Noncustodial Treasury

Every Agentic Venture on Umia is backed by a noncustodial onchain treasury. The founding team has neither custody nor control over these funds at any time, all treasury actions are governed exclusively by decision markets and pre-configured parameters.

This page is a practical guide for founders on how the treasury works day-to-day.

How the Treasury Works

When a Tailored Auction completes, the raised funds flow directly into an onchain treasury smart contract deployed on the venture's chosen chain. This contract is the financial backbone of the Agentic Venture , since it holds all assets, enforces governance decisions, and handles disbursements.

The treasury contract is governed by two mechanisms:

1. Pre-configured rules set at entity formation (e.g., monthly disbursements, team allocations).
2. Decision markets for any changes or actions beyond the pre-configured scope.

Monthly Disbursements

At entity formation, the founding team specifies a monthly operational budget. This covers development costs, infrastructure, marketing, and other go-to-market expenses.

How It Works

• The disbursement amount is defined during umia venture init and encoded into the treasury contract.
• Funds are released automatically on a monthly cadence to a designated wallet.
• No governance proposal is required for scheduled disbursements, as they execute as part of the contract's base logic.
• The team can draw from this budget flexibly throughout the month.

Changing the Budget

If the team needs to increase (or decrease) the monthly disbursement. For example, to hire additional contributors or scale infrastructure, they must submit a governance proposal. This proposal enters a decision market and is resolved within 48 hours.

The market evaluates whether the budget change is expected to positively impact the token's value. If the market approves, the treasury contract updates the disbursement parameters automatically.

Treasury Balance and Tracking

Since the treasury lives onchain, its balance and transaction history are fully transparent and verifiable by anyone.

What's Visible

• Current balance: total assets held in the treasury contract.
• Disbursement history: every monthly payment with amounts and timestamps.
• Decision market outcomes: all governance-approved treasury actions with their market results.
• Token holdings: if the treasury holds tokens from other ventures or assets.

Founders can check treasury status through the CLI:

umia venture status

Token holders can verify the treasury state directly onchain or through the Umia platform interface.

Treasury Actions via Decision Markets

Any action beyond scheduled disbursements requires a governance proposal resolved through a decision market. Common treasury actions include:

Budget Adjustments

Increasing or decreasing the monthly operational budget as the venture scales or pivots.

One-Time Expenditures

Large purchases, partnerships, grants, or strategic investments that fall outside the regular budget.

Token Operations

Minting new tokens (e.g., for a follow-on raise or strategic partnership) or burning tokens from the treasury's own holdings.

Compensation Changes

Adjusting founder or team compensation packages, adding performance-based incentives tied to token price milestones, or onboarding new team members with token allocations.

Strategic Investments

Deploying treasury assets into other protocols, providing liquidity, or acquiring complementary projects.

Liquidation and Dissolution

The ultimate protection for token holders: at any point, anyone can propose to liquidate the treasury and dissolve the organization.

How Liquidation Works

This mechanism ensures that if a venture is no longer delivering value, whether due to market changes, team performance, or strategic misalignment, the community can recover their remaining capital rather than watching it deplete.

When Might Liquidation Be Proposed?

• The team has exhausted its runway without meaningful traction.
• Market conditions have fundamentally changed and the thesis is no longer viable.
• The community believes the remaining treasury is worth more distributed than invested.

Strategic Spinoff

Alternatively, rather than dissolution, a venture can spin off from the Umia legal framework. A spinoff proposal through decision markets can transition the project to:

• A fully private entity
• A traditional corporate structure
• An IPO-track company
• Any other organizational form the community approves

This ensures ventures aren't locked into the Umia structure permanently, as the framework is designed as a launchpad, not a cage.

Key Principles for Founders

Plan your budget conservatively. Set an initial monthly disbursement that covers your core needs. It's easier to propose an increase with demonstrated traction than to start too high.

Communicate proactively. Token holders govern through decision markets, and well-informed markets make better decisions. Regular updates on spending, milestones, and plans build trust and improve governance outcomes.

Use proposals strategically. Don't submit treasury proposals for trivial amounts, batch related requests when possible. Each proposal consumes community attention and decision market liquidity.

Embrace transparency. The noncustodial model is your greatest asset for building trust. Lean into it, share treasury dashboards, spending breakdowns, and roadmap updates publicly.