Treasury Management with Ink Finance
The Strategic Approach for Modern Financial Efficiency in Web3
Decentralized Autonomous Organizations (DAOs) and Web3 protocols have seen significant growth in their treasuries since the last super cycle bull run, reflecting the crucial need for secure and efficient treasury management systems. This trend underscores the increasing demand for comprehensive solutions that address the multifaceted nature of treasury management, including asset handling, revenue management, payroll distribution, investment strategies, and other fiscal duties on-chain.
Ink Finance provides a holistic solution with its all-in-one infrastructure tailored for DAOs and Web3 protocols. This platform seamlessly integrates functionalities such as DAO creation, treasury operations, investment and funding management, and community economic governance.
INK’s no-code, user-friendly web application enables organizations to implement sophisticated governance solutions with ease. Whether for communities or web3 protocols & businesses, the platform facilitates a swift transition into decentralized structures. With a few simple steps, administrators and treasury managers can register and configure a wide array of customizable functions, integrating them into a comprehensive governance framework.
Below, we depict INK’s Treasury Management functionalities, highlighting its ability to streamline and enhance the operations of DAOs and Web3 protocols.
Treasury Management with Ink Finance
Ink Finance offers a comprehensive, all-encompassing treasury management solution tailored for DAOs & protocols, featuring capabilities such as manager identity verification, multi-asset treasury vaults, payment and transfer control, income and revenue audits, and more.
Setting up a treasury via plug-and-play modules on Ink Finance
The Treasury Management functionalities are a versatile, top-level suite that can be effortlessly customized and integrated by treasury management or board members. A board member can propose the appointment of any verified manager wallet to the Treasury Committee, assigning them various responsibilities and operational privileges. Through INK’s proposal process, governance token holders can also vote to confirm treasury managers and their assigned roles. Upon reaching a post-vote resolution, Ink Finance’s factory executes the resolution on-chain, creating a multi-asset treasury vault governed by the approved managers.
A secure and multi-asset treasury vault
As a smart-contract factory, Ink Finance holds no operational authority over these smart contracts. The establishment of Treasury Manager roles, their associated creation process, and the smart contracts linked to governance-voted resolutions ensure both security and autonomy. Any subsequent treasury vault operations, such as transaction setups and approvals, must be verified through these vault-controlling smart contracts.
The treasury vault, known as a Universal Custodian Vault (UCV), supports any blockchain asset, particularly InkEnvelope-wrapped assets. InkEnvelopes are pivotal for treasuries managing assets across multiple blockchain networks or off-chain environments, such as RWAs, gaming or Metaverse ecosystems. In scenarios where cross-chain technology is unavailable or assets are off-chain, treasury managers can use INK’s asset wrapping facility (InkEnvelopes) to wrap, import, and deposit any asset into the DAO treasury vault — all done with the proof of underlying assets and a true reflection of inherited value.
Treasury Management and Protocol Integrity
On the Ink Finance platform, treasury managers are subject to the same identity verification standards as other protocol c-suite operators or managers. Each treasury determines the type and number of identity verifications required for its managers. Ink Finance offers several options for identity verification:
- Social media bound verification
- Humanode biometric verification (KYC)
- Astra regulatory compliance verification (KYC)
A Treasury Manager can assume one of four roles, each with distinct responsibilities and privileges:
- Treasury Operators: Responsible for setting up asset transfers or payments.
- Treasury Signers: Responsible for multi-signing transactions set up by Treasury Operators (multi-sig functionality).
- Treasury Auditors: Responsible for auditing the treasury’s revenue and capital management.
- Treasury Investment Managers: Responsible for making investment decisions on behalf of the treasury.
Ink Finance’s sophisticated treasury management system ensures that DAOs can operate with enhanced security, autonomy, and efficiency.
Treasury Financial Operations
Initiation of Payments & Transfers
Only Treasury Operators perform these tasks:
Periodic Payrolls
Multiple recurring payroll schedules can be established, each with specific pay periods, payee addresses, currencies, and amounts. These configurations will automatically generate periodic payment instructions that must be authorized by the Treasury Signers. This functionality can also be utilized to distribute rewards to governance token holders.
One-off Payments
Non-recurring payments can be scheduled as often as needed. This feature supports the uploading of batch payment files, which can subsequently be signed in bulk by the Treasury Signers. It offers a highly convenient method for conducting community airdrops or rewarding members for various off-chain activities.
Direct Payments between Vaults
Another type of non-recurring payment can occur between two organizations, such as a Meta DAO and one of its sub-DAOs, commonly seen in gaming or Metaverse applications, or between an investment fund and a protocol, prevalent among RWA originators, hedge funds, and venture capital firms. In these scenarios, the payee address must be another Universal Custodian Vault (UCV). Once authorized by the Treasury Signers, the funds or assets are directly transferred to the recipient vault address.
Authorizing Payments and Transfers
Only Treasury Signers have the authority to approve payments or transfers. For periodic payrolls, the signer authorizes each period of a given schedule; for one-off payments, they approve each individual request.
Once authorization is complete, payees receive their periodic or one-off payments. Vault-to-vault payments are executed upon the final signer’s approval.
Income & Revenue Auditing
Blockchain organizations often suffer from chaotic and opaque income and revenue management systems. Ink Finance addresses this issue by allowing a treasury’s Board to designate specific critical income and revenue categories for auditing. When asset injections occur, depositors utilize a treasury function categorized under a pre-defined classification, enabling Treasury Auditors to perform comprehensive on-chain audits for each category.
Treasury Information
DAO members, contributors, and protocol investors can access real-time information about their treasury’s balance and activities within their DAO’s ecosystem. This includes, but is not limited to, the current treasury balance.
All outgoing expenditures are trackable and viewable through the payment history dashboard, while all incoming transactions can be reviewed via audit reports. This transparency helps ensure the treasury’s financial health by providing key metrics and insights.
Conclusively, Ink Finance offers an unparalleled treasury management solution for DAOs and web3 protocols, ensuring secure, efficient, and transparent financial operations. With its robust features, including the ability to set up recurring and non-recurring payments, authorize payments through Treasury Signers, and perform detailed income and revenue audits, Ink Finance addresses the complex needs of modern blockchain organizations.
Furthermore, our platform provides comprehensive real-time treasury information, enabling DAO members, contributors, token holders and investors to monitor financial health and make informed decisions. By integrating these sophisticated tools, Ink Finance empowers organizations to manage their assets with confidence and precision, fostering a more transparent and accountable blockchain ecosystem.
About Ink Finance
Ink Finance is the only DeFi engine for DAOs, web3 protocols & systematic on-chain financial management. Ink Finance enables organizations to build effective operation structures and perform best-practice financial management on-chain, focusing on transparency, flexibility, and credit-based DeFi.
Leveraging unmatched customizability, Ink Finance’s platform offers versatile governance modules, integrated risk control, compliance, & integrated workflows.
Ink Finance is led by a perfect blend of veterans in traditional and corporate finance, FinTech, and blockchain.
Finance is built on credit, and credit comes from competence.
