Scientific management of funds on the chain｜Moonbeam treasury

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Moonbeam treasury

Each Moonbeam-based network will have its own treasury. In other words, the Moonbase Alpha testnet, Westend’s Moonshadow network, Kusama’s Moonriver network, and Polkadot’s Moonbeam will all have their own treasuries.

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Basic concepts about treasury:

council

The group of electors who control the funds of the treasury.

proposal

proposal

A plan or proposal to facilitate a network proposed by stakeholders and approved by the Council.

proposal bond

A deposit equal to a certain percentage of the proposal's total spend amount.

Minimum Proposal Deposit

Minimum amount for proposal bond. When this amount is higher than the deposit percentage, it must be paid as a margin.

Expenditure period

The number of days in blocks during which the treasury funds various proposals, up to a maximum.

Maximum number of approved proposals

Important indicators of the Moonbase Alpha/Moonriver treasury:

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Community Treasury

A portion of the transaction fees for each block will be deposited into the treasury. The remainder will be destroyed. The treasury allows stakeholders to submit fund spending proposals for review and voting by the council. These spending proposal proposals include initiatives to boost the network or increase participation in the network. Some networking plans should include integrations, collaborations, community events, network expansion, etc.

To discourage spam proposals, proposals must be submitted with a bond, also known as a proposal bond. The proposal deposit must be higher than the minimum amount, the minimum proposal deposit, which can be changed through governance proposals. Therefore, any token holder who has enough tokens to cover the security deposit can submit a proposal. If the proposer does not have enough funds to pay the deposit, the external fails due to insufficient funds, but the transaction fee is still deducted.

After the proposal is submitted, it is governed and the council votes on it. If the proposal is rejected, the security deposit will be transferred to the treasury. If approved by the Council, the proposal will enter the waiting queue and then enter the spending period. If the queue waiting to be spent happens to reach the maximum number of approved proposals, the proposal submission fails, similar to the case where the proposer's balance is too low.

Once a proposal enters the spend period, funds are distributed to beneficiaries and the original security deposit is returned to the proposer. If the Treasury runs out of money, the remaining approved proposals are held until the next spending period, when the Treasury once again has sufficient funds.