup, signing, etc., must be verified by one of these vault-controlling smart contracts tied to the resolution executed on-chain.
The treasury vault is a Universal Custodian Vault or UCV. It supports any blockchain asset, especially InkEnvelope-wrapped assets. INK highlights InkEnvelopes because they are instrumental to DAO asset acquisition, especially if your DAO’s assets are on multiple blockchain networks or off-chain. When cross-chain technology isn’t available, or if the assets you own are not on-chain (like in the various gaming or Metaverse ecosystems). Treasury managers can rely on INK’s asset wrapping facility (InkEnvelopes) to wrap, import, and deposit any asset into the DAO treasury vault.
Ⅲ. The Integrity of the Treasury Manager
Treasury managers on the Ink Finance platform are treated like any other DAO manager. They must have at least one type of identity verification connected to their wallets. It is entirely up to the DAO to decide what and how many identity verifications are required.
Ink Finance provides the following options for identity verification:
- INK social media verification
- Humanode biometric verification
- Astra regulatory compliance verification
A Treasury Manager can play any one of four roles, each having different responsibilities and privileges:
- Treasury Operators are responsible for setting up asset transfers or payments;
- Treasury Signers are responsible for multi-signing transactions set up by the Treasury Operators;
- Treasury Auditors are responsible for auditing the treasury’s revenue and capital management;
- Treasury Investment Managers are responsible for making investment decisions on behalf of the treasury.
IV. Treasury Operations
- Initiation of Payments & Transfers
Only Treasury Operators perform these tasks:
- Periodic Payrolls
Multiple recurring payroll schedules can be set up, each with their respective pay periods, payee addresses, currencies, and amounts. These setups will trigger periodic pay instructions signed off by the Treasury Signers.
- One-off Payments
Non-recurring payments can be set up as frequently as desired. The facility supports uploading batch payment files, which can later be signed in batch by the Treasury Signers. It provides a very convenient way to conduct community airdrops or reward members for any off-chain activity.
- Direct Payments between Vaults
Another form of non-recurring payment can happen between two organizations, such as a Meta DAO and one of its sub-DAOs, or between an investment DAO and a Metaverse DAO. In these cases, the payee address must be another UCV. Once signed off by the Treasury Signers, funds or assets will be directly sent to the receiving vault address.
2. Signing off Payments and Transfers
Only Treasury Signers can sign off on payments or transfers. For periodic payrolls, the signer signs for each period of a particular schedule; for one-off payments, they sign per request. Once signed off, the payees collect periodic payments and one-off payments. Vault-to-vault payments are sent once the last signer has signed off.
3. Income & Revenue Audit
Many blockchain organizations have chaotic and opaque income and revenue treasury management systems. Ink Finance allows the Board of a DAO to specify which critical income and revenue categories can be audited. When asset injections are made, depositors can go through a treasury function under a pre-defined category, and Treasury Auditors can perform on-chain audits in every category.
4. Treasury Information
At any time, DAO members, contributors, and investors can check their treasury’s balance, see what’s happening in their DAO’s ecosystem, and gauge metrics to help ensure financial health. This includes but is not limited to its current balance in the treasury. All outgoing expenditures can be tracked and viewed through Payment History, and all the incoming transactions can be viewed via the audit reports.
Our motto: Finance is built on credit, and credit is competence. Let the Web3 world see your DAO’s competence and reputation on-chain!
Learn more and experience Ink Finance DAO’s Treasury:https://ink-finance.gitbook.io/ink-finance-guide/
About Ink Finance
Ink Finance is a one-stop financial management toolset that empowers DAOs with governance economy, asset or credit financing, investment management, and fiscal control, integrated via a plug-and-play framework. It aims to establish a gold standard for DAO financial management that can reshape financial organizations of the Web3 era.
Learn more about Ink Finance and what we’re building:
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