PIP-69 - Velora Treasury Management

Governance Proposals
1

PIP-69 - Velora Treasury Management

Abstract

Given the current stage of the DAO, which is experiencing a process of revitalized activity and the incorporation of professional contributors across various areas and the current challenging situation of the crypto market, we believe that it is the right time to address a topic that we consider a priority as it is to have a team dedicated to the management of the DAO treasury, in order to professionally propose measures to rebalance its portfolio and generate income with the ultimate goal of making the treasury stronger and more resilient in the medium and long term.

Goals & Review

Introduction

The Driving Protocol Success through Optimized Governance post outlined the view that, once conditions were favorable and community participation sufficient, it would be necessary to introduce a series of gradual proposals for discussion and implementation, among them, the establishment of a treasury management function.

We believe that the current conditions are in place and it is time for the DAO to focus on this.

Currently the DAO main multisig wallet has almost 165.3M PSP, 12.5ETH, and almost 300k USDC. Likewise in the Ethereum Mainnet Fee Claimer wallet has almost 1.1M PSP and 12.5 ETH. In the different Fee Claimer wallets of the different chains it there are also different funds dispersed, such as 3.5 ETH in Avalanche, 12.7 ETH in BNB Chain, 6.18 ETH and 39k FTM in Fantom, 3.8 ETH and 14.5k OP in Optimism, 4.8 ETH in Polygon, etc. and a lot of dust in the different chains. You can check all the funds in the different DAO wallets and in this portfolio tracker.

In addition, the DAO currently receives regular income from the PSP 2.0 fees distribution system established in PSP-IPΔ22: PSP 2.0 whereby 20% of the fees collected by ParaSwap in each epoch are destined to the DAO.

These holdings and regular incomes, as well as the sophistication of the crypto market, require a professional team with the necessary skills to efficiently manage the treasury, diversify it and invest it to generate income, all with the main objective of making the DAO and its treasury sustainable in the mid and long term.

Velora Treasury Manager (VTM)

To this end, we propose establishing the role of Velora DAO’s Treasury Manager, who will carry out their tasks and responsibilities within the following framework.

Scopes and Mandates

The Velora Treasury Manager (VTM) will be responsible for:

  • Manage the DAO’s treasury.
  • Monitor income and expenses on a regular basis to ensure a healthy balance is maintained, and if an imbalance is detected that could pose a risk in the short, medium, or long term, the community will be alerted, and a corrective strategy will be developed in order to restore that balance.
  • Develop strategies to preserve and grow the DAO treasury.
  • Develop strategies to manage treasury PSP/New token, either through diversification into stablecoins and/or others volatile tokens, investments in DeFi products to generate yields, or other strategies to be developed.
  • Develop strategies to manage treasury ETH, either by investing it in DeFi products to generate yields, or other strategies to be developed.
  • Develop strategies to manage volatile treasury tokens, either by converting them to ETH, stablecoins and/or other quality tokens, or other strategies to be developed.
  • In general, identify and develop suitable strategies to activate, optimize and efficiency the DAO treasury assets, ensuring financial health and sustainability, mitigate volatility, risk diversification and security, and increase in the treasury’s incomes and generation of yield with the lowest possible risk.

Additional non-mandatory scopes

The above list is neither limiting nor exclusive, and VTM may also address the following additional scopes:

  • Develop strategies to strengthen the PSP’s - or the future new token it may migrate to in accordance with Project Miro - value and utility.
  • Develop strategies to maintain and grow Velora’s liquidity and user base.
  • Develop strategies to increase long term stakers.
  • Analyze the current PSP 2.0 fee distribution system established in PSP-IPΔ22: PSP 2.0 to assess and propose whether modifications and improvements are necessary.
  • Analyze the protocol’s current sePSP2 staking system to assess and propose whether modifications and improvements are necessary.

Compliance & Legal Considerations

The VTM must ensure that strategies and implementations plans adheres to the legal and regulatory requirements.

