[BIP-XXX] DAO Treasury Assets Migration

Governance General Proposal
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Summary

Separate governance and assets on the DAO multisig; send assets to kpk managed multisig. With the exception of the DAO’s working capital; it will remain where it currently is. At the same time, the kpk managed multisig’s owners will be replaced by the Balancer Foundation directors (3/4). Overall this increases security, speed of execution and capital efficiency.

Separation of Coin and State

Serious optimisation of processes on the DAO multisig has always been very tough, given the slow (secure!) signing cadence and high risk of compromising governance or losing assets. An example of this would be rebalancing some of its smaller asset positions into different assets (e.g. stablecoins or passive altcoins), or installing automation modules (e.g. the unexecuted BIP-715).

In an attempt to make the DAO multisig more manageable, it is proposed that we separate its governance authority from the assets it is holding. The most logical way to do so is to keep governance where it is (0x10A19e7eE7d7F8a52822f6817de8ea18204F2e4f), and to sweep all its assets to the @kpk managed multisig (0x0EFcCBb9E2C09Ea29551879bd9Da32362b32fc89). A big part of the DAO’s assets are there already; sending the remaining Ethereum assets over would make it easier for @kpk to manage and rebalance Balancer’s whole treasury. Some positions, such as the uncirculating $BAL or some positions already mandated by a previous BIP, will be left untouched by @kpk. These positions will thus be exempt from their management fee. @kpk will share a detailed overview of all to be migrated positions.

# Make Foundation Owner of kpk Managed Multisig

The kpk managed multisig can act faster because it has a module installed that is given permissions for certain pre-approved actions. However, giving these permissions and/or performing any non pre-approved actions still require the full signer set to enact. This creates the risk that moving all treasury assets to the kpk managed multisig doesnt solve the problem of slow signing.

It is therefore proposed that the signer set on the kpk managed multisig is replaced completely with the signer set of the Balancer Foundation multisig. These signers, the directors of the Balancer Foundation, are subject to votes from regular DAO governance. According to article 5.3 of Balancer’s Foundation Articles of Association: “The Token Holders have the power, by Governance Resolution, to appoint or remove Directors.” And with a threshold of 3 out of 4, it will make the multisig significantly faster in performing permission approvals and any ad hoc actions.

Working Capital

To provide a clear distinction between working capital and surplus assets, and to prevent the kpk managed portfolio from turning into an operational wallet, the working capital required by the DAO to pay service providers will (for now) remain in the DAO multisig. It will be replenished by (1) fees being collected from the protocol and, if necessary, (2) from results and/or principal capital currently in the kpk managed portfolio multisig. Further investigation is required to be able to move the working capital and its in and outflows to a separate, leaner multisig.

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Thanks for putting this proposal together and publishing it for public discussion, @gosuto. A few things I’d like to outline here for the community to fully understand the implications of this proposal:

  1. This vote could increase risk to the managed assets. While this risk is somewhat mitigated by the fact that 3,/4 signers are KYC’d professionals — arguably even better than a 6/10 multisig of anonymous signers — it’s important that voters make an informed decision.

  2. @kpk doesn’t have a formal contract with the Balancer Foundation. Their mandate for treasury management is based solely on on-chain governance (BIP snapshots). I’d really appreciate if we could move forward with a formal SLA and investment policy (or similar agreement) to clearly outline responsibilities and accountability prior to payload execution. Most likely, the Directors won’t be reviewing the merits of the permissions — they/we will effectively be blind-signing — so it’s crucial we’re careful here. We’re essentially giving KPK full control, so might as well add a couple of KPK signers as well (4/6).

  3. Will the Maxis still be providing technical review of the payloads under this new setup? If so, that also needs to be fully disclosed, ideally formalized in the SLA with the Foundation.

  4. The community should also investigate if a a secondary wrapper for the Treasury is needed, to avoid triggering any VASP (Virtual Asset Service Provider) implications under Cayman or BVI law. Managing our own funds isn’t an issue, but doing so on behalf of others could be. Ideally, it would be clear that the funds are now being managed under this new entity, and avoid confusion.

  5. Lastly, considering the DAO Treasury has low funds, and most assets are already inside the KPK-managed multisig — plus the need to fund operations in the short term — this “KPK Treasury” will likely need to be used to pay service providers and the stablecoin positions/strategies will need some adjustments very soon.

