RRC-XX-R: Treasury Structural Alignment for the Community Strategic Growth Fund (CSGF)

Based upon feedback from the Foundation to refine this proposal with the intent to not fragment the DAO treasury and to adhere to RRC-51, I’ve removed the creation of a CSGF multi-sig wallet from this proposal. Below is the revised version of this proposal, please continue to provide feedback and comments. This proposal will be published on Tally v2 on Sunday, October 26th for voting.


RRC-XX-R: Treasury Structural Alignment for the Community Strategic Growth Fund (CSGF)

Author: coffee-crusher

Abstract

This proposal serves as a crucial housekeeping measure to streamline the DAO’s financial commitments and ensure maximum capital efficiency, aligning resources with the new structure established by the Treasury Management Empowerment Program (RRC-51). It formally establishes the Community Strategic Growth Fund (CSGF) as a budgetary allocation and integrates the equivalent historical annual RARI token value of an optimized budget item to seed this new budget line item. This alignment ensures financial clarity, fully supporting the core objectives of RRC-51.

Motivation

The RARI DAO has just completed a major governance shift by implementing the Treasury Management Empowerment Program (RRC-51), establishing a more agile and proactive financial model. To enable the Foundation to fully utilize this new structure with maximum clarity and operational efficiency, this proactive structural alignment is required to ensure clarity for the 2026 fiscal year.

This proposal serves as a necessary proactive measure to:

  • Enhance RRC-51 Success: By proactively completing this structural housekeeping now, we ensure the new RRC-51 financial framework begins with maximum clarity, enabling the Foundation to seamlessly execute its new mandate.

  • Optimize Budget Clarity: The resolution regarding this general operational, fixed annual cost serves to streamline the baseline requirements for the Foundation’s upcoming 2026 budget submission, reflecting the DAO’s new, merit-based governance focus, demonstrating responsible and forward-thinking financial stewardship.

  • Resource Alignment: The transitioning resources create a dedicated, community-governed budgetary pool (CSGF) for future ecosystem growth, aligning capital deployment with the community’s highest-priority strategic goals.

Rationale & Benefits

This measure aligns perfectly with the established goals of improved efficiency and strategic clarity that underpinned the successful passage of RRC-51. By confirming this transition now, it provides clarity and constructive support to the Foundation and the community:

  • Proactive Support: The DAO is actively performing the necessary housekeeping to ensure the Foundation’s 2026 budget submission is unburdened and focused on the new treasury management mandate.

  • Fiscal Evolution: This measure formally re-aligns a resource allocation, moving it from a general operational budget item to a dedicated, RARI token-denominated strategic budget line item (CSGF) that is optimized to maximize future ecosystem growth.

  • Community Empowerment: The CSGF is established as a ring-fenced resource pool within the DAO Treasury, available to fund key initiatives that require direct RARI token governance allocation, reinforcing the DAO’s long-term strategic oversight function.

  • Agile Governance Timeline: This action ensures the financial structure is immediately ready to support subsequent governance actions and preserve strategic momentum.

Specifications

Upon passage, this proposal will enact the following changes: the establishment of the CSGF budgetary allocation is immediately effective, and the financial mandates take effect for the 2026 fiscal year:

  1. Formal Establishment of the Community Strategic Growth (CSGF) Budget: The CSGF is formally established as a dedicated budgetary allocation for strategic ecosystem growth initiatives. All funds allocated to the CSGF remain in the DAO treasury and are governed by the DAO. The Foundation will continue to execute fund transfers from the DAO Treasury (against this budget line) when directed by a successful DAO vote on Tally, fully supporting the DAO’s strategic direction.

  2. 2026 Budget Category Redirection: The DAO hereby resolves that the funding allocation previously designated for the legacy fixed-cost general governance and advisory services is permanently designated for the new CSGF budget line item and shall therefore not be included in the 2026 Operational Budget Proposal’s core operational lines.
    Note: This proposal does not affect the DAO’s Delegate Incentive Program or existing delegate RARI allocations. It also does not affect any existing agreements or funding allocations for the remainder of the 2025 fiscal year (October through December 2025).

  3. Initial CSGF Seeding: The previously designated annual DAO budget allocation for 2026 will be formally designated as the CSGF budget line item within the DAO Treasury. No funds will be transferred at this time. This action implements the spirit of RRC-51 by exercising strategic financial oversight. The RARI token calculation will use the 30-day Volume-Weighted Average Price (VWAP) (as of the day of the Tally submission) to ensure financial rigor and stability in the fund’s initial seeding.

  4. Financial Classification and Governance Integrity: The DAO affirms its commitment to transparent treasury management by establishing this resolution as the definitive and binding classification for the 2026 budgetary cycle. Accordingly, any subsequent proposal or financial line item seeking to utilize the funds designated for the new CSGF (e.g., any spending intended for services functionally redundant to the original legacy governance and advisory services) must be administratively classified as drawing from the CSGF budget line item and requires standard governance approval, thereby reflecting the DAO’s official designation of those funds.

  5. Budgetary Integrity Clause (Legacy Function Authority): To prevent the creation of redundant spending authority, and to ensure the most efficient use of DAO assets per RRC-51, the execution of the CSGF’s initial VWAP seeding is expressly conditional on the simultaneous and permanent revocation of any existing DAO resolution, contract authority, or budgetary line item that delegates or authorizes funds for the equivalent function of community ecosystem service provision and development.

Overall Cost

The net cost of this proposal to the RARI DAO Treasury is Zero (0). This proposal represents a financial restructuring, optimizing a pre-existing resource by dedicating it to the newly established Community Strategic Growth Fund (CSGF) budget line item. No new funds are requested or transferred from the Treasury.

Implementation Steps

Upon DAO approval, the Foundation is instructed to perform the following step:

  1. Budgetary Designation: The Foundation shall formally recognize the CSGF as a DAO-approved budgetary allocation within the DAO treasury, to be funded as specified in this proposal. The Foundation’s reporting and treasury management will reflect this new classification for the 2026 fiscal year.

Timeline

The proposed timeline for this governance action is as follows:

  • 14-Day Forum Discussion: To allow delegates to refine the proposal, reach consensus, and ensure maximum clarity for the Tally vote.

  • 5-Day Tally Vote: Standard voting period on the Tally platform.

  • 2-Day Execution Delay: Standard cooling-off period before execution.

2 Likes

Thank you to the delegates and the Foundation for the robust discussion on this proposal, I really appreciate everyone’s feedback and questions! :pray:

Given the Foundation’s critical need to prioritize the successful execution of RRC-51 and its new treasury management mandate, I believe that this proposal is currently preemptive. I understand, that pushing forward now could introduce complexity at a time when clarity is most important.

For that reason, I have decided to formally place this proposal on hold indefinitely. It will not be published for a vote on Tally, and will consider reintroducing a version at a future date if the timing is better aligned with our collective operational goals. Thk u!

3 Likes

Thanks for all your time spent on this and bringing it to the DAO for feedback and discussion. While it is being put on hold, I appreciate your diligence and work put in!

2 Likes