The safe way to earn with your Bitcoin.

# **Executive Summary** The IG multi-sig still holds ~**393k** T = ~$**7100** from our previous budget. In our previous budget request, we stated: “*Further, we request that in the event that the amount upon receipt by the IG is >4% below the requested budget, that a singular “top-off” transaction be created and executed by the TG to reconcile the deficit.*” At the time of receipt by the IG, the tokens transferred were worth ~$**34,945, (**$**4,555** below the requested amount). Therefore, as part of this budget, we request that the remaining $**4,555** be transferred to the IG. In addition, the IG is requesting discretionary funding of $**65,945** (for a total of $**70,500)** from the Threshold Treasury for the remainder of Q4 2022 and Q1 2023. New holdings would equal approximately ~$**77,500**. This discretionary budget will be primarily used for: * Threshold Support Moderator * Purchase of GRT * DAO2DAO/protocol integration efforts * Compensation for IG non-committee contributors * Daily operational and DAO tooling efforts (i.e. Notion website) * Tech support and mod group activities * Reimbursement to committee members for gas fees related to executing multi-sig transactions and other operational activities * Other USD-denominated expenses and reimbursements # **Integrations Guild Goals / Missions** The goal of the Integrations Guild is to support the launch of Thresholds’ flagship products and the integration of these products on various L1 and L2 protocols within DeFi: * tBTC v2 * Proxy Re-Encryption (“PRE”) * Community-led thUSD project As a newly formed protocol, Threshold will benefit from collaboration and partnerships with various DAOs and protocols. * Threshold Support ModeratorOn 7/26/22 @vict0r was appointed by the Integrations Guild as the [Threshold Support Moderator](https://forum.threshold.network/t/request-for-feedback-threshold-support-moderator-proposal/374/6) - This position incurs a monthly cost of $6500 to the IG. * Soliciting Integrations and use-cases for all Threshold Products. * Notion - This is an ongoing expenditure for the DAO, we expect that as the DAO grows, this cost will also grow. # **Use of Proceeds** Funds will be managed under the IG multi-sig and will be allocated towards the IG goals listed above as well as any discretionary incentives from partnerships/relationships focused activities that may fall outside of the initial IG scope. The funds will primarily be used for, but not limited to, the causes listed below: * Threshold Support Moderator * This position incurs a monthly cost of $**6500** to the IG. This budget period will cover 4 payments totaling $**26,000** * Soliciting Integrations and use-cases for all Threshold Products. * We request a total of $7**000** for Q4 ‘22 & Q1 ‘23 be dedicated to this end. * DAO Tooling/Notion * We request a total of $********3500******** for the quarter to be used for DAO tooling such as Notion, Sparkwave, etc as well as cover the cost for any additional Notion “licenses” as needed. * Sub-graph * As is listed in the IG OKR’s, we intend to solicit and fund the development of a Sub-graph + Front End portal to track deposits, withdrawals and operators. Similar to [allthekeeps.com](http://allthekeeps.com) for tBTC v1. The development cost for this is expected to total $**10,500** * Purchase of 10,000-15,000 GRT ($**700**-$**1100)** The price of T has fallen by ~39% since the receipt of our last budget - therefore, the IG intends to swap a to-be-determined portion of our new budget into stablecoins so that we will have the freedom to continue our mission without concern for financial obstacles or hurdles. This list is non-exhaustive, we feel that it is quite likely that over the duration of this quarter, we will incur additional expenses, and/or be subject to opportunities that may require additional funding. For this reason, we request a total budget of $**77,500** for the duration of Q4 ‘22 and Q1 ‘23. # **Expiry / Timing of Budget Spend** There is neither an expiry on the allocated budget nor an estimate of when the funds will be depleted. However, the IG ensures that these funds will be prudently and responsibly allocated toward activities and expenses that are consistent with its focus on strategy, partnerships, and protocol stewardship, and aligned with our OKR’s. # **Funding** We request that no less than 5 days from approval of this budget, the Treasury Guild execute on the transfer of $**65,945** USD paid in T to the IG Multi-sig. Further, we request that in the event that the amount upon receipt by the IG is >4% below the requested budget, that a singular “top-off” transaction be created and executed by the TG to reconcile the deficit.

**Vote type:** Token holder DAO Snapshot with a 5-day vote period **DAO-elected representative sponsors:** @JohnPackel @MrsNuBooty @ZeroInFo56 @nico186 **Overview:** As outlined in John and Ashley’s recent comments [here](https://forum.threshold.network/t/threshold-council-election-nominations-second-epoch/455/10?u=johnpackel) and [here](https://forum.threshold.network/t/threshold-council-election-nominations-second-epoch/455/19?u=johnpackel) on @Luna5's Forum post outlining the process for the upcoming election for Threshold’s Council, we recommended additional time and discussion before concluding the nomination period for Council members (originally scheduled for December 2, with voting starting December 5).* We subsequently worked with Luna to determine that: * 3 current Council members are not able to extend their service beyond 12/31/22 * There is support for the other 6 Council members extending their terms through February for continuity and onboarding * 2 current Council members have indicated they are willing to serve another 12-month term if nominated and elected** **Milestones and Deadlines:** Based on discussions on the Forum and in public meetings, there is support for updating the Council election process by: * Continuing nominations for Council through December 8 (please continue to do so on the original post [here](https://forum.threshold.network/t/threshold-council-election-nominations-second-epoch/455/19?u=johnpackel)) * Holding a Snapshot vote December 11 - 15 to fill 3 Council seats (who will serve January - December 2023)*** * Extending the Council term by 2 months of the 6 members who are able to stay * Holding a Snapshot vote in February for the remaining 6 Council seats (who will serve March 2023 - February 2024) This will give the full current Council the second half of December to welcome the 3 incoming members, provide continuity in January and February 2023 while those 3 are getting up to speed, and also add a staggered term feature to the Council that we’ve incorporated into our guilds for consistency. **Who Is Involved:** Threshold Council, Threshold community and work token holders _____ \* At the time of our 1st comment there were only 4 nominees with 3 days left in the nomination period, and the community wasn’t clear which existing Council members were interested and able to run for a second 12-month term. ** Reminder: anyone nominated by someone else and wanting to be on the ballot needs to post here accepting the nomination - so that the community has clarity and we can prepare the final list. *** The December 11th start for Snapshot vote for 3 Council seats is based on the need for this proposal to be live for 3 days and then to have a 5-day Snapshot period.

Threshold Network, and its applications (PRE and tBTCv2), have been audited by multiple third party firms. The audits are published on (https://threshold.network/about#audits) and we understand that a second audit of tBTCv2, with Trail of Bits, will be published soon. However, given the recent launch of tBTCv2's Chaosnet 0 and the upcoming launch of minting in January, it is our responsibility to take further steps to improve the networks' security posture. We propose establishing a public bug bounty on Immunefi (https://immunefi.com/bounty/immunefi/), a popular web3 bug bounty platform. A credible bug bounty program will attract additional security reviews from the white hat community and incentive responsible disclosure of security vulnerabilities, which is especially topical given the severity of recent bridge-related security vulnerabilities. We propose an initial schedule below, and request community and developer feedback on the amounts prior to moving this to snapshot: * Critical: Up to $500,000 in T tokens * High: Up to $50,000 in T tokens * Medium: Up to $5,000 in T tokens * Low: Up to $500 in T tokens If tBTCv2 achieves an extremely TVL, these amounts can be revisited and increased.