PR with Payload
Introduction
Following the incorporation of a legal structure for onchain operations via governance resolution [BIP-863], the Balancer Foundation has established a new BVI company, wholly owned by Balancer OpCo Limited, named “Balancer Onchain Limited”.
This proposal formalizes the transition of all onchain operational responsibilities from the Balancer DAO to Balancer Onchain Limited as previously approved, establishes the Treasury Council for ecosystem oversight, and implements the necessary technical infrastructure changes to support this transition.
Balancer Onchain Limited, through engagement with Service Providers and multisigners, will be mandated to:
- Collect and distribute protocol-generated fees
- Manage and execute token reward distributions
- Implement governance proposals by executing payloads
- Distribute revenue to Balancer OpCo Limited via dividends
- Subcontract or perform other operations as designated by its Directors, the Balancer Foundation board, or DAO Governance
Motivation
The transition to Balancer Onchain Limited represents a critical evolution in the Balancer ecosystem’s operational structure, providing:
- Legal Clarity: Establishing a formal entity for on-chain operations helps manage regulatory and legal risks for ecosystem participants
- Operational Efficiency: Centralizing on-chain operations under a dedicated entity with clear service provider relationships improves execution
- Enhanced Oversight: The Treasury Council provides robust checks and balances while maintaining ecosystem alignment
- Risk Management: Proper legal structure and self-insurance fund protect major participants and service providers
Revised DAO Operations Structure
Hierarchical Safe System
The new structure implements a hierarchical safe system with clear separation of responsibilities:
Top-Level Safes
- DAO Multi-sig: Maintains DAO administrative permissions (unchanged)
- Treasury Safe: Controlled by Treasury Council, managed through Zodiac roles (KPK)
- Balancer OpCo Ltd Safe: Manages operational funding and dividend distributions to Balancer Foundation
- Balancer Onchain Ltd Safe: Central hub for on-chain operations, fee collection, and dividend distributions to Balancer OpCo Ltd
- BizDev Safe: Manages third-party incentives and partnership funds
- Operator Safe: Executes on-chain operations through third-party service provider
Operational Multisigs
All operational multisigs maintain a 1/2 threshold configuration with:
- Balancer Onchain Ltd Safe (Foundation Directors)
- Operator Safe (MAXYZ Service Provider)
This configuration applies to: Omni-sig, LM Safes, Gauntlet Safe, Fee Collector, and Aura Locker Safe.
Signer Group Definitions
To streamline operations and improve clarity, the following signer groups are established:
Treasury Council Members
- @0xDanko (0x122AFb4667C5f80e45721a42C7c81e9140C62FA4)
- @Xeonus (0xaa5af0dd9c52c773d36cdbc509a0b2a1ded4c196)
- @danielmk (0x606681E47afC7869482660eCD61bd45B53523D83)
- @mendesfabio (0x90347b9CC81a4a28aAc74E8B134040d5ce2eaB6D)
- @solarcurve (0x512fce9B07Ce64590849115EE6B32fd40eC0f5F3)
- @gosuto (0x11e450c72c2258ec792d5f64a263ecb18e8c0f06)
- @notsoformal (0xd17a9f089862351af82fa782435fac0f9e17786c)
Foundation Directors
- Balancer Foundation board members
BizDev Team
- Simon (0xc57b29CAc1a1CD4E8e678622D35459c4AF6F8b9c)
- Zekraken (0xafFC70b81D54F229A5F50ec07e2c76D2AAAD07Ae)
- Marcus BLabs (0xb7364Fca20EEC90f51b158C05199044AD362b675)
- Danko (0x122AFb4667C5f80e45721a42C7c81e9140C62FA4)
- Xeonus (0x7019Be4E4eB74cA5F61224FeAf687d2b43998516)
Operator
- Externally managed by the new MAXYZ service provider
Treasury Council Implementation
To ensure ecosystem interests are served and protected, this proposal implements the Treasury Council and deprecates the Ecosystem Council (overriding [BIP-658]).
