Updates to 1Hive's Treasury Process

🐝 Community
#1

Background

The 1Hive community currently holds ~$450k across many different networks, multisigs, smart contracts, and tokens - including:

…and several others, tracked here in Dune.

In September 2024, 1Hive approved an updated process for treasury management in this Snapshot vote to allow for some basic collective decision-making on treasury management. Through this system, ~$60k in treasury redemptions have been paid out to 1Hive proposals over the last 10 months.

To help bring this system incrementally more onchain, and to make the rate of expenditure more predictable for budgeting, the 1Hive Ops Swarm collaborated on a new system that is now replacing the existing treasury redemption program.

How it Works

The community of Honey holders can now manage 1Hive’s treasury in the 1Hive Community on Gardens v2, using these 2 governance pools:

  1. Common Pool

    • Open-ended funding proposals for growing and maintaining the 1Hive ecosystem, similar to the 1Hive v1 Garden’s Common Pool
    • Pool will be funded with $sDAI from the Treasury
    • Annual outflow rate of 15% - streamed directly into the pool and periodically updated by the Council Safe to keep up with market fluctuations in the total value of the Treasury.
    • Link to new Common Pool

  2. Treasury Management

    • Proposals for taking strategic actions with the tokens in 1Hive’s Treasury, like swapping, staking, or participating in governance, with the goal of fostering a healthy portfolio that can maintain the long term financial health of 1Hive
    • Modeled after the existing treasury redemption program, the pool uses a redemption token named $TREASURY with a supply of 100, representing the portion of the Treasury the requested action will use. For instance, a proposal to swap 25% of the total value of the Treasury from $ETH to $sDAI requires a request of 25 $TREASURY to be executed
    • For proposals that pass, the Council Safe will set up and execute the transactions, and send the $TREASURY back to the pool
    • Link to new Treasury Management Pool

How to participate

  1. Join the 1Hive Community on Gardens v2
  2. Create a proposal in the Citizen’s Registry and get support - this is used for sybil protection since the new pools are quadratically weighted
  3. Activate your governance in the Common Pool and/or the Treasury Management Pool to be able to vote

Looking Forward

The Ops Swarm plans to improve this system in the future by:

  • Migrating the existing Common Pool of Honey to the v2 Garden, and using treasury funds to buy HNY at the capped rate of 15% annually
  • Automating role management in multisigs, allowing for changing the signers of the Council Safe and approving addresses from the Citizen’s Registry for voting to be moved entirely onchain
  • Consolidating Treasury assets into fewer contracts so they can be managed more easily
  • Establishing more revenue streams into the Treasury to help grow 1Hive further
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