> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dynamo.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Treasury

> How the Dynamo DAO treasury is funded, what it holds, and how spending decisions are made and executed via governance.

The Dynamo DAO treasury is the financial backbone of the protocol. It funds operations, ecosystem growth, and the DAO's participation in [Morpho governance](https://dynamo.finance/).

## 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:

| Source                  | Description                      |
| :---------------------- | :------------------------------- |
| **Loan asset deposits** | Loan asset deposits into markets |
| **Vault fees**          | Fees 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 Type           | Examples                                                |
| :------------------- | :------------------------------------------------------ |
| **Protocol revenue** | WBTC, ETH, USDC (from market and vault fees)            |
| **DYNAMO tokens**    | Treasury allocation, subject to vesting                 |
| **MORPHO tokens**    | Held for Morpho DAO voting power (SubDAO participation) |
| **Other assets**     | May 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:

<Steps>
  <Step title="Proposal Submitted">
    A community member or the core team submits a treasury spending proposal via the governance forum (see Proposals).
  </Step>

  <Step title="Community Discussion">
    The community reviews the request, asks for justification, and refines the scope on Discourse.
  </Step>

  <Step title="Snapshot Vote">
    The proposal goes to a formal Snapshot vote. DYNAMO holders vote to approve or reject.
  </Step>

  <Step title="Execution">
    If approved, the multisig (and eventually timelocked governance contracts) executes the transfer.
  </Step>
</Steps>

## 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

<Note>
  The official Dynamo DAO treasury address will be published at launch. Always verify via the official governance forum before interacting.
</Note>

## 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.