Hello all. 👋🏿
I am wondering whether there are any guidelines on DOs and DON’Ts regarding the use of Treasury funds by recipients when these are registered as an on-chain entity which is (but not limited to) an organisation, a team, a collective, a 2+person project.
Specifically, I would like to know whether a collective/team/project that received Treasury funds can use these to partake in:
- Staking (including liquid staking)
- DeFi (including Liquidity Provision)
- Democracy (including delegation)
- Crowdloaning (including auctions)
From my perspective, when submitting their proposals, projects request funds that are needed to complete specific milestones. Making use of these funds towards different ends would be, in my view, not only a very risky endeavour that could jeopardise the project’s progress, but it would also create a lot of confusion in the context of Gov 2.0 re: which exact individuals are behind a vote/delegation.
While I do not advocate for a tight moderation on the use of Treasury funds by projects/teams/collectives, I do think that transparency re: bookkeeping entries should become an important part of the reporting process. Afterall, if proponents can take the time to itemise the monies that they need by the hour, they shouldn’t have much trouble detailing how that money was spent at the end of the day, so that the general public can be kept in the loop.
I’m curious to hear from your views on this matter.
Thanks! 🙏🏿