The Treasury Council shall have the authority to:
- Object to any Corporate Resolutions or activities not deemed in the ecosystem’s best interests
- Oversee distributions, liquidations, or other material actions proposed by Directors
- Ensure alignment with Balancer governance resolutions
- Administer the self-insurance fund
Self-Insurance Fund Restructuring
Through previous governance resolutions ([BIP-14], [BIP-198], [BIP-658], a self-insurance fund of $1,250,000 USD was created (currently held by the DAO Treasury in BAL tokens). This proposal ratifies the expansion of this fund’s scope to protect:
- Balancer Labs
- Balancer Foundation
- Balancer OpCo Limited
- Balancer Onchain Limited
- Underlying service providers
The Treasury Council will oversee administration of this fund, with disbursements requiring:
- Verification by independent legal counsel
- Confirmation that costs are directly related to Balancer work
- Confirmation that costs are not eligible under other insurance coverage
- Direct movement from the treasury multisig (formerly known as KPK managed multisig) to recipients through Balancer Foundation
Technical Specifications
1. Safe Infrastructure Configuration
1.1 Top-Level Safes
DAO Multi-sig
- Address: 0x10a19e7ee7d7f8a52822f6817de8ea18204f2e4f
- Signers: DAO signers (remains as is)
- Threshold: 6/11
- Purpose: DAO admin permissions
Treasury Safe (KPK Managed)
- Address: 0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89
- Signers: Treasury Council Members (new signer set)
- Threshold: 5/7
- Purpose: Main treasury holding all assets and DeFi strategies
Balancer OpCo Ltd Safe
- Address: 0x3B8910F378034FD6E103Df958863e5c684072693
- Signers: Foundation Directors (remains as is)
- Threshold: 3/4
- Purpose: Receives grants for operational funding and distributes dividends to the Balancer Foundation (Treasury Safe)
Balancer Onchain Ltd Safe
- Address: 0x16b0056636Fcc85f92C49cD49a24bc519d4A1941
- Signers: Foundation Directors
- Threshold: 3/4
- Purpose: Entry point for all on-chain operations; fee recipient; receives grants for operational funding; and distributes fees in the form of dividends to its parent company Balancer OpCo Ltd
BizDev Safe
- Address: 0xF3B4829C8B9E2910C2396538F49a12b0c2475a7e
- Signers: BizDev Team
- Threshold: 3/5
- Purpose: Manages incentive funds and partnerships (grants)
Operator Safe
- Address: 0xBeF27037bC6311b96635E5e9Af3A73EBF6Ca8878
- Signers: Operator Team
- Threshold: 3/5
- Purpose: Controls operational multisigs
1.2 Operational Multisigs Standard Configuration
All operational multisigs will use the following standard configuration:
- Signers: Balancer Onchain Ltd Safe, Operator Safe
- Threshold: 1/2
- Purpose: Efficient execution with oversight
This applies to:
- Omni-sig Safe (0x9ff471F9f98F42E5151C7855fD1b5aa906b1AF7e)
- LM Safes (across all chains)
- Gauntlet Safe (0xf4A80929163C5179Ca042E1B292F5EFBBE3D89e6)
- Fee Collector (0x7c68c42de679ffb0f16216154c996c354cf1161b)
- Aura Locker Safe (0xf4A80929163C5179Ca042E1B292F5EFBBE3D89e6)
2. Fee Collection and Distribution
Revised protocol fee flow:
- Protocol fees will continue to be collected by the Fee Collector multisig
- Fees transferred to Balancer Onchain Ltd Safe
- Balancer Onchain Ltd Safe distributes:
- Dividends to Balancer OpCo Ltd Safe (and funds will from there flow to Treasury Safe for ecosystem reserves)
New Fee Collection Target
- The Balancer Onchain Ltd safe will be become the primary fee recipient target
- Update the Fee Distributor (0x7c68c42de679ffb0f16216154c996c354cf1161b) to redirect fees to the Balancer Onchain Ltd safe (previously fees were sent to the DAO)
- Transfer existing USDC (~$622k) from DAO multisig to Treasury Safe
3. Migration Plan
3.1 Treasury Safe Update
Current Signers to Remove:
- All existing DAO signers (11 addresses)
New Configuration:
- Signers: Treasury Council Members
- Threshold: 5/7
3.2 Operational Multisig Transitions
All operational multisigs (Omni-sig, LM, Gauntlet, Aura Locker) will transition to the standard operational configuration:
Signers to Remove:
- 0x119de05a00BD4e75C4aD6041b82d7afa984aB1B9
- 0xc4591c41e01a7a654B5427f39Bbd1dEe5bD45D1D
- 0x11761c7b08287d9489CD84C04DF6852F5C07107b
- 0x7019Be4E4eB74cA5F61224FeAf687d2b43998516
- 0xafFC70b81D54F229A5F50ec07e2c76D2AAAD07Ae
- 0x960bE2d20669E1b2bfc38dBC92bf1c440Cc60F9d
- 0x7c2eA10D3e5922ba3bBBafa39Dc0677353D2AF17
New Standard Configuration:
- Signers: Balancer Onchain Ltd Safe, Operator Safe
- Threshold: 1/2
3.3 Asset Migrations
The following assets will be migrated from LM safes to appropriate destinations:
| Chain | Safe Address | Asset | Amount | USD Value | Destination |
|---|---|---|---|---|---|
| Ethereum | 0x9ff471f9f98f42e5151c7855fd1b5aa906b1af7e | BAL | 46,091.11 | ~$60,122 | Treasury Safe |
| Mode | 0x9ff471f9f98f42e5151c7855fd1b5aa906b1af7e | WETH:MODE LP | - | ~$58,000 | BizDev Safe |
| zkEVM | 0xB59Ab49CA8d064E645Bf2c546d9FE6d1d4147a09 | USDC | 33,999.99 | $34,000 | BizDev Safe (via Polygon) |
