Abstract

This PIP defines the treasury management standard for Pars DAO. It establishes policies for fund custody, spending authorization, contributor payments, reserve requirements, and emergency procedures. The treasury operates through a Safe multisig with Governor governance integration and uses Sablier for continuous streaming payments.

Motivation

Responsible treasury management is essential for long-term sustainability of Pars Network:

1. Accountability - Community funds must be managed transparently with clear authorization policies
2. Security - Multi-layered authorization prevents theft, mismanagement, and single-point-of-failure risks
3. Sustainability - Reserve requirements and diversification ensure operational continuity
4. Efficiency - Streaming payments and tiered approvals enable rapid allocation without sacrificing oversight
5. Resilience - Emergency procedures protect funds during crisis scenarios

Without formalized treasury management:

• Large transfers could be executed without sufficient community review
• Concentration in a single asset exposes the DAO to catastrophic loss
• Lack of reserve policy risks operational shutdown during market downturns
• No emergency procedures leaves funds vulnerable during attacks

Specification

Treasury Architecture

┌─────────────────────────────────────────────────────────────────────────────────────┐
│                           PARS DAO TREASURY                                          │
├─────────────────────────────────────────────────────────────────────────────────────┤
│                                                                                      │
│  GOVERNANCE LAYER (PIP-7000)                                                        │
│  ┌───────────────────────────────────────────────────────────────────────────────┐  │
│  │  vePARS Voting ──► Governor Module ──► Proposal Approval                      │  │
│  └───────────────────────────────────────────────────────────────────────────────┘  │
│                                      │                                               │
│                                      ▼                                               │
│  CUSTODY LAYER (Safe Multisig)                                                      │
│  ┌───────────────────────────────────────────────────────────────────────────────┐  │
│  │                                                                               │  │
│  │  ┌─────────────────┐  ┌─────────────────┐  ┌─────────────────┐              │  │
│  │  │  Main Treasury   │  │  Operations      │  │  Grants          │              │  │
│  │  │  (3-of-5)        │  │  (2-of-5)        │  │  (3-of-5)        │              │  │
│  │  │                  │  │                  │  │                  │              │  │
│  │  │  Long-term       │  │  Monthly opex    │  │  Ecosystem       │              │  │
│  │  │  reserves        │  │  up to $10K/mo   │  │  development     │              │  │
│  │  └─────────────────┘  └─────────────────┘  └─────────────────┘              │  │
│  │                                                                               │  │
│  └───────────────────────────────────────────────────────────────────────────────┘  │
│                                      │                                               │
│                                      ▼                                               │
│  PAYMENT LAYER (Sablier Streams)                                                    │
│  ┌───────────────────────────────────────────────────────────────────────────────┐  │
│  │  Contributor Streams    Grant Streams    Vesting Streams                      │  │
│  │  ┌──────────────┐     ┌──────────────┐  ┌──────────────┐                     │  │
│  │  │ Monthly pay  │     │ Milestone    │  │ Token vest   │                     │  │
│  │  │ continuous   │     │ based        │  │ 4-year cliff │                     │  │
│  │  └──────────────┘     └──────────────┘  └──────────────┘                     │  │
│  └───────────────────────────────────────────────────────────────────────────────┘  │
│                                                                                      │
└─────────────────────────────────────────────────────────────────────────────────────┘

Multi-Sig Policies

The treasury uses multiple Safe vaults with different authorization levels:

Vault	Threshold	Purpose	Monthly Limit
Main Treasury	3-of-5	Long-term reserves, large allocations	Governance approval required
Operations	2-of-5	Recurring operational expenses	$10,000
Grants	3-of-5	Ecosystem grants and bounties	Governance approval required

For the Main Treasury, higher thresholds apply to large transfers:

Transfer Size	Signer Threshold	Additional Requirements
Standard operations	3-of-5	Standard governance proposal
Large transfers ($100K+)	4-of-5	Super-majority vote (67%), 30-day timelock

Spending Tiers

All treasury expenditures follow a tiered approval process:

Tier 1: Under $10,000

Parameter	Value
Proposal Type	Standard
Voting Period	7 days
Quorum	10% of circulating vePARS
Approval Threshold	>50%
Timelock	48 hours
Signer Threshold	3-of-5

Tier 2: $10,000 - $100,000

Parameter	Value
Proposal Type	Extended Review
Voting Period	14 days
Quorum	15% of circulating vePARS
Approval Threshold	>50%
Timelock	7 days
Signer Threshold	3-of-5

Tier 3: Over $100,000

Parameter	Value
Proposal Type	Major Allocation
Voting Period	21 days
Quorum	20% of circulating vePARS
Approval Threshold	>67% (super-majority)
Timelock	30 days
Signer Threshold	4-of-5

Sablier Streaming Payments

Contributors and grant recipients receive payments via Sablier token streams:

interface ITreasuryStreams {
    /// @notice Create a contributor payment stream
    /// @param recipient Contributor address
    /// @param totalAmount Total PARS for the stream period
    /// @param startTime Stream start timestamp
    /// @param endTime Stream end timestamp
    /// @return streamId The Sablier stream identifier
    function createContributorStream(
        address recipient,
        uint256 totalAmount,
        uint256 startTime,
        uint256 endTime
    ) external returns (uint256 streamId);

