Proposal: Multisig For DAO Treasury

Background

For those that haven’t seen we have recently voted and unlocked 21M PERP in order to accelerate growth and hit the target of 300M average daily trading volume (Proposal: Unlocking Perp Tokens for Growth - #23)

In order to maintain transparency as well as accountability we created a bounty for a member of the community to track the spend and report on it back to the community (Treasury Reporting (Ongoing) · Issue #5 · perpetual-protocol/perp-bounties · GitHub).

Now that we have the tokens unlocked and the reporting in place the next question we need to tackle is operationally how we should release the tokens!

Proposal

I’m proposing that we have the following structure:

  1. Treasury DAO which holds majority of the funds is a multi-sig
  2. The multisig then signs and sends into various other EOA (externally owned account) wallets in batches which then allows individuals to spend accordingly

Multisig

For the multisig I’m thinking we hold some form of election to vote everyone on. Would be great to source maybe a list of 10-20 that we can vote on here.

Items for discussion

There’s a couple of items that are still a bit fuzzy that probably needs a bit more thought from the community, namely:

  • How do we vote people out of the multi-sig (if we need to?)
  • How many people do we want in the multisig (n of m, what should n and m be?)
  • Do we need a vote everytime to replenish the EOA wallets or not? Requiring a vote might slow things down but may be easier for multisig holders to reference a snapshot and vote accordingly
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Do you have any information about the multi-sig set-ups of other projects (i.e. Sushiswap, etc). This is something that has been done quite a few times now (I think) for DAOs and we don’t have to innovate.

What do you mean by “replenish the EOA wallets”?

Replenish the EOA was a suggestion I think from @Snowsledge in Discord, where to stay nimble they have an individual still able to quickly distribute small amounts of funds but for larger ones keep it to the multisig.

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Some of my personal opinions:

  • Signal vote on CT for 1 week to find the eligible candidates (9-12 as target), before formal vote on Snapshot which last for 1 week. Each eligible candidate will have one proposal attached to him/here, with a clear YES/NO vote option. Set a quorum % (10% of circulating supply of PERP voting?), and we can proceed. If quorum is reached and YES > NO by end date, candidate is voted in.
  • 12 maximum for M, and 9 as minimum. N should be 9 imo. 3 keys held by the core team, 9 held by community members.
  • I think a vote should be held every time a replenishment of EOA is required, for accountability. For flexibility, the EOA held by the team can hold up to $3mil (worth of PERP) at anytime to be more flexible with bounty payments or misc marketing expenses. As for big partnerships expenses, those can come out from the multi-sig directly after a vote.