Authors: DAO-ops (0xPickles, 0xkorin)
1. Summary
This proposal asks the DAO to:
- Accept the reconciliation of $463,196.53 in paid expenses and existing approved commitments, including $213,196.53 above the original $250,000 allocation.
- Allocate a further $250,000 worth of stablecoins from the Treasury for the next batch of discretionary expenses.
- Establish a dedicated funding distributor and a wrapper contract through which yChad records and approves spending, attributing each expense to a team or to the DAO as a whole.
- Introduce YBC signaling through Snapshot, followed by yChad ratification through the spending transaction.
2. Abstract
The discretionary fund has operated through expenses approved by yChad while the dedicated on-chain fund remains to be established. Payments total $413,196.53. Two already approved but unpaid audits account for a further $50,000, bringing the reconciliation to $463,196.53.
The DAO is asked to accept this reconciliation and provide $250,000 for the next batch of expenses. The proposal also sets out how future payments will be recorded on-chain and how contributors will signal support before yChad executes them.
3. Background
YIP-88[#1] established a discretionary fund for urgent, sensitive or unforeseen expenses, with an initial Treasury allocation of $250,000 in stablecoins. It assigned management to yChad and required a DAO vote and an expenditure report for replenishment.
In practice, yChad has approved expenses as they arose, with accounting maintained in a spreadsheet. These expenses include security audits, bug bounties, yChad Borgification and donations. The $220,000 Sherlock Spark Lender bounty was the largest expense and drove spending above the original allocation.
This proposal brings the expenditure and commitments to the DAO for reconciliation and acceptance, and begins the transition to the dedicated on-chain fund envisaged by YIP-88.
4. Motivation
Security work and other time-sensitive expenses need a faster decision process than the regular DAO proposal cycle. They also need a record that contributors and token holders can review.
The proposed process combines YBC signaling with yChad’s responsibility for executing payments. Snapshot allows a shorter voting cadence, while a defined electorate and recorded votes provide contributor accountability and help limit manipulation. yChad retains the final decision through its transaction.
On-chain transactions and linked IPFS records will make each payment’s purpose and attribution visible. Team-specific costs will count toward the relevant team’s expenditure, while shared costs, including bug bounties, will use a Global attribution.
5. Specification
5.1 Expenditure and commitment reconciliation
The DAO is asked to accept the following reconciliation of expenses and commitments already approved by yChad, totaling $463,196.53 as of September 30, 2026. This includes $413,196.53 paid and $50,000 committed to two unpaid audits.
The table records USDC accounting values, with fund tracking[#2] and transaction references for review. Attribution assigns each expense to the relevant team or to Global for a DAO-wide cost.
| # | Expense | Type | Attribution | Status | Amount (USDC) | Evidence |
|---|---|---|---|---|---|---|
| 1 | Immunefi bounty | Bug bounty | Global | Paid | 1,000.00 | Transaction |
| 2 | Whitehat | Bug bounty | Global | Paid | 6,000.00 | Transaction |
| 3 | stYFI 1 (yAudit) | Audit | DAO-ops | Paid | 60,000.00 | Transaction |
| 4 | stYFI 2 (Sherlock) | Audit | DAO-ops | Paid | 62,000.00 | Transaction |
| 5 | Correctness on operator migration | Bug bounty | Global | Paid | 1,000.00 | Transaction |
| 6 | Teams & YBC (yAudit) | Audit | DAO-ops | Paid | 40,000.00 | Transaction |
| 7 | Frontend Bounty | Bug bounty | Global | Paid | 2,000.00 | Report, transaction |
| 8 | Whitehat Bounty + Immunefi fees | Bug bounty + fees | Global | Paid | 3,200.00 | Transaction |
| 9 | Sherlock Spark Lender Bounty | Bug bounty | Global | Paid | 220,000.00 | Report, transaction |
| 10 | yChad Borgification | yChad | DAO-ops | Paid | 12,146.53 | Transaction |
| 11 | Discourse Bounty | Bug bounty | Global | Paid | 250.00 | Transaction |
| 12 | Proposal & Vote boost contracts | Audit | DAO-ops | Unpaid | 25,000.00 | Payment pending |
| 13 | Bug bounty + Immunefi fee | Bug bounty | Global | Paid | 1,100.00 | Transaction |
| 14 | Frontend Bounty | Bug bounty | Global | Paid | 500.00 | Report, transaction |
| 15 | Donations to projects on Giveth | Donation | Global | Paid | 4,000.00 | Transaction |
| 16 | yBold Lender Borrower Audit | Audit | yAudit | Unpaid | 25,000.00 | Payment pending |
| Total paid and committed | 463,196.53 |
| Attribution | Paid (USDC) | Unpaid commitments (USDC) | Total (USDC) |
|---|---|---|---|
| DAO-ops | 174,146.53 | 25,000.00 | 199,146.53 |
| Global | 239,050.00 | 0.00 | 239,050.00 |
| yAudit | 0.00 | 25,000.00 | 25,000.00 |
| Total | 413,196.53 | 50,000.00 | 463,196.53 |
The two unpaid audits are existing approved commitments included in this reconciliation. The DAO’s acceptance acknowledges the full amount paid and committed under the current fund.
