If there was ever a time to learn about how monetary funds are handled through a Blockchain Treasury on MEAN Fi, now is a good time.
The lack of transparency that exists in the traditional finance world today is what has driven a great percentage of investors and consumers towards crypto. Not many of these individuals understand how Blockchain treasury systems should operate. MEAN offers a great incentivized treasury that is community-run and allows for any project in crypto to do the same.
Why every crypto project should have its own community-run treasury!
Many different crypto projects offer their own range of services and benefits, but not many details on how they accomplish these goals, and few and far in between offer transparency in how they operate their treasury.
In this world we need trustworthiness. This article will explain how a treasury should function and how the community has a say in what happens with a treasury and how a treasury operates.
The importance of how blockchain projects set up their own transparent treasury allows for the existing revenue within a project to be fully accounted for and cannot be based on hype or mystique to fool the common investor. Transparent treasury management solves this problem by allowing the community to observe and vote on how the funds are used.
In basic terms, a treasury for a crypto project is community-controlled in the case where it is a DAO, as well as a decentralized system that is used for sustainable funding in blockchain development. Project proposals are sent to each treasury to be discussed and then voted on, which adds a great layer of governance as a discussion is held before treasury members cast their votes. The top-ranked projects are then funded via the treasury after community voting is finished. This allows for funding requests and project directives to be championed by the community and allows for the governance to be decentralized and kept transparent.
There are few projects that operate with a good treasury. Most are DAOs and when it comes down to it, very few of these DAOs offer real-world services. It is also good to be especially aware of the fact that not every crypto project uses a treasury or should.
Treasury Implementation
What is spent out of the treasury should be distributed towards fixed expenses, rewards to participants, and reserves. Members can have exclusive access to financial incentives such as liquidity pools that are encouraged through high rewards, compensation from cross-program summoning, refunds from promotional fees, and more. This is one example of incentives that can be offered to participants.
Fixed expenses cover what is needed to pay the developers, keep the app updated and running, and any additional expenses the project might need. Reserves are simply leftover funds after expenses are met, these funds then can be used as savings towards future expenses.
To Create a Project Treasury for your Crypto Project, DAO, or startup and to learn more about the great services MEAN Fi offers, please visit our website at www.meanfi.com
Want to pay your team in crypto? Then you have come to the right place!
Reach out to us today at contact@supermean.com and let us help you find a solution — which we are good at ;) on how to go about paying team members in crypto, or if it’s managing Treasuries — another one of our products or maybe it is to set up recurring buy of your favorite tokens! All of this is possible only on the MeanFi app — www.meanfi.com
Mean Finance is bringing financial freedom to people and businesses worldwide. Through the Mean Protocol, we provide real-time cash flows and crypto asset management solutions for businesses and institutions. Teams and organizations can easily setup their crypto corporate treasuries, issue investor’s vesting contracts and run their payroll operations with real-time payment streams.
Stay in touch with our progress every week, and join the DeFi revolution by checking our website, joining the Mean DAO Discord, or our official Telegram, and following @MeanFinance on Twitter.
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Originally published at https://medium.com on June 6, 2022.