Advisory seat on DAO structures

Given the importance of budgetary matters and the potential impact on DAO funds, the VTM may have an advisory seat on the committees, working groups and generally on any collegiate structure of the DAO, which shall be decided at the time such structures are created. In this case, the VTM role will provide ongoing analysis, evaluation and strategic advice on the health of the treasury in relation to all decisions involving the allocation of funds.

If such advisory role is assigned, the VTM will not receive additional compensation or be compensated as a member of the DAO structures it advises, unless, beyond its role as VTM, it actively contributes to the specific scope of that structure in its own capacity.

Decisions

The VTM will be responsible for carrying out actions related to the regular and day-to-day management of the treasury. However, any decision that involves implementing, executing and/or changing in management strategies, significant fund movements, operations that entail risks, or, more broadly, any decision that may have an impact on the treasury must be proposed and receive prior approval through a DAO vote.

Likewise, any strategy involving the use of external protocols or platforms—whether for yield generation, treasury management, or other purposes—must also be proposed and submitted for DAO approval. Such proposals must include a clear justification for the selection of the specific protocol or platform over other alternatives, and the DAO may suggest replacing the proposed protocol or platform with a different one.

DAO asset integrity

No DAO assets will be transferred directly or indirectly to third parties and the ultimate custody of funds must remain with the DAO, so if, for the execution of actions or strategies related to treasury management, the VTM needs to use multisig wallets, it must be ensured that the DAO—whether through Laita representatives, other DAO service providers, its delegates and/or other designated community signers—retains the ability to withdraw and move treasury assets without any permission whenever it deems necessary.

Deliverables and commitment

The VTM must provide the DAO with detailed quarterly performance reports, which should include:

  • The current status of the DAO treasury and its assets.
  • The treasury management strategies implemented during the period, along with their results, performance and risk exposure.
  • An assessment of whether any new measures or strategies should be taken in the future to improve the treasury’s position.

In addition to these quarterly reports, the VTM must also be available to address any interim questions the community deems appropriate.

Composition

The VTM will be composed of a single member, which may be either an individual or an organization.

For its initial composition, and to avoid the onboarding process of an external person or entity, it is proposed that the role of VTM be held by @Avantgarde who not only has a deep knowledge of the protocol, but brings the required experience, skills, and a strong track record in supporting the Velora DAO’s treasury initiatives and as well as having shared with us some drafts on issues that will be the scope of the VTM.

Term Duration

The VTM’s mandate will have an initial duration of 12-month term, starting September 1, 2025 and ending August 31, 2026, and and after that it may be renewed for successive terms of the same length.

The DAO votes on whether to renew, modify, or replace the VTM structure.

Renewal and Replacement Process

1. Renewal: Upon completion of the 12-month term following the approval of this proposal, the DAO shall vote to determine whether or not to renew the VTM’s mandate for an additional 12-month period. This process must be repeated every twelve months.
2. Replacement: If the VTM decides to step down from the role or is removed by a DAO vote, a selection process will be initiated to appoint a new individual or organization to take over treasury management.
3. Application: Prior to the completion of the VTM’s 12-month term, or in the event that an early replacement is required, a 14-day application process will be initiated for those interested - individuals or organisations - in being the VTM, who must fulfill two requirements, filling out a template and submitting a strategic plan:

  • Application Template:

    • DAO-recognized Name:
    • Individual or Organization?:
    • Twitter:
    • Time Zone:
    • Background, expertise and/or skills:
    • Experience & Track Record (Demonstrate proven experience in managing comparable assets, including concrete examples of successful treasury management practices or yield-generating strategies implemented in similar role):
    • What is your motivation for applying? (max 3 sentences):
    • List your past or current association, history, role and contributions to the ParaSwap/Velora protocol or DAO:
    • Briefly describe any other DAO working groups or teams in which you currently participate or have participated in the past:
    • Conflict of Interest Declaration:

