9.2 Treasury management

The ARX Treasury functions as the financial foundation of the network. It operates as a decentralized reserve that collects protocol revenues, staking penalties, and unallocated tokens, redistributing these assets solely based on DAO-approved proposals.

Primary Funding Areas

The Treasury is strategically utilized to ensure the network remains competitive, secure, and technologically advanced:

  • Ecosystem Growth: Direct grants for developers building "Mini-Apps," validator incentives, and specialized research initiatives that expand the core ARX infrastructure.

  • Operations & Security: Financing for high-performance relay and validator nodes, rigorous third-party security audits, and general infrastructure maintenance.

  • Marketing & Expansion: Funding global user acquisition campaigns, strategic B2B partnerships, and educational outreach to onboard the next generation of privacy-conscious users.

  • Liquidity & Stability: Management of DAO-controlled liquidity pools, exchange listings, and strategic buybacks to maintain token accessibility and long-term market balance.


Control and Oversight

To ensure the highest level of accountability, ARX employs a multi-layered oversight framework:

  1. On-Chain Transparency: Every treasury movement—from inflow to disbursement—is recorded on the public ledger, allowing real-time auditing by any community member.

  2. DAO Mandate: No funds can be released without a formal community vote, ensuring that expenditures align with the collective interests of token holders.

  3. Security Mechanisms: During the early stages of the network, Multi-Signature (Multi-Sig) safe-guards are implemented alongside timelocks to prevent unauthorized access while maintaining decentralized principles.

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Responsible Sustainability The Treasury is designed to hold a diverse basket of assets. By diversifying into stablecoins and protocol-owned liquidity, the ARX DAO ensures it can continue funding operations even during periods of high market volatility.

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