> For the complete documentation index, see [llms.txt](https://seivestorsnft.gitbook.io/seiventuresnft/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://seivestorsnft.gitbook.io/seiventuresnft/litepaper/governance-and-organisation/governance-outline/dao-treasury-management.md).

# DAO Treasury management

## Principles for managing the DAO Treasury <a href="#principles-for-managing-the-apedao-treasury" id="principles-for-managing-the-apedao-treasury"></a>

As set out earlier in the litepaper, the DAO Treasury is owned by the NFT holders. One NFT entitles the holder to 1/2222th of the Treasury, which is implemented via the floor price of the NFTs.

The Treasury is key for making the DAO function, and is a point of vulnerability given risks including fraud, misconduct or theft. Security is paramount to us, with particular focus on the following elements:

* Access to the Treasury: Initially, the Treasury is centrally maintained by the founder. As we take up operations, the council and committee will need access to the Treasury in order to make investments and other allocations
* Continuity management: The DAO is a construct that is not linked to a single individual, but should be a continuous organisation as long as there is strong enough interest in the collective of the NFT holders. Unforeseen events such as anything happening to an individual or the location where ledger or recovery documentation is stored need to be mitigated
* External risks: Our value propositions will require us to hold tokens and NFTs on different platforms. Experience shows that these can (and unfortunately do occasionally) get hacked.

## Allocation of the DAO Treasury <a href="#allocation-of-the-apedao-treasury" id="allocation-of-the-apedao-treasury"></a>

As set out before in this paper, the DAO Treasury is owned by the NFT holders and intrinsically linked to the NFTs. However, running the DAO will require access to some funds for purposes beyond investment, which we intend to cover through ring-fenced “pots” that are dedicated to a specific purpose:

* Operating expenses: As we get the DAO off the ground and it starts operating, we may incur expenses such as administrative or contractor fees. For example, this might be fees related to a developer coding specific smart contracts for us. The size of the pot for operating expenses will be suggested by the Council and put to a vote by the NFT holders. As this is strictly cash for operating expenses, we expect this pot to be held in a mix of different stable coins
* Incentives: Operating our value propositions will require time commitments from individual members of the DAO (and potentially partners from the ecosystem). While the initial seed capital of the Treasury will not be touched, an idea that we are working on is to create a performance-linked mechanism that will flow a set percentage of the DAO returns into a pot to be shared amongst the holders of specific roles after a set period. This mechanism will be worked out and put to a vote of the NFT holders - we believe that setting a fair incentive will be required to secure the talent that we need to successfully launch our operations

As we acquire a portfolio of utility NFTs, we will see where these utilities can be leveraged by the NFT holders.