Transfer of Stablecoin Reserves to Fund Operations and Network security

DAO Governance
1

Summary

This proposal authorizes the transfer of approximately $1.1M in stablecoins from the DAO and NF-controlled treasuries to fund core Neutron Foundation operations.

The purpose is to maintain sustainable funding for network security, audits, and ecosystem development without liquidating NTRN holdings during current market conditions.

Scope

The transfer includes the following funds:

Source Asset Amount ($)
DAO Treasury USDC.axl ~472K
DAO Treasury USDC ~84K
Neutron DAO Treasury Management USDC ~540K
Total ~1,096,000

Justification

  • Preserve NTRN Allocation:

    The Foundation was initially funded via NTRN tokens. Given current market prices and volatility, it is more prudent to hold NTRN for long-term sustainability and governance alignment, while using stablecoins to fund short- and medium-term operational needs.

  • Network Security & Ecosystem Health:

    Network security costs grow in proportion to TVL and activity. Stable funding is required to continue sponsoring audits, maintain infrastructure, and compensate white-hat devs with the bug bounty program.

  • Audits and bug bounties:

    The Neutron Foundation has sponsored dozens of audits for Astroport, Margined, Valence, and other ecosystem partners, and funded an extensive bug bounty program.

    To date, $292,000 USD has been paid to white-hats across 21 paid reports, including:

    • 11 Critical (avg. $24,909)

    • 5 Medium (avg. $2,500)

    • 5 Low (avg. $1,100)

Implementation

If approved, the DAO will authorize the transfer of ~$1.1M in stablecoins (USDC.axl + USDC) from the DAO Treasury and Neutron DAO Treasury Management multisig to the Neutron Foundation operational wallet here: https://daodao.zone/dao/neutron1n3520gtlntlljfcz7dgjdvuttvjpytdehqstgc6clp7vc8uvkqks4hhg99

Voting Options

  • YES — Approve the transfer of stablecoins to fund Neutron Foundation operations and network security.

  • NO — Reject the transfer of stablecoins to fund Neutron Foundation operations and network security.

  • ABSTAIN — You wish to contribute to the quorum but formally decline to vote either for or against the proposal.