Owner: CrownThrive, LLC Date: 2025-08-08 Classification: Internal — DAO Smart Treasury Governance & Execution Framework
1. Purpose & Scope
This document defines the Smart Treasury architecture, execution logic, and governance workflows for the CHLOM Global DAO in Phase 4. The Smart Treasury leverages programmable, on-chain automation to dynamically manage funds, enforce compliance, and optimize capital deployment, preparing for full autonomy in Phase 5.
Goals:
- Implement self-adjusting treasury parameters driven by DAO-approved policies.
- Enable real-time liquidity optimization while preserving long-term reserves.
- Provide deterministic, audit-friendly disbursement and investment logic.
- Integrate compliance, fraud prevention, and licensing verification at the transaction layer.
2. Treasury Structure
- Primary Treasury Vault (Smart Vault)
- Reserve Fund (Locked)
- Operational Liquidity Pools
- Investment Engine
3. Fund Sources
- Protocol Revenue: Fees from licensing, compliance scoring, ZK verification.
- DAO Minting Mechanism: Controlled CHM token issuance.
- External Capital: Grants, VC partnerships, philanthropic contributions.
- Yield Streams: On-chain investment income and staking rewards.
4. Smart Allocation Process
- Proposal-Driven Funding:
- Dynamic Rebalancing:
- Milestone-Based Disbursement:
5. Security & Compliance Controls
- Multi-Signature Thresholds: 5-of-9 for major withdrawals; 3-of-5 for operational spending.
- CaaS API Hooks: Automated compliance scans pre-transaction.
- ZKP-Verified Eligibility: Recipient verification without exposing private data.
- Spending Caps & Circuit Breakers: Automated halt triggers on anomalous patterns.
6. Auditing & Transparency
- On-Chain Dashboard: Displays current balances, inflows/outflows, and reserve levels.
- Automated Audit Reports: Generated monthly with Merkle proofs of holdings.
- Immutable Logs: Recorded on CHLOM audit chain with cross-chain notarization.
7. Integration with DAO Governance Modules
- Proposal Engine: Links treasury actions directly to governance votes.
- Compliance Layer: Enforces legal/licensing adherence at fund level.
- Analytics Module: Generates predictive financial modeling.
8. Phase 4 → Phase 5 Smart Transition Path
- Phase 4: Smart Treasury operates in semi-autonomous mode with DAO oversight.
- Phase 5: Fully autonomous treasury with self-governing allocation parameters, modifiable only via DAO on-chain voting.
Summary: The Phase 4 Smart Treasury framework combines automation, compliance, and governance to create a programmable, self-optimizing capital engine for CHLOM Global DAO, setting the stage for a fully autonomous financial core in Phase 5.