  • Strategic Plan: Whoever applies to become a VTM must submit a strategic plan containing at least the following:

    • Strategy Overview: Comprehensive treasury strategy that includes:
      • A detailed plan that covers all areas related to the VTM’s ‘Scopes and Mandates’ previously defined, outlining the strategies intended to be activated to manage, optimize, streamline, diversify, preserve, and grow the DAO’s treasury in order to ensure its long-term financial stability. It should also address how the PSP token—or any new token—is expected to be strengthened.
      • A detailed risk management plan outlining how the DAO’s assets will be protected under various market conditions, including stress scenarios,
      • Projections for expected returns and yield generation supported by historical performance data and rational,
      • A clear implementation plan with defined phases, timelines, and success metrics to monitor performance and ensure accountability,
    • Reporting & Transparency: Clearly define how performance will be monitored and reported to the DAO, including the frequency and format. Must specify the key metrics and tools that will be used for continuous oversight and explain how these will be communicated in a consistent and transparent manner,
    • Compensation Structure: A detailed breakdown of the proposed fee or compensation model for treasury management, including any upfront, recurring, or performance-based fees. Specify how each fee component will be calculated, the payment schedule, and any conditions or performance thresholds that must be met for compensation to be released.

  • Community Review: A minimum of 7-day discussion period allows DAO members to evaluate candidates, ask questions, and provide feedback before moving to the voting phase.

  • DAO Voting: A Snapshot vote is conducted where voters select the next VTM.

Means

This proposal does not require any additional Velora, external product or development.

Implementation Overview

We do not foresee any potential negative outcome of the present proposal and it is not expected for the DAO to derive any associated implementation action.

Time of Implementation

The VTM is envisioned as a permanent structure, with its initial term lasting 6 months, and may be renewed for successive terms of the same length.

If the proposal is approved, it will start on September 1, 2025 and end on August 31, 2026.

Budget

Compensation

The following compensation scheme is established for the VTM’s initial 12-month term:

  • Fixed hourly rate: $75/hour compensation rate, with a maximum of 10 hours/week to be paid in PSP/New Token.
    • VTM will receive compensation in PSP/New Token. The number of tokens allocated for disbursement will be determined by calculating a 7-day TWAP, using data from the 7-day prior to the disbursement date.
    • Payments will be made on a monthly basis and will be calculated and executed within the first days of the following month.
    • Token historical price data can be gathered from publicly available sources like: CoinGecko - ParaSwap.
    • If payment is scheduled for a given day, the token price for that day can be estimated by averaging the 7 Day Range. This method ensures transparent and consistent valuation based on verifiable data.
    • Each month, the VTM must submit an invoice detailing billed hours. We suggest to follow the template format below when posting:
      • Name:
      • Rate: $75/hour rate
      • PSP/New Token TWAP Price:
      • Payment Address:
Week Start Week End Hours Total (USD)
MM/DD/YYYY MM/DD/YYYY X $Amount
MM/DD/YYYY MM/DD/YYYY X $Amount
MM/DD/YYYY MM/DD/YYYY X $Amount
Total Hs.: x Total $: x
Token Amount: Total USD / TWAP Price of PSP
  • Performance amount: The VTM may receive a performance fee subject to the treasury strategies eventually proposed and approved by the DAO.

As established in the ‘Advisory seat on DAO structures’ section, to avoid overlap of functions and double compensation, if the VTM holds a role within another DAO structure, it will not receive additional compensation or be paid as a member of that structure unless it contributes to its scope beyond its duties as VTM.

Risk Assessment

We do not understand that the proposal has cons, and the pros and positive impact on the rest of the community, the ecosystem and the protocol, is that it would enable the DAO to have a dedicated structure focused on the efficient management of the treasury, aimed at preserving its health and sustainability, and at generating revenue for the DAO.

