TIP-51: Proposal of a USDC Liquidation Reserve Fund

Summary This proposal recommends setting aside $100,000 USDC from the DAO’s treasury as a designated liquidation reserve fund, to be used only in the event of a formal business wind-down of the Treasure DAO core operations. The fund would serve as a financial safety net to cover essential obligations (e.g., legal, regulatory, offboarding costs, severance, wind-down coordination) in the unlikely event of DAO closure.

These funds will be held in a gnosis safe on Ethereum mainnet and not deployed or accessed without explicit DAO governance approval, unless for its intended purpose, to wind down Treasure DAO operations.

Motivation While Treasure DAO continues to operate with long-term vision and momentum, it is fiscally responsible to prepare for all outcomes — including the potential need to wind down. This measure ensures the DAO is prepared to:

• Handle obligations ethically and professionally
• Protect contributors and stakeholders
• Avoid scrambling for liquidity in a worst-case scenario
• Maintain operational discipline and foresight

Fund Details Amount: $100,000 USDC

Source: Existing stablecoin holdings within the DAO Treasury

Destination Wallet: eth:0xCE4cc1771Ccdb96EfCe6678066d887E421B6dDb9 (Maintained on Ethereum mainnet)

Control: The wallet is governed by a multisig operated by the Treasure core team. Funds may only be accessed through a separate DAO-approved proposal authorizing their use.

Use of Funds (if triggered) If a formal wind-down is ever proposed and approved, these funds may be used for:

• Legal, accounting, or regulatory obligations
• Final contract settlements
• Shutdown costs for infrastructure, tooling, or third-party services
• Communication and transparency obligations during closure
• Archiving and preservation of DAO materials

Safeguards No Use Without Governance: Funds cannot be accessed or repurposed without an explicit DAO vote

Transparency: The wallet address is public and holdings can be verified on-chain

Adjustable in the Future: The DAO may revisit this policy or amount via future proposals

Execution Plan Proposal Approval DAO passes this proposal via Snapshot vote.

Fund Transfer $100,000 USDC is transferred from the DAO treasury to eth:0xCE4cc1771Ccdb96EfCe6678066d887E421B6dDb9

Ongoing Reporting The Liquidation Reserve will be reflected in all future DAO treasury reports and available for verification via on-chain explorers.

Conclusion By setting aside a modest but sufficient liquidation reserve, Treasure DAO ensures it is equipped to handle any scenario should a full wind-down occour.

Voting Options

• Yes – Approve the allocation of $100,000 USDC to a designated liquidation reserve wallet, to be held and only accessed by DAO vote.
• No – Do not allocate these funds to a liquidation reserve at this time.

Addendum: As of voting, the DAO's stablecoin runway has extended into 2026 thanks to recent restructuring. This proposal does not relate to an immediate need of the organization but rather establishing best practices to guide the DAO into the indefinite future.