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The Dynamo DAO treasury is the financial backbone of the protocol. It funds operations, ecosystem growth, and the DAO’s participation in Morpho governance.

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How the Treasury Is Funded

The treasury receives funds from two primary sources:

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1. Protocol Fees

A portion of fees generated by Dynamo markets and vaults flows to the treasury: Fee percentages and recipient addresses are governed by the DAO and can be adjusted via governance proposals.

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2. Token Allocation

At genesis, a portion of the DYNAMO total supply is allocated directly to the treasury (see Tokenomics). These tokens are DAO-controlled and can be deployed via governance votes for:
  • Grants and developer incentives
  • Liquidity programs
  • Partnership agreements
  • Operational expenses

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What the Treasury Holds

The Dynamo DAO holds MORPHO tokens specifically to participate in Morpho protocol governance as a SubDAO. This is a strategic holding, not a yield position.

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How Spending Decisions Are Made

All treasury expenditures above $20,000 require a governance proposal:
1

Proposal Submitted

A community member or the core team submits a treasury spending proposal via the governance forum (see Proposals).
2

Community Discussion

The community reviews the request, asks for justification, and refines the scope on Discourse.
3

Snapshot Vote

The proposal goes to a formal Snapshot vote. DYNAMO holders vote to approve or reject.
4

Execution

If approved, the multisig (and eventually timelocked governance contracts) executes the transfer.

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Treasury Transparency

The DAO is committed to full transparency on treasury holdings and spending:
  • Treasury address and balances are publicly verifiable on-chain
  • Spending proposals and approvals are publicly recorded on the governance forum and Snapshot
  • Periodic treasury reports will be published in the community forum
The official Dynamo DAO treasury address will be published at launch. Always verify via the official governance forum before interacting.

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Emergency Actions

In situations requiring immediate action (e.g. security incidents), the protocol multisig may act without a full governance vote. Any such actions must be:
  • Disclosed publicly within 24 hours
  • Ratified or reversed by a subsequent governance vote
This emergency authority is scoped narrowly to security-critical situations and is subject to the DAO removing it as governance matures.