    /// @notice Create a milestone-based grant stream
    /// @param recipient Grant recipient address
    /// @param milestones Array of (amount, unlockTime) pairs
    /// @return streamId The Sablier stream identifier
    function createGrantStream(
        address recipient,
        Milestone[] memory milestones
    ) external returns (uint256 streamId);

    /// @notice Cancel a stream (returns unvested funds to treasury)
    /// @param streamId The stream to cancel
    function cancelStream(uint256 streamId) external;
}

Stream Types:

Type	Curve	Use Case
Contributor	Linear	Monthly contributor compensation, continuous vesting
Grant	Cliff + Linear	Ecosystem grants with milestone-based unlocks
Vesting	Cliff + Linear	Team token vesting (1-year cliff, 4-year total)

Stream Benefits:

• Contributors receive compensation continuously (claimable at any time)
• DAO can cancel streams if contributor stops contributing (unvested funds return to treasury)
• Transparent: all streams visible on-chain
• Reduces treasury management overhead (no manual monthly transfers)

Reserve Requirements

The DAO must maintain minimum reserves at all times:

Requirement	Value	Description
Operational Runway	6 months minimum	Sufficient funds to cover all active contributor streams and operational costs
Stablecoin Reserve	30% of operational runway	Denominated in USDC/DAI to hedge volatility
Emergency Fund	$100,000 minimum	Immediately accessible for security incidents

If reserves fall below the minimum, all Tier 2 and Tier 3 spending is automatically suspended until reserves are replenished.

Diversification Policy

The treasury must maintain asset diversification:

Constraint	Limit	Description
Single Asset Maximum	30% of total treasury	No single asset (excluding PARS) may exceed 30%
Stablecoin Minimum	20% of total treasury	Minimum stablecoin allocation for stability
PARS Maximum	50% of total treasury	Prevents excessive exposure to native token
Rebalancing Period	Quarterly	Treasury composition reviewed every 90 days

Quarterly Treasury Reports

The treasury committee must publish quarterly reports including:

1. Balance Sheet: All assets held across all vaults
2. Income Statement: Revenue sources and amounts
3. Expenditure Report: All outflows categorized by type
4. Stream Status: Active contributor and grant streams
5. Reserve Compliance: Current reserves vs. minimum requirements
6. Diversification Compliance: Current allocation vs. policy limits
7. Upcoming Obligations: Projected expenses for next quarter

Reports are published on-chain (IPFS hash stored in governance contract) and on the governance portal (pars.vote).

Emergency Procedures

Emergency Freeze

Any 2-of-5 Safe signers can trigger an emergency freeze:

interface IEmergencyFreeze {
    /// @notice Trigger emergency freeze on all treasury vaults
    /// @param reason Description of the emergency
    /// @dev Requires 2-of-5 signers to co-sign within 1 hour
    function emergencyFreeze(string memory reason) external;

    /// @notice Lift emergency freeze
    /// @dev Requires 3-of-5 signers or governance vote
    function liftFreeze() external;
}

• Duration: 72 hours maximum
• Effect: All pending transactions and streams are paused
• Extension: Requires governance vote to extend beyond 72 hours
• Notification: All vePARS holders notified via Session daemon (PIP-0005)

Emergency Recovery

In case of signer compromise:

1. Remaining signers freeze the treasury
2. Emergency governance proposal to replace compromised signer (expedited 3-day vote)
3. New signer added via governance execution
4. Freeze lifted by remaining honest signers

Audit Requirements

Financial Audits

• Quarterly: Internal audit by treasury committee
• Annual: External audit by independent third party
• Continuous: On-chain transparency (all transactions publicly visible)

Smart Contract Audits

• All treasury contracts audited before deployment
• Any contract upgrades require fresh audit
• Bug bounty program for treasury-related contracts

Security Considerations

Fund Safety

• Multi-sig prevents unilateral fund movement
• Tiered approval scales security with transfer size
• Timelock allows community review of large transfers
• Emergency freeze provides rapid response to threats

Signer Security

• Signers must use hardware wallets
• Post-quantum signatures supported for signer operations (PIP-0002)
• Signer key rotation every 6 months
• No single signer has access to more than one vault's threshold

Economic Security

• Reserve requirements prevent insolvency
• Diversification prevents catastrophic loss from single asset
• Streaming payments prevent large lump-sum extraction
• Quarterly reporting ensures transparency

Censorship Resistance

• Treasury operations execute on Pars EVM (censorship-resistant by design)
• Emergency procedures accessible via mesh network (PIP-0001)
• No dependence on centralized infrastructure for fund management

References

• PIP-7000: DAO Governance Framework
• PIP-0001: Mesh Network
• PIP-0002: Post-Quantum Encryption
• PIP-0005: Session Protocol
• Gnosis Safe Documentation
• Sablier Documentation
• Governor Module

Copyright

Copyright and related rights waived via CC0.