7 Likes
Velora Growth Committee: Reflections and Recommendation from the Governance Task Force
2

This proposal establishing a dedicated Treasury Manager role to oversee the DAO’s dispersed treasury (PSP tokens, ETH, USDC, and other assets) makes a lot of sense. Introducing a team to professionally manage, rebalance, and strategically grow the treasury is both timely and necessary. The VTM would monitor income and expenses, alert the community to potential risks, and implement strategies to diversify assets, mitigate volatility, generate yield, and sustain financial health over the medium to long term.

We wholeheartedly support this PIP because it represents a mature, forward‑looking step toward financial resilience and sustainability for the DAO. With ongoing PSP 2.0 fee income and significant multi‑chain holdings, having a professional steward like @Avantgarde will bolster trust, transparency, and strategic oversight—ensuring the DAO can weather market uncertainty and invest wisely. In particular, the involvement of Avantgarde, previously appointed as Treasury Manager, for bringing DeFi-native, institutional-grade expertise to Velora’s treasury and governance we think should be well received. Their proven track record in on-chain asset management, advisory, and strategy has already helped elevate the DAO’s financial operations and credibility substantially.

3 Likes
3

I agree this is the right time for Velora to bring in a manager to professionalize treasury management in a systematic way.

Moreover, optimizing assets can safely enhance returns through DeFi strategies, staking, lending, and yield farming, while diversifying the portfolio to protect against excessive volatility.

I have no concerns if DAO chooses only one entity/individual for this role, and I recognize that Avantgarde has a proven track record of running innovative on chain investment strategies to generate sustainable, risk-adjusted returns.

However, it might also be worth considering opening applications at this early stage to attract a broader pool of candidates. For example, Scroll recently proposed a DAO treasury management and opened applications with clear criteria, such as:

  • Strategic fit: alignment with the DAO’s mission and values
  • Relevant experience
  • Treasury & risk management approach
  • Tooling
  • Cost
  • Willingness to work alongside other service providers
  • Commitment to consistent public reporting (including frequency and scope of updates)

In any case, this proposal presents a solid framework to professionalize treasury management and ensure a transparent and accountable process. I will support this proposal.

4

Thanks for initiating the proposal @SEEDGov

  • Can all the funds sitting across the different wallets be used for treasury management or are some funds exclusively reserved for rewards?
  • Do we know the absolute and relative value of the treasury that needs to be reserved for upcoming expenses over the coming months?
  • After setting aside these two liabilities, what is the actual USD value of funds which can be used for treasury management?

I completely trust @Avantgarde as the right choice for this role, however I wonder if incentives will be misaligned if the role holder is paid irrespective of treasury performance? I’d strongly advocate compensating the role holder in performance fees.

2 Likes
5

First of all, I’d like to congratulate the team for the proposal and for the clarity in defining the responsibilities of the Velora Treasury Manager (VTM). Professionalizing treasury management is a crucial step to strengthen governance and ensure that the DAO’s financial decisions remain aligned with its long-term vision. I believe the role, as described, already covers essential points in planning, execution, and monitoring.

However, I’d like to suggest an enhancement to increase execution capacity and treasury resilience: adding up to two more people to the strategic management team, working in a complementary way to the VTM. These positions could have half the hourly rate of the manager (US$ 37.50/h) and be limited to 7 hours per week each.

The role of these professionals would be to:

  • Support the VTM in risk, liquidity, and portfolio diversification analysis;

  • Continuously monitor key metrics, helping anticipate necessary adjustments;

  • Contribute to yield decisions and volatility protection strategies;

  • Create more frequent and accessible reports for the community to strengthen transparency.

This model not only distributes the workload but also reduces dependency on a single decision-making point, which is healthy for any DAO’s governance. Additionally, with controlled costs and well-defined roles, we can maintain budgetary efficiency while expanding our ability to respond quickly to market changes.