| zkEVM | 0xB59Ab49CA8d064E645Bf2c546d9FE6d1d4147a09 | MATIC | 98,942.85 | ~$24,775 | BizDev Safe (via Polygon) |
| Polygon | 0xc38c5f97B34E175FFd35407fc91a937300E33860 | axlBAL:BAL BPT | - | ~$26,092 | Treasury Safe |
| Ethereum | 0xc38c5f97B34E175FFd35407fc91a937300E33860 | USDC | 20,872.55 | $20,873 | BizDev Safe |
| Mode | 0x9ff471f9f98f42e5151c7855fd1b5aa906b1af7e | MODE | 8,172,192 | ~$13,850 | BizDev Safe |
| Arbitrum | 0xc38c5f97B34E175FFd35407fc91a937300E33860 | USDC | 12,087 | $12,087 | BizDev Safe |
| Ethereum | 0xc38c5f97B34E175FFd35407fc91a937300E33860 | SAFE | 1,291.44 | ~$542 | Treasury Safe |
Special Notes:
- zkEVM positions to be migrated to Polygon due to chain shutdown
- MATIC to be upgraded to POL
- Positions under contract restrictions require special handling per existing legal agreements
4. Snapshot Governance Configuration
4.1 Space Ownership Transfer
- Current Controller: DAO Multi-sig (0x10a19e7ee7d7f8a52822f6817de8ea18204f2e4f)
- New Controller: Balancer Onchain Ltd Safe 0x16b0056636Fcc85f92C49cD49a24bc519d4A1941
Migration of DAO Treasury assets to the Managed treasury
Given the new mandate, we will take the opportunity to transfer any unvested position to the managed treasury wallet. These positions include the following tokens and balances:
| Token | Address | Amount (Wei) | Amount (Human Readable) | Destination |
|---|---|---|---|---|
| ETH | Native | 10020697538332403272 | 10.0207 ETH | 0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89 |
| USDC | 0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48 | 622188449304 | 622,188.45 USDC | 0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89 |
| COW | 0xDEf1CA1fb7FBcDC777520aa7f396b4E015F497aB | 12360147950649299098364 | 12,360.15 COW | 0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89 |
| aETHBAL | 0x2516E7B3F76294e03C42AA4c5b5b4DCE9C436fB8 | 101185869494681659750 | 101.19 aETHBAL | 0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89 |
| aBAL | 0x272F97b7a56a387aE942350bBC7Df5700f8a4576 | 58491555481023710958 | 58.49 aBAL | 0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89 |
| stETH | 0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84 | 1381061273405474 | 0.0014 stETH | 0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89 |
| anyBAL | 0xcb9d0b8CfD8371143ba5A794c7218D4766c493e2 | 20000000000000000000000 | 20,000.00 anyBAL | 0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89 |
4.2 Author Configuration
Remove Authors:
- xeonus: 0x7019be4e4eb74ca5f61224feaf687d2b43998516
- zekraken: 0x7c2ea10d3e5922ba3bbbafa39dc0677353d2af17
- zen-dragon: 0xff0281256b2a478905b79895c1a2038a679e1751
Add Authors:
- Operator EOA: 0x58865c1B463Fd2772cD50EB50976A07FaE3Dc6F1
- Foundation EOA: 0x122AFb4667C5f80e45721a42C7c81e9140C62FA4
4.3 Snapshot Treasury Display
- Update Snapshot to display Treasury Safe (0x0efccbb9e2c09ea29551879bd9da32362b32fc89) as primary treasury
Implementation Timeline
Phase 1 - Immediate upon approval (Days 0-3)
- Update fee splitter configuration
- Initiate asset migrations from LM multi-sigs
Phase 2 - Within 7 days
- Complete all operational multisig signer swaps
Phase 3 - Within 14 days
- Complete all asset migrations from LM multisigs
- Update Treasury Safe signers
- Finalize Snapshot author changes
- Verify all transfers and configurations
- Transfer Snapshot space ownership (via DAO multi-sig)
- Transfer USDC to Treasury Safe (via DAO multi-sig)
Risk Mitigation and Verification
Verification Steps:
- All transfers executed in batches with verification between phases
- Treasury Council to review and approve each major transfer
- Maintain detailed transaction logs for audit purposes
Emergency Procedures:
- Treasury Council maintains override capability on critical infrastructure
- Self-insurance fund remains available for unforeseen complications
- Balancer Onchain Ltd Safe can intervene in emergency situations or swap out the operator if needed
Governance Actions
Upon approval of this proposal, the following actions will be authorized:
- Configuration of new safe infrastructure
- Transfer of all specified assets per migration table
- Update of all governance and fee collection mechanisms
- Implementation of Treasury Council oversight structure
- Deprecation of Ecosystem Council
- Expansion of self-insurance fund scope
Conclusion
This proposal establishes a robust operational framework for Balancer Onchain Limited while maintaining ecosystem alignment through the Treasury Council. The technical specifications ensure a smooth transition with minimal disruption to ongoing operations.
The transition represents a maturation of the Balancer ecosystem, providing legal clarity and operational efficiency while preserving the decentralized governance that defines our protocol. The Treasury Council will serve as guardians of ecosystem interests, ensuring that Balancer Onchain Limited’s operations remain aligned with community values and governance decisions.
References: