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How to fund a DAO proposal with Monero

Monero cannot enter most DAO treasuries directly: convert XMR into an asset the DAO accepts, then follow the proposal’s approved payment path.

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Cover artwork for How to fund a DAO proposal with Monero

Monero cannot usually fund a DAO proposal directly because most DAO treasuries accept tokens on other blockchains, not XMR. The route is to check what asset and wallet the DAO accepts, convert XMR into that asset, then send it through the payment path set out in the proposal.

Can a DAO accept Monero directly?

Only if the DAO has a process built to receive XMR. Most on-chain treasuries use smart contracts on networks such as Ethereum, while Monero transactions use a separate network and do not call those contracts.

That means a bridge alone may not be enough: it must deliver an asset the DAO can use, and the DAO must accept that asset. For details on moving Monero between wallets, see these steps for an XMR bridge swap; check whether the swap’s output is suitable for the DAO before sending funds.

What should you check before converting XMR?

Read the DAO’s proposal rules and treasury instructions first. Confirm the required network, token, destination address, payment schedule and whether funds go to the treasury, a multisig wallet or a recipient named in the proposal.

Then set the requested budget in the DAO’s accepted asset, not in an estimated XMR amount. XMR’s price can change between drafting a proposal and making payment, so state the amount the recipient must receive and who covers conversion and network fees.

  • Check whether the DAO accepts direct contributions or requires an approved proposal.
  • Confirm the precise token and blockchain for payment.
  • Ask whether payment goes to a treasury, multisig or project wallet.
  • Include fees, milestones and payment dates in the proposal budget.

How do you move from XMR to the proposal payment?

Convert XMR using a route that outputs the DAO’s accepted asset on the required network. A swap can exchange XMR for another token; a bridge can move an asset or its representation between networks. If a service combines those steps, verify the final token and network before approving the transaction.

After conversion, send a small test amount if the DAO’s instructions allow it, then verify that it arrived at the intended address before sending the balance. Monero’s wallet RPC documentation reports transaction details such as confirmations and whether funds are locked; wait until the transfer is usable before spending it.

Submit the proposal with the recipient, accepted asset, amount, schedule and payment conditions clearly stated. If it passes, follow the DAO’s execution process and retain the conversion and transfer records; the next step is the DAO’s vote or, for an approved proposal, its scheduled disbursement.

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