I see this structure as a way to ensure the treasury is not only preserved but also strategically leveraged for the sustainable growth of the Velora ecosystem.

6

We agree that now is the right time for Velora to professionalize its treasury management, and the framework outlined here provides a strong starting point. Optimizing assets through safe and diversified DeFi strategies can materially enhance returns while preserving the DAO’s long-term financial resilience.

But we would also like to echo @Ignas ‘s point. While Avantgarde is a credible candidate with a proven track record, we also would like to highlight that there are multiple capable teams in the space who can handle this mandate. Opening applications — even if brief — could surface a broader set of proposals, provide useful benchmarking on cost and approach, and strengthen community confidence in the selection process.

We at TiD Capital are also experienced across the full scope of the proposed VTM mandate. Our work includes:

  1. Comprehensive onchain asset management – Managing ETH, USD, and volatile token portfolios with a focus on sustainable yield generation, capital preservation, and diversification across stablecoins, ETH, and high-quality volatile assets.
  2. Treasury strategy development – Designing and implementing yield strategies through DeFi products, staking, lending, and liquidity provision, while aligning with defined risk parameters and governance requirements.
  3. Execution and slippage control – Structuring and executing diversification flows from governance tokens into stablecoins or other volatile assets, minimizing price impact and controlling slippage through optimized onchain execution.
  4. Performance tracking & reporting – Building and maintaining asset and portfolio tracking dashboards, providing real-time visibility into treasury composition, and monitoring income/expenses to ensure a healthy operational balance.
  5. Risk management – Implementing portfolio-level safeguards, volatility mitigation strategies, and protocol risk assessments to ensure long-term stability under varied market conditions.

This proposal lays the groundwork for a transparent, accountable, and performance-driven treasury function. We support its intent and scope, and believe that an open, criteria-based application process — as seen in other DAOs — would further strengthen the outcome for Velora.

7

Thanks for this proposal!

I support the broad concept of it, especially on the scope and mandate.

I want to add a few items to the discussion here (or to increase the specificity of some of the previous items within the mandate / scope). What are the targets/goals we, as DAO, want to achieve here?

  • Having XX months of runway in stables after XX months within the mandate
  • Diversify the treasury by XX% into stables/majors after XX months within the mandate
  • Increase the liquidity of PSP/New token to XX USD equivalent within XX months

I believe that establishing these types of KPIs/objectives is healthy to manage the expectations and to provide a concrete set of goals to the VTM.

1 Like
8

While I haven’t worked with @Avantgarde on treasury execution specifically, I’ve collaborated with them across VGC and growth/governance topics and have consistently seen rigor, prudence and clear communication which is exactly the qualities we want stewarding the DAO’s assets.

One optional idea to park for the upcoming policy maybe: consider a small, clearly bounded exploration of Liquity V2 (LQTY staking / BOLD rails) as a strategic, real-yield sleeve. A modest LQTY stake could accrue non-inflationary rewards and optional governance weight; down the line it might help co-fund a VLR/BOLD pool at migration, only if, the data supports it and the DAO signs off in a separate vote. Sized conservatively, with transparent guardrails.

In all cases, I’m fully behind giving @Avantgarde the helm here and letting them return with options, numbers and risk/ops implications for the community to evaluate at later stage.

Thanks @SEEDGov for posting this!

9

This is a great idea, and we definitely need a Treasury Manager at this point. DAO expenses have been increasing over the past couple of months due to parallel developments, and our treasury size is limited. I’m in favor of selecting @Avantgarde as the VTM. However, as other delegates have mentioned, we should add 1–2 complementary members.

Why? As you can see, we’re deep in the bull market, and based on past cycles, it won’t last long. Although I hate to use the oversaturated term “alt season,” the peak mania hasn’t even arrived yet. So, to maximize the benefits of this bull run and rebalance the treasury portfolio, I believe we should add 1–2 more people to the TM team for at least the next 6 months—ideally, someone on the frontlines of innovation, farming opportunities, and with solid trading skills.

