PDP-14: PsyDAO PSY Treasury Allocation

Summary

This proposal seeks approval to move PSY tokens from the main PsyDAO treasury to the respective working group multisig wallets, ensuring that each working group has the necessary funds to compensate contributors and sustain operations. The allocation is based on available PSY tokens, divided using RX-PI ratios, and then further divided by 4 to retain a substantial PSY reserve in the main treasury for liquidity pool provisioning and future strategic uses.

This move will allow decentralized financial control by the relevant teams while ensuring transparency and accountability in the use of PsyDAO’s resources.

Background

Treasury Structure from the PsyDAO Whitepaper

According to the PsyDAO Whitepaper, the total PSY supply is 102,334,155 PSY, which is allocated as follows ​psydao-whitepaper:

• 20% was sold in the genesis token sale
• 6.9% allocated to bio.xyz under the incubator/accelerator program
• 3% allocated to Molecule for capital and labor
• 2% allocated to Pretopia for capital and labor
• 29% reserved for PSYC rewards (29,676,905 PSY)
• 39.1% allocated to the PsyDAO Treasury (40,012,654 PSY)

The total allocation for PSYC rewards and the treasury is 69,689,560 PSY, forming the primary pool for contributor compensation and DAO operations.

Current Treasury Status

After initial distributions and expenditures, the current status of the PsyDAO treasury is as follows:

| Category | PSY Amount | | --- | --- | | Total PSY in Treasury | 64,250,311 | | Total PSY Spent | 5,439,249 | | Spent on PSYC rewards so far | 3,837,530.80 | | Spent on Contributions & Liquidity Pools | 1,601,718 | | Reserved for Retroactive PSY Proposal | 3,000,000 | | Available Treasury Funds | 35,410,936 |

To ensure responsible fund management, this proposal allocates PSY to working group multisigs while retaining a significant reserve in the main treasury for future liquidity and governance decisions.

Proposal: PSY Allocation to Working Group Treasuries

To ensure efficient contributor compensation and operations, we propose allocating PSY from the treasury to designated working group multisig wallets. The allocation is based on RX-PI ratios, ensuring proportional distribution aligned with PsyDAO’s priorities.

Total PSY Used for Allocation Calculations

The total PSY available for allocation is 35,410,936 PSY. To maintain a strong liquidity reserve, we divide the RX-PI allocation by 4, ensuring that a portion remains in the treasury for future strategic use.

RX-PI-Based PSY Allocation Breakdown

| Working Group | RX-PI Percentage | RX-PI Adjusted Allocation | Final Allocation (Divided by 4) | | --- | --- | --- | --- | | Science Working Group | 40.0% | 14,164,374 PSY | 3,541,094 PSY | | Operations Treasury | 15.0% | 5,311,640 PSY | 1,327,910 PSY | | Community Engagement | 10.0% | 3,541,094 PSY | 885,273 PSY | | Art Fund | 5.0% | 1,770,547 PSY | 442,637 PSY | | Development Fund | 25.0% | 8,852,733 PSY | 2,213,183 PSY |

Total PSY Allocated: 8,410,097 PSY**
PSY Remaining in Main Treasury:** 26,000,839 PSY

This approach ensures that:

• Working groups receive sufficient PSY to execute their functions effectively
• The main treasury retains liquidity for long-term strategic initiatives

Fund Descriptions and Use Cases

Fund Descriptions and Use Cases

• Science Working Group (3,541,094 PSY) → Research funding, expert reviews, and contributor payments.
• Operations Treasury (1,327,910 PSY) → Governance, administration, and legal compliance.
• Community Engagement (885,273 PSY) → Events, outreach, and education initiatives.
• Art Fund (442,637 PSY) → Psychedelic art funding, NFT collaborations, and indigenous art acquisition.
• Development Fund (2,213,183 PSY) → DAO infrastructure, governance tooling, and Web3 development.

Governance and Control

• PSY tokens will be moved from the main treasury to the designated multisig wallets, controlled by working group stewards.
• Treasury stewards are responsible for fund oversight and reporting.
• Quarterly transparency reports will be required, detailing fund disbursements and impact.
• Unused PSY may be reallocated if needed, subject to DAO governance.
• If a working group misuses its PSY allocation, a governance vote may revoke funds or reassign treasury control.

Implementation

If this proposal passes:

1. PSY tokens will be transferred from the main treasury to the designated working group multisigs.
2. Working group stewards will manage and disburse funds based on pre-approved budgets.
3. Governance oversight will be enforced, with periodic reports to the DAO.