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

​
How the Treasury Is Funded

The treasury receives funds from two primary sources:

​
1. Protocol Fees

A portion of fees generated by Dynamo markets and vaults flows to the treasury:
SourceDescription
Loan asset depositsLoan asset deposits into markets
Vault feesFees generated in Dynamo vaults
Fee percentages and recipient addresses are governed by the DAO and can be adjusted via governance proposals.

​
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

​
What the Treasury Holds

Asset TypeExamples
Protocol revenueWBTC, ETH, USDC (from market and vault fees)
DYNAMO tokensTreasury allocation, subject to vesting
MORPHO tokensHeld for Morpho DAO voting power (SubDAO participation)
Other assetsMay include LP positions or other DAO-approved holdings
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.

​
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.

​
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.

​
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.