Even if the DAO decides not to add anyone else, I’ll try to contribute alongside the manager during the upcoming alt season.

10

Response to PIP-XX: Velora Treasury Management Proposal

I want to provide context on this proposal while disclosing an important conflict of interest.

A significant portion of my delegation comes from Avantgarde, so I will be recusing myself from the formal vote on this proposal to maintain governance integrity. This disclosure is necessary for transparency, and I believe delegates should always be clear about potential conflicts when discussing proposals.

With that disclosure made, I can share my experience working with @Avantgarde in my role at Gitcoin, where they currently manage strategic assets for our matching pool under SGTM-002. Their performance has been professional and effective - they’ve provided clear reporting, maintained conservative risk management appropriate for DAO treasuries, and been responsive to community feedback. While every DAO’s needs differ, our experience suggests they have the operational capability to handle treasury management responsibilities.

To strengthen this proposal, I’d suggest adding specific operational parameters that will help both the DAO and the Treasury Manager succeed. These could include:

  • defined thresholds for what actions require DAO votes (perhaps transactions over a certain amount or % of treasury)
  • explicit risk limits and portfolio allocation ranges (like maximum % in any single asset)
  • performance KPIs tied to the optional performance bonus structure.
  • monthly updates alongside quarterly reports would also keep delegates informed during volatile periods.

These additions would create clear operating boundaries while maintaining the flexibility needed for effective treasury management.

3 Likes
Sov: Delegate Platform
11

We think setting up a dedicated Treasury Manager is the right step for Velora. Avantgarde is a strong candidate with the right background, and we truly appreciate the contributions they have already made to the DAO. Having someone focused on the treasury will bring structure, consistency, and professional oversight to an area that is becoming increasingly important.

At the same time, we believe the role should not be appointed directly. Even a short open application process could bring in other perspectives, help benchmark costs and strategies, and show the community that we are picking the best option available. Putting all responsibility into a single entity without competition creates concentration risk, similar to holding all assets in one protocol and being more exposed if something goes wrong. Diversifying not just assets but also the management process helps protect the DAO in the long run.

We also think compensation could be better aligned. A flat hourly rate provides stability, but adding a performance-based element tied to outcomes like sustainable yield, diversification, or risk management would create stronger alignment. If the treasury grows healthier and safer under their stewardship, both the DAO and the manager benefit.

Overall, we support this proposal and trust Avantgarde to do a great job. We simply recommend two improvements: open the process, even briefly, and add performance incentives. These changes would make the framework stronger, build community trust, and ensure the treasury is managed with both professionalism and resilience.

Avantgarde Finance Delegate Platform
Curia - Delegate Communication Thread
12

Thank you @SEEDGov for putting this forward and to all delegates for your feedback!

Wanted to share some additional context for this proposal and address some points:

  1. Hourly rate

The reason us and SEEDGov are suggesting an hourly rate at this stage is mainly because allocating assets for yield generation is not necessarily the first step in this process, as the DAO treasury is mainly composed of PSP. Initial work will focus on providing dashboard/better overview of the DAOs finances as a foundation, as well as researching and drafting treasury-related proposals and ideas for the DAO to consider. Given the nature of this work, we felt per hour made most sense for the DAO.

In fact, this mandate does not involve any significant fund movement nor any strategic asset allocation for now. Once the DAO treasury is in a position where this becomes relevant (hopefully soonish), we will draft up and bring a strategic proposal to the DAO, which will need the DAO’s approval before being implemented. With assets to manage, we’ll propose an update to the fee model.

  1. Treasury value and available funds

Yes, funds are pretty limited in terms of what can be done right now, and as you can see in the treasury links provided in the initial post, there are no millions to rebalance into any bull-run maximising strategy unfortunately. The DAO has in recent months passed significant spend proposals that has contributed to this, though there are a couple to a few hundred thousands in there that we will start thinking about allocating, which we’ll look to grow in the coming months as the protocol generates revenue. First step is to get a much clearer picture of money coming in and money going out, accumulate reserves and begin allocating assets.