5.2 Replenishment
Allocate a fresh $250,000 worth of stablecoins from the Treasury for the next batch of discretionary expenses, in addition to the $463,196.53 of existing expenses and commitments reconciled in Section 5.1.
| Item | Amount (USD accounting value) |
|---|---|
| Original allocation | 250,000.00 |
| Existing paid expenses and approved commitments | 463,196.53 |
| Payments and commitments above the original allocation | 213,196.53 |
| New allocation requested for the next batch | 250,000.00 |
The $50,000 of unpaid audits remains part of the existing commitments. The new $250,000 allocation is available for the next batch of expenses in full.
The Treasury will transfer the new $250,000 allocation to the dedicated funding distributor once it is deployed and ready to receive funds. This is a non-script proposal: deployment and Treasury transfers require separate transactions.
5.3 On-chain fund and spending records
Deploy a new funding distributor to hold the next allocation of discretionary funds. Deploy a wrapper contract that yChad can call to approve and record each spend.
Spending records will combine minimal on-chain data recorded through the wrapper with supporting metadata stored on IPFS, following the approach used for DAO governance proposals. The DAO-ops team will decide which fields belong on-chain and which belong in the linked IPFS metadata as part of implementation.
Each complete spending record, across its on-chain data and linked IPFS metadata, must include:
- A title and description of the expense.
- The payment amount, token and recipient.
- Attribution to a specific team or to Global for a DAO-wide expense.
- A reference to the corresponding YBC Snapshot proposal.
Through the wrapper, yChad will record the expense and assign funding through the distributor. Each payment will draw down the discretionary fund’s available balance. The contracts will restrict the spending function to yChad.
Publish the deployed contract addresses and explain the spending flow before funding the distributor. Historical entries will remain distinguishable from new payments so that reporting does not count the same expense twice.
5.4 YBC signaling and yChad ratification
For each proposed spend:
- Publish a proposal on Snapshot describing the expense, amount, recipient and Team or Global attribution.
- YBC members vote to signal support or opposition.
- Following a supportive result, yChad decides whether to ratify the spend by executing the transaction through the wrapper.
Snapshot records the YBC’s position. It does not control the fund or execute a payment, and a supportive result does not compel yChad to spend. yChad remains responsible for the final spending decision.
The Snapshot rules are:
| Parameter | Rule |
|---|---|
| Voting power | YBC voting power |
| Voting period | At least three days (72 hours) |
| Approval | Simple majority of voting power cast For or Against: For must exceed Against |
| Quorum | None |
| Ties | A tie does not produce a supportive result |
The Snapshot space and its YBC voting-power configuration will be published before the process begins. These rules apply to YBC spending signals. Regular on-chain DAO governance remains responsible for replenishment under its own voting rules.
5.5 Reporting and future replenishment
Every future top-up must go through an on-chain DAO proposal accompanied by a report of expenditure since the previous replenishment. The report must reconcile the opening balance, funding received, spending and remaining balance, with Team or Global attribution and transaction references.
A dashboard will follow the on-chain implementation so that DAO participants can review the fund balance and spending history. Reporting must remain available through the proposal records, on-chain transactions and linked IPFS metadata while the dashboard is being developed.
The expenditure table and transaction references form part of this proposal’s Markdown content. Publishing that content to IPFS preserves the version reviewed by voters. The live spreadsheet remains a working reference; later spreadsheet changes do not amend the published proposal. Linked reports remain external unless separately archived with the publication.
6. Vote
Do you support accepting the $463,196.53 reconciliation of paid expenses and existing approved commitments, allocating a fresh $250,000 for the next batch of discretionary expenses, and implementing the on-chain accounting and YBC signaling process described in this proposal?
- For: Accept the reconciliation and approve the new $250,000 allocation and implementation described above.
- Against: Reject this proposal.
References
- YIP-88: Governance Overhaul, DAO Restructuring: YIP-88: Governance Overhaul: ⓵ DAO Restructuring, Section 5.5.1.
- Discretionary fund tracking: YIP-88 Discretionary Fund - Google Sheets, reviewed September 30, 2026.
- Expense reports and transaction references included in Section 5.1.