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due to points raised by @0xdanko (namely that using foundation signers might have vasp implications), the signer change has been removed from the current proposal. once there is more legal clarity there, a signer change can always be proposed separately.

also, a new section has been added in regards to working capital; funds needed within a timeline of three months or less in order to pay service providers. these funds will not migrate over for now, so that payments can still occur from the dao multisig itself.

lastly, @kpk has committed to provide an investment policy in a separate bip to formalise their mandate with the balancer dao.

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Thank you @gosuto. Fwiw, we are exploring options for a more robust framework for the DAO’s incorporated entities, that would fit these (and other) needs.

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Current State

As of June 16 2025, BalancerDAO’s main treasury wallets on Ethereum Mainnet and Arbitrum hold assets worth $5,598,748.19. For forum readability we present the holdings as aggregated buckets by asset type; the line-by-line position sheet (with token addresses, tx-ids, and valuations) is available in the linked working Google Sheet and will be kept up-to-date until execution.

Migration Overview
Native Token $2,756,237.90
LP $1,045,641.93
Stablecoin $537,566.98
ETH-Correlated $193,218.04
Legacy/Dust $45,947.52
Other $1,020,135.82
Total Migration Value ($) $5,598,748.19
Working Capital Portion $711,505.07

In order to define a clear and transparent migration path for these holdings, the next step of the process will assign each position to a management category based on its governance status, operational purpose, and available mandate. This categorisation will determine which positions can be actively managed post-migration, which will remain restricted, and which will require specific actions (such as consolidation or sale). The resulting categories will form the foundation for the concrete migration and execution plan that follows.

Categorisation of Positions

All treasury positions included in the migration are assigned to one of five management categories. This categorization defines the treatment of each position during migration and post-migration execution.

  • Restricted (Retained). Positions with explicit governance mandates that prevent active management. Migrated to the managed Safe, excluded from AUM and management actions.
  • Available for Management. Positions eligible for active management. Migrated to the managed Safe and included in AUM.
  • Working Capital. Stablecoin and ETH balances retained on the DAO multisig for operational expenses. Periodically refilled from the managed Safe on a quarterly basis.
  • Legacy (<$50k). Positions below $50,000 with no active governance mandate. Migrated and liquidated.
  • Reclassified Legacy (<$50k). Positions below $50,000 linked to outdated or cancelled mandates. These mandates are formally cancelled under this plan. Treatment of these positions will be further detailed in the next section.

The current distribution of positions by category is as follows:

Migration Category USD Value Number of Positions
Restricted (Retained) $3,855,111 8
Working Capital $711,505 6
To Migrate (Available for Management) $983,382 6
Legacy (<$50k) $4,800 2
Reclassified Legacy (<$50k) $29,768 2

The next section defines the specific actions to be applied to each category during migration execution.

Actions per Category

This section defines the actions to be applied to each category of treasury positions as part of the migration process. The execution approach is designed to ensure safety, clarity, and ease of review for all transactions: positions will be migrated in their current form wherever possible, avoiding complex dependencies or market-sensitive operations during the initial migration phase.

There are multiple types of actions that may be required depending on the position — including transfers, claiming, withdrawing, unwrapping, unlocking, or unstaking. To ensure predictable and verifiable execution, only static actions (those that do not introduce market risk or dynamic parameters) will be included in the initial on-chain migration payload. Actions that involve potential price impact, market volatility, or require post-transfer decision-making will be executed separately as part of the Post-Migration Execution Call.

The actions to be applied to each category are as follows:

  • Restricted (Retained): positions will be transferred to the KPK-managed Safe. They will remain excluded from active management, and no portfolio actions will be taken post-migration.
  • Available for Management (To Migrate): positions will be transferred to the KPK-managed Safe and included in AUM. Post-migration, these positions may be subject to rebalancing or repositioning through the Execution Call.
  • Legacy (<$50k): positions will be transferred to the KPK-managed Safe and consolidated — typically liquidated into stablecoins or ETH — through the Execution Call.

Working Capital

BalancerDAO’s operational expenses are currently estimated at approximately $250,000 per month, or $750,000 per quarter, based on the present budgeting structure. This working capital is required to cover payments to service providers, Foundation operations, and other approved DAO costs. The $750,000 figure is used here as a simplified reference but does not represent a fixed target.