  1. Additional members

Honestly we see very little need to add more people to the treasury management team given the somewhat limited amount of work right now (as discussed above), plus we have a full team to support as needed. Having said that, it doesn’t mean we are not open to collab with delegates and other contributors to the DAO if it makes sense.

  1. Open RFP process

We have been discussing treasury-related ideas with SEED, the VGC, Oxy and others for a while now and this proposal simply aims to allow us (Avantgarde) to start implementing some of that work of getting the finances “organised” and draw up a plan so that the DAO can gradually start putting some of its revenue aside as reserves for yield generation to improve overall sustainability. The DAO is of course free to disagree with this proposal and announce an open RFP if that is indeed the wish of the majority. However, we believe the DAO would struggle to attract service providers as it is (at least at this stage) simply not a particular lucrative opportunity at this point in time given the limited funds available for yield and fee generation.

As a significant stakeholder in the Velora protocol, we have more skin-in-the-game than most and have all the incentives one could need to want to do what is best for the protocol and contribute to its success. This is the reason we offered to take this on.

  1. KPIs

We agree @jameskbh it makes sense to outline some targets for the DAO to work towards, an exercise we think will be a lot easier once we have established a clear picture of the finances. Once we have that, we’ll propose a plan forward and will include suggestions for the KPIs that are relevant to that specific proposal. Likewise, if we were to propose a liquidity provision proposal to the DAO, we’d include KPI there as well.

Hope this all provides some clarity to our thinking, but feel free to ask further questions. Again, see this more as Avantgarde taking the lead on treasury initiatives, but any strategy implementation and fund movement will still require the DAO’s approval by vote. Thanks again all for the engagement so far!

5 Likes
13

We reviewed the feedback so far and, while @Avantgarde’s response already reflects much of our view, we want to stress one point: opening an application process at this early stage could be counterproductive. Velora DAO doesn`t have dozens or even hundreds participants, unlike larger DAOs such as Arbitrum or Optimism, where many of them are professionals in cash management.

Launching a call now could lead to two issues: no qualified applicants within a short timeframe, or candidates with only superficial knowledge of Velora, requiring significant time to catch up.

Currently, VeloraDAO already has a professional financial manager with deep knowledge of the DAO, the protocol, and that it is even already developing strategies for operating the DAO’s treasury, in addition to the fact that its own interests are aligned with the protocol and token’s long-term success. For these reasons, entrusting the treasury to outsiders would be risky and premature.

4 Likes
14

We support the creation of the Treasury Manager role. At this stage, clarity and structure around inflows, outflows, and reserves are truly valuable. We agree that Avantgarde is a natural fit for the initial mandate. We do not believe it is necessary to open this process to external candidates at this stage, in line with others. However, we do consider it important for the VTM to begin moving funds as soon as possible, so the fee model can gradually shift from fixed fee to performance fee. This is not a blocker, but it is something we would like to encourage.

2 Likes
15

As @Avantgarde kindly acknowledged there isn’t anyone better fit to have the success of the project at heart then themselves ! Easy decision full confidence and support.

Reddite ergo quae sunt Caesaris Caesari

Bring it to Snapshot ! :paw_prints: :leopard:

2 Likes
16

Forum comments already show broad alignment on the idea that treasury management is needed, and there is little doubt that a dedicated manager will bring value. Furthermore, Avantgarde has already demonstrated familiarity with the DAO’s needs and has established itself as the strongest subject matter expert available to guide Velora through this process today. In that sense, this proposal is valuable in spotlighting treasury management as a priority and in identifying a capable partner.

