> For the complete documentation index, see [llms.txt](https://basin-dao.gitbook.io/basinfinance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://basin-dao.gitbook.io/basinfinance/basin-dao/treasury.md).

# Treasury

## Purpose

The role of the treasury is to ensure that the DAO maintains a sufficient cash flow and proper risk allocation to ensure the long-term health of Basin Finance. 

These are the following responsibilities of DAO treasury:

* Consolidating and centralizing liquidity from all revenue sources and franchises.
* Create and maintain proper risk management strategies to manage excess treasury funds.
* Maintain sufficient levels of short-term liquidity to cover the operating expenses of the DAO.
* Facilitate the payment of grants, salaries, bounties, and operating expenses.
* Create projections to forecast cash flows and treasury balances.
* Provide the DAO with pay scales for the onboarding of new contributors that are in line with similar pay scales across the broad DeFi ecosystem.
* Publish quarterly/annual summary reports

## Framework

Instead of voting on each spend individually, an internal budget will be planned to be approved by the multisig. This budget must be approved by a majority of OGs and is authorized to be a maximum of 1/3rd of treasury assets annually, ensuring that Basin's protocol always has three years of runway.

Any spending that moves beyond this maximum would need a snapshot vote for approval.

Other treasury operations such as rebalancing will only require the sign off of team representatives in the multisig. 

The treasury may make use of any asset allocation but it will forever be prohibited from perpetuals, futures or options unless it is farming rewards on those in a neutral strategy. This section may not be overturned by future voting in order to keep secure the longer term health of the treasury. 

Multisig shall create any official votes using Snapshot.

## The treasury vault

<table data-header-hidden><thead><tr><th width="150"></th><th></th></tr></thead><tbody><tr><td><strong>Address</strong></td><td>TBD</td></tr><tr><td><strong>Purpose</strong></td><td>Basin Finance Treasury</td></tr><tr><td><strong>Signers</strong></td><td><ul><li>Forgiving</li><li>S10</li><li>Kururu</li></ul><p>(more members TBD)</p></td></tr><tr><td><strong>Signatures Required</strong></td><td>3/3</td></tr></tbody></table>