The DAO multisig currently holds approximately $500,000 USDC on mainnet, along with additional Working Capital assets (ETH and USDC on other chains) that remain fragmented across networks.

Two Q2 funding proposals (totaling approximately $180,000) are pending execution. Based on previous funding patterns and current planning, it is expected that approximately $280,000 in new funding proposals for Q3 will also be submitted. As this figure is a projection, the exact amount may vary depending on future DAO decisions. If required, any delta will be transferred from the KPK-managed Safe to the DAO multisig to ensure sufficient Working Capital is available and DAO operations can proceed without delays.

The migration plan will apply the following approach to Working Capital:

  • The existing USDC balance on the mainnet DAO multisig will remain untouched during the migration process and will be used to fulfill the current and upcoming funding calls.
  • All other Working Capital components (ETH holdings and stables on other chains) will be migrated, bridged to mainnet, and consolidated into the KPK-managed Safe. This will enable efficient top-ups and allow non-operational Working Capital to be deployed into suitable yield strategies, providing additional income for the DAO.
  • Liquidity top-ups from the KPK-managed Safe to the DAO multisig will be performed on a quarterly basis to maintain Working Capital at a level consistent with the DAO’s operational needs. The target Working Capital range will be adjusted periodically through a formal forecasting process that considers DAO revenue, treasury income from non-operational activities, and the latest budgeting plans.
  • All updates to Working Capital forecasts will be communicated transparently via the forum.
  • Ratification of this migration plan also formalises this Working Capital management approach — no additional governance votes will be required to implement the process.

Reclassified Legacy Positions

As part of this migration, certain small legacy positions (<$50,000) that were previously linked to outdated or superseded governance mandates will be formally reclassified. This ensures clarity and consistency in the post-migration treasury structure.

Under this plan, these positions will be transferred to the KPK-managed Safe. The prior governance mandates associated with them will be considered fully superseded upon ratification of this migration plan. These assets will then be treated in the same manner as other Legacy positions — with the objective of consolidation or redeployment in alignment with the overall treasury strategy.

This approach allows the DAO to maintain a clean and up-to-date mandate structure, while ensuring that all positions — even those with older governance history — are actively incorporated into the modern treasury management framework.

The following positions fall under this category:

Position USD Value
stkMTA (Staked mStable) $11,379.99
BAL (Silo — not a utilized market) $18,387.52

Upon ratification of this plan, the prior mandates on these positions will no longer apply, and they will be processed as outlined above.

The next section will present the full set of on-chain transactions and post-migration actions required to execute this plan.

Final Action Tables

This section presents the full list of on-chain migration transactions and post-migration actions that are included in this plan. These actions represent the exact scope of what will be ratified by the DAO upon approval of this proposal.

The table below includes both:

  • The on-chain migration actions to be executed directly (transfers, claims, bridges, withdrawals)
  • The post-migration actions that will be performed during the Post-Migration Execution Call (such as rebalancing, liquidations, strategy allocations)

This ensures that all community stakeholders and signers have full transparency on the planned migration and execution steps.

Id Asset Blockchian Migration Action (for the DAO to execute) Post-migration plan (for kpk & Foundation to execute) Simulation
1 BAL Mainnet Transfer to Main Treasury Hold Tenderly
2 WETH Mainnet Transfer to Main Treasury (leaving 10 ETH in DAO Multisig) Allocate to ETH-yielding strategies Tenderly
3 COW Mainnet Claim vCOW (92,764.21 COW) and Transfer to Main Treasury Use as collateral Tenderly
4 USDT Mainnet Transfer to Main Treasury Allocate to USD-yielding strategies Tenderly
5 DAI Mainnet Transfer to Main Treasury Allocate to USD-yielding strategies Tenderly
6 Balancer V2 LPs Mainnet Transfer BPTs to Main Treasury Hold Tenderly
7 aBAL (AaveV3) Mainnet Transfer Aave wrapped BAL to Main Treasury Hold Tenderly
8 vFJO Mainnet Transfer to Main Treasury Allocate to USD-yielding strategies Tenderly
9 Av2-BAL (Across) Mainnet Transfer LP token to Main Treasury Hold Tenderly
10 sBAL (Silo) Mainnet Transfer to Main Treasury Hold Tenderly
11 MTA (mStable) Mainnet Withdraw and send to Main Treasury Allocate to USD-yielding strategies Tenderly
12 stETH Mainnet Transfer to Main Treasury Allocate to ETH-yielding strategies Tenderly
13 GTC Mainnet Transfer to Main Treasury Allocate to USD-yielding strategies Tenderly
14 ARB Arbitrum Transfer to Main Treasury (on Arbitrum One) Hold & Re-Delegate to kpk Tenderly
15 BAL Arbitrum Bridge to Main Treasury (on Ethereum mainnet) Hold Tenderly
16 WETH Arbitrum Bridge to Main Treasury (on Ethereum mainnet) Allocate to ETH-yielding strategies Tenderly
17 USDC Arbitrum Bridge to Main Treasury (on Ethereum mainnet) Allocate to USD-yielding strategies Tenderly
18 Balancer V2 LPs Arbitrum Transfer to Main Treasury (on Arbitrum One) Tenderly

