Trustless Work
  • Welcome
    • Why Escrows Matter
    • 🛤️Our Journey so Far
      • 🤔The Problem: Origins of Trustless Work
      • 👾The team comes together
      • 💡The Solution: Escrows
      • 🏆Key Milestones
        • 🌠DraperU Stellar Astro Hacker House: A Pivotal Moment
        • Launching the API V1 at ETH Pura Vida Hackathon
      • 🚀Current Programs
        • 🌟DraperU Embark Program
        • 💻OD Hack Campaigns
      • 🛠️Vertical Development
      • 🔮Future Vision
  • 📌Start Here
    • ☀️About Trustless Work
      • Vision and Mission
      • Team
  • ⚒️Understanding Smart Escrows
    • 🥸Smart Escrow Design
      • What does a Smart Escrow "look like"?
      • Roles in Trustless Work
      • Escrow Lifecycle
        • Initiation Phase
        • Funding Phase
        • Complete phase
        • Approval phase
        • Release phase
        • Dispute Resolution
    • 💵USDC: The Stablecoin Powering Trustless Work
    • 🌟Stellar & Soroban: The Backbone of Trustless Work
  • 💻Developer Resources
    • 🚀Smart Escrow API
    • Quickstart
      • Integration Demo Project
        • Getting Started
        • Entities
        • Configuration
      • dApp locally
      • API Fundamental Code
    • API Reference
      • Introduction
      • Authentication
        • Request Api Key
      • Deploy
        • Initialize Escrow
      • Escrows
        • Schema
        • Fund Escrow
        • Get Escrow by Contract ID
        • Resolve Dispute
        • Change Milestone Status
        • Change Milestone Flag
        • Change Dispute Flag
        • Release Funds
        • Update escrow properties
      • Helpers
        • Set Trustline
        • Send Transaction
        • Get Multiple Escrow Balance
    • 🧰Essential Tools for Developers
      • Stellar Wallets
        • Freighter Wallet
        • Albedo Wallet
        • xBull Wallet
        • Rabet Wallet
        • Lobstr Wallet
        • Hana Wallet
        • Additional Resources
        • Troubleshooting & FAQs
      • How to Get Testnet Tokens
  • 🌍Use Cases by Industry
    • Marketplaces & E-commerce
    • Grants, Bounties, and Hackathons
    • P2P Exchanges and OTC Desks
    • Security Deposits
    • Milestone-based Freelance & Contract Work
    • Crowdfunding & Pre-orders
    • DAO Treasury & Working Group Budgets
    • Education & Online Courses
    • Subscription + Performance-based Retainers
  • 🤖Using the dApp
    • Step 1: Accessing the Trustless Work Dapp and Logging In
    • Step 2: Creating a Profile and Requesting an API Key
    • Step 3: Creating an Escrow
    • Step 4: Funding an Escrow
    • Step 5: Marking a Milestone as Done ✅
    • Step 6: Approving the Milestone
    • Step 7: Releasing the Payment
    • Resolving Disputes
  • 🏴‍☠️Community
    • 🌎Spotlight: Kindfi
    • 🛣️Roadmap: The Journey Ahead
    • Contributor's Guide
    • 📂Open-Source Templates & Developer Tools
  • ✒️Background & Theory
    • 📘Core Concepts & Escrow Glossary
    • 🎒Historical Context
      • 📜Escrow History:
        • 🗿Ancient to Colonial Era
        • 🏦Banking Era (19th - 20th Century)
        • 💻The Digital Era and Online Escrow
      • ⛓️Blockchain Era: Smart Escrows
  • Links
    • ⚒️Trustless Work dApp
    • 🌐Trustless Work Website
    • 📣Telegram Chat
    • 💎Only Dust Profile
    • 👩‍💻Swagger for API
    • 📜Github
  • 📢Appendices
    • Contact and Support
    • Notion for Startups
    • Meru
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  1. Use Cases by Industry

DAO Treasury & Working Group Budgets

PreviousCrowdfunding & Pre-ordersNextEducation & Online Courses

Last updated 1 month ago

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Decentralized Autonomous Organizations (DAOs) face significant challenges managing treasury funds, ensuring transparency, accountability, and efficiency in budget allocation for various working groups or sub-committees. Often, funds are either prematurely disbursed without clear milestone tracking or remain locked and inaccessible due to governance overhead. This leads to inefficiencies, potential misuse of funds, disputes, and governance friction.

Solution:

Trustless Work provides DAOs with an easy-to-integrate, blockchain-based escrow infrastructure that clearly defines milestones, roles, and permissions within each funding allocation. Using smart escrows, DAOs can securely allocate budgets to specific working groups or sub-committees, with funds automatically released upon completion and approval of defined milestones.

Benefits:

  • Enhanced Transparency: Each transaction and milestone status is transparently recorded on-chain, promoting trust and accountability.

  • Reduced Governance Overhead: Automated escrow conditions reduce frequent voting rounds for releasing funds, streamlining operations.

  • Improved Fund Management: Funds are only released when pre-agreed milestones are met, reducing risk and ensuring proper usage.

  • Easy Integration: Trustless Work's API and escrow management platform can be quickly adopted without extensive development or audits.

Typical Workflow:

  1. Initiation: DAO defines working group, budget amount, milestones, and assigns roles (Milestone Marker, Approver, and Release Signer).

  2. Funding: DAO treasury deposits funds into the smart escrow.

  3. Milestone Completion: Working groups complete tasks and mark milestones as delivered.

  4. Approval & Review: DAO-appointed approvers review milestone completions, approving or disputing them.

  5. Automated Release: Upon approval, funds are automatically released to the working group without additional governance delays.

Example Scenario:

A DAO allocates a quarterly budget to its Product Development Working Group using Trustless Work. The Working Group clearly outlines their deliverables (milestones) for the quarter. Funds remain securely held in escrow until deliverables are marked as complete by the group and approved by DAO reviewers. Once approved, the smart escrow instantly releases the allocated budget to the Working Group’s wallet, ensuring transparency, accountability, and streamlined budget management.

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