Fund Governance Integration
Fund Governance Integration defines how ZK OTC vaults are fully controlled by ZK DAO, ensuring that capital execution is inseparable from governance decisions.
In ZKFund, a fund vault never acts independently. Every meaningful action is the result of a governance-approved, proof-enforced process.
Purpose
Many on-chain funds fail at integration:
Governance exists, but execution is discretionary
Rules are defined, but managers can bypass them
Votes signal intent, but do not enforce outcomes
Fund Governance Integration exists to ensure that:
Governance decisions are binding
Execution authority is derived, not assumed
No actor can separate capital control from governance
Governance as the Single Source of Authority
In ZKFund:
ZK DAO is the only authority that can authorize fund actions
Fund managers, signers, and executors act only within DAO-approved constraints
There is no:
Emergency admin key
Trusted operator
Off-chain override
Authority flows strictly:
Governance → Execution Authorization → Settlement
Governance-Controlled Action Scope
ZK DAO governs:
Which actions a vault is allowed to perform
What parameters those actions may include
What thresholds are required for execution
When actions may occur
Examples:
Maximum withdrawal size
Allowed asset classes
Strategy allocation bounds
Cooldown periods between actions
The vault enforces these rules mechanically.
Proposal-to-Vault Binding
Every fund action originates from a proposal that is explicitly bound to a vault.
This binding ensures:
A proposal cannot affect multiple vaults
Proofs cannot be replayed across vaults
Governance scope is strictly enforced
Execution proofs reference:
DAO ID
Vault ID
Proposal ID
Execution epoch
Governance-Enforced Role Authority
Roles inside the vault are governed by ZK DAO.
Role assignment requires DAO approval
Role revocation follows the same process
Role permissions are immutable without governance
This prevents:
Silent role escalation
Backdoor authority creation
Hidden signer manipulation
Governance-Gated Capital Flow
Capital cannot move unless:
A proposal is finalized by ZK DAO
Execution thresholds are proven
Settlement constraints are satisfied
This applies to:
Swaps
Withdrawals
Allocations
Emergency actions
Even vault creators are bound by governance.
Governance Visibility vs Execution Privacy
Governance outcomes are:
Publicly verifiable
Cryptographically enforced
Execution details remain:
Private
Unlinkable
Non-traceable
This allows:
Public trust in rule enforcement
Private protection of strategy and capital
Failure Handling & Governance Control
If an execution fails:
The failure is logged via proof receipt
No partial state is exposed
Governance may propose corrective actions
All recovery flows remain governance-driven.
Why Integration Matters
Without tight governance integration:
Funds become discretionary
Privacy becomes a liability
LP trust erodes
With integration:
Funds behave predictably
Privacy is enforced by rules
Capital remains protected
Last updated