The full list of transactions, including simulation links and references, is also available in the following document.

The next section will outline the Post-Migration Plan, including the scheduling of the Execution Call and ongoing treasury management commitments.

Post-Migration Plan

Following ratification of this migration plan, a Post-Migration Execution Call will be scheduled to take place within two weeks of the Snapshot vote. During this call, all market-sensitive and dynamic post-migration actions — including swaps, rebalancing, and liquidations — will be executed based on the migration plan approved by the DAO.

ARB token delegation will be preserved through the migration process to ensure uninterrupted governance participation.

After the execution is complete, the results of the Post-Migration Execution Call will be published on the forum for transparency and tracking.

In parallel, an updated permissions list will be prepared and submitted for DAO ratification. Once approved, this permissions update will allow ongoing treasury management actions — such as Working Capital refills and allocation adjustments — to be performed autonomously within the approved scope.

For other periodic actions — such as claiming vested tokens (e.g. SAFE, Fjord) or migrating legacy positions from other chains — KPK will monitor the treasury and propose these actions to the DAO as needed, in order to maintain high utilization of treasury balances. These actions will remain subject to DAO review and approval where required.

Finally, further phases of this migration — including positions on Polygon, Optimism, Base and other networks — are expected to follow after this Mainnet and Arbitrum migration is completed. Further community discussions may be required to define the scope and execution of these future phases.

Next Steps

  • After posting of this migration plan to the forum, a period of at least 5 days will be provided for community review and discussion.
  • Once feedback has been collected, and any required adjustments incorporated, the final on-chain migration payloads will be prepared.
  • The migration payloads for Mainnet and Arbitrum will be prepared and submitted as separate Snapshot proposals to ensure clear execution flow and minimize cross-chain dependencies
  • All migration payloads will be reviewed through the standard review process and Maxis security review prior to submission for vote.
  • Following security review, the proposal will be submitted for Snapshot vote. If approved, the migration transactions will be executed on-chain, and the Post-Migration Execution Call will be scheduled within two weeks of ratification.
  • The results of the Execution Call will be published on the forum.
    Subsequently, the permissions update for ongoing treasury management will be submitted to the DAO for ratification.
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The newly outlined approach by @kpk is really well thought out. Some minor details might need adjustment, but overall this is exactly what we have been looking for to achieve over the last couple of months: a simplified and cleaned up treasury with clear investemnt strategies to align with DAO funding and operations.

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There are a few other assets (dust) I’m not seeing in the spreadsheet, like GTO and D2D. Wouldn’t mind seeing a pivot on those, and would be great to have them liquidated into hard assets. It’s just hard for governance (DAO multisig) to handle these small amounts. Same for vesting positions and claims (like SAFE and FJO), like you mentioned, and likely other smaller airdrops in the future.

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Great flag @0xDanko!

We’ll include the transfer of the GTC balance from the DAO multisig and outline a post-migration plan to allocate it to USD-yielding strategies.

As for D2D, there’s essentially no liquidity to convert these tokens into a hard asset — there are no pools on Uniswap, and no meaningful routes on 1inch or CoW.

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Treasury Migration Payload for Ethereum Mainnet available in the following PR:

Tenderly Simulation:
LINK

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