That said, we have a couple of comments on the process here. The vote as drafted appears to frame treasury management as an RFP-style/application process, as if the DAO were choosing among competing bids. At present, however, there is no competitive landscape of treasury managers vying for Velora’s mandate apart from Avantgarde. Attempting to formalize this as an RFP risks creating unnecessary inefficiency and ambiguity at a time when the DAO’s focus should be on setting up the initiative in the most streamlined way possible. Equally important, the proposal does not provide sufficient clarity around KPIs or strategy. It seems like the TM themselves will define that role.

Without a defined framework outlining objectives, benchmarks, and guardrails, the DAO cannot reasonably evaluate the quality or success of a treasury manager’s work. But the question is who will be involved in creating that outline. We are comfortable with the TM taking on this duty.

An effective path forward is to recognize that the DAO does not need to run a pseudo-RFP today; rather, it needs to appoint a single treasury manager with expertise, establish expectations, and move quickly toward an actionable plan. Avantgarde is the clear candidate for this role at the present time. For that reason, the upcoming vote should be structured simply as a ratification, either to approve Avantgarde as Velora’s treasury manager or to reject their appointment. If ratified, Avantgarde should be asked to submit their own RFC, which lays out a clear and concrete management strategy, a defined set of KPIs to measure success, and a compensation structure that is tied directly to execution.

After the initial 12-month period, it’s more appropriate to run a full-fledged RFP.

1 Like
17

Thank you for submitting this proposal @SEEDGov ! I support appointing @Avantgarde as the Treasurer Manager for Velora DAO for an initial 12-month term.

Avantgarde’s proven track record and expertise in treasury management, along with their strong alignment and active involvement with Velora DAO, make them an excellent choice. After consulting with the Kleros Treasurer, I can confirm that Avantgarde’s proposed rate is highly competitive and I don’t think the DAO could find a better deal.

Also I oppose appointing multiple treasury managers, as the size of Velora DAO’s treasury does not justify the added complexity this would introduce, the priority is to keep finance on track and have AvantGarde propose clear strategies with KIP to the DAO.

2 Likes
0xAlex - Delegate Platform
18

Thank you for the feedback. Respectfully, we do not share your approach, as this proposal can be summarized in three essential points:

  1. Establish a framework for the role of the DAO Treasury Manager (regardless of who holds the role today or in the future).
  2. Appoint Avantgarde for the first 12 months.
  3. Define a clear selection process in case Avantgarde resigns or is removed by the DAO.

We believe that leaving out any of these aspects could create governance risks: If only Avantgarde is appointed without defining the role framework, their scope of work, limitations, obligations, and responsibility would lack proper structure. And if there is no process defined for replacement, the DAO would face uncertainty in the event of resignation or removal.

Regarding this specific point: as currently designed, any strategy that the VTM proposes to implement must be presented to the DAO, include its KPIs (as already required under PIP-57 for any proposal), and be approved by the DAO.

19

We thank @SEEDGov and @Avantgarde for putting forward this thoughtful proposal.

We support it because professionalizing treasury management must begin with a structured baseline, such as consolidating assets scattered across multiple chains, and clarifying objectives. Starting with a modest fixed hourly framework is a pragmatic way to establish these foundations. At this stage, without a clear plan to deploy significant capital or generate explicit revenue, the mandate is unlikely to attract multiple external candidates, so entrusting Avantgarde initially is both practical and low-risk. The fixed compensation level is modest and entirely reasonable. From here, once a clearer long-term strategy emerges, the DAO can debate broader directions or consider other providers if needed. While the possibility of Avantgarde acting against the DAO’s interests is extremely low, safeguards exist, and thus, we do not have a reason for excessive concern.

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20

Given the 7-day debate period for this proposal has concluded a few days ago and the state of the discussion, we communicate that, in accordance with the PIP Lifecycle approved by PIP-57, we are ending the debate stage and initiating the 2-day frozen period. After this period we will submit the proposal to snapshot.

Thank you all!

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