Live on TALLY --> Activate DAO ETH Held on Rari Chain Through Staking

Active Proposals v2 DAO
#1

Authors: StableLab / Kaf Reviewers: Anna Riabokon (RARI Foundation)

Abstract

This proposal authorises the Rari DAO to activate the ETH currently held in the DAO treasury on Rari Chain (expected to be ~24 ETH) by transferring it to a Foundation-controlled multisig for conservative deployment into ETH-denominated staking strategies.

This draft is an update to the earlier forum discussion titled “Exchange Rari Chain Treasury ETH for RARI.” Based on delegate feedback, the scope is narrowed to ETH activation via staking (not an ETH → RARI swap), with clear disclosure and reporting commitments.

This proposal does not authorise selling ETH, does not increase the DAO’s exposure to RARI, and does not define a long-term treasury allocation strategy.

Background & Motivation

The DAO treasury still holds ETH on Rari Chain that has remained operationally underutilised due to limited tooling and integration. Leaving ETH idle is inefficient, but swapping reserve assets into volatile governance tokens (or making broader allocation changes) can be premature without a wider strategy vote.

The goal of this proposal is intentionally narrow:

  • move idle ETH into an execution setup that enables deployment, and
  • stake it in a conservative manner to generate yield while preserving ETH exposure.

Prior Governance Context

This proposal is intended to be compatible with prior treasury governance decisions and execution patterns:

  • It is consistent with the DAO’s treasury-management direction established under the Treasury Management Empowerment Program (RRC-51), where treasury operations are executed with transparency and DAO oversight.
  • It follows established precedent for treasury movements executed via governance (e.g., prior on-chain treasury actions such as RRC-53).

Nothing in this proposal amends, replaces, or conflicts with those prior decisions; it is a discrete operational step focused on activating idle ETH.

Scope

If approved, this proposal authorises:

  1. Transferring the DAO’s ETH balance held on Rari Chain (expected ~24 ETH) from the DAO timelock/treasury to a Foundation-controlled multisig (address disclosed prior to execution).
  2. Deploying that ETH into staking via one or more vetted partners.

Explicit Non-Goals

This proposal does not:

  • approve an ETH → RARI exchange or any other treasury swap,
  • authorise selling ETH,
  • authorise converting ETH into non-ETH-denominated assets (e.g., stablecoins, RWAs, or other tokens),
  • define or change long-term treasury allocation strategy,
  • bypass future governance decisions.

Any broader treasury changes must be proposed and voted on separately.

Proposed Approach

1) Transfer to Foundation Multisig (Execution Prerequisite)

  • The ETH will be transferred from the DAO treasury (timelock) to a Foundation-controlled multisig.
  • The multisig address will be disclosed publicly prior to execution.

2) Staking Deployment (Conservative, ETH-Denominated)

  • The Foundation will deploy the ETH into staking through one or more partners, prioritising:
    • best risk-adjusted yield,
    • best conditions (liquidity, counterparty risk, operational reliability),
    • capital preservation and ETH exposure.
  • Staking deployment may be implemented via mechanisms that preserve ETH exposure (e.g., native staking or ETH-denominated staking structures). Any material deviation from ETH-denominated exposure requires a separate DAO vote.

3) Disclosure & Reporting Commitments

Before deploying funds into staking (or as operationally necessary, immediately after execution but before funds are deployed), the Foundation will disclose:

  • the selected partner(s),
  • the staking mechanism / structure,
  • an expected yield range and key risks.

The Foundation will also report ongoing status through its regular transparency reporting and/or a dedicated forum update.

Governance Execution (Tally)

If approved, this proposal will be executed on Tally via a single on-chain action:

  • transfer the ETH held by the DAO treasury (timelock) on Rari Chain to the disclosed Foundation multisig.

All staking actions occur off-chain after the transfer, under the disclosure and reporting commitments above.

Risks & Mitigations

  • Market risk: ETH price volatility. Mitigation: maintaining ETH exposure; no forced sale.
  • Partner / smart contract risk: staking introduces counterparty and technical risk. Mitigation: partner selection prioritises risk-adjusted yield and reliability; disclosure of structure and risks.
  • Operational risk: execution and management occur off-chain. Mitigation: limited scope (single transfer), pre-deployment disclosure, and ongoing transparency reporting.

Summary

This proposal activates idle ETH held by the DAO on Rari Chain by enabling conservative staking deployment under transparent conditions. It preserves ETH exposure, improves treasury efficiency, and avoids broader allocation decisions or swaps that should be handled through separate governance.

Links

[RRC‑XX] Exchange Rari Chain Treasury ETH for RARI nitro-rari address details for 0x90BeDbEf93120bf7E4AcDdd6171053c3A12903F0 | Blockscout https://forum.rari.foundation/t/rrc-xx-treasury-management-empowerment-program/2433/19 https://www.tally.xyz/gov/rari-foundation/proposal/47341418812315197236363647704265413982409440694207646637491783113447116118933 Tally | RARI DAO (v2) | RRC-53: Proposal to support the “Return to Form” Group drop and Gallery event

Vote now: Tally | RARI DAO (v2) | Activate DAO ETH Held on Rari Chain Through Staking

Link to forum discussion: [RRC‑XX] Exchange Rari Chain Treasury ETH for RARI

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