On-Chain Treasury Management with AI

Introduction

On-chain Treasury Management is a decentralized financial framework that leverages blockchain smart contracts, AI-driven analytics, and automated governance to manage and allocate treasury funds efficiently. This system ensures transparency, security, and optimal capital efficiency for decentralized organizations (DAOs), blockchain protocols, and enterprise treasury management.

NovaNet integrates AI-powered treasury optimization, allowing real-time fund distribution, risk assessment, and algorithmic treasury growth strategies. By using quantum-resistant cryptography (PQC) and AI-enhanced decision-making, NovaNet ensures secure, fair, and automated treasury governance.

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1. How On-Chain Treasury Management Works

Treasury management on NovaNet operates through smart contract automation and AI-powered fund optimization:

1.1 Treasury Smart Contract Infrastructure

• Decentralized Fund Storage – Treasury reserves are stored in a multi-signature, AI-automated smart contract.
• Algorithmic Fund Allocation – AI models dynamically adjust fund distribution based on governance rules and performance metrics.
• On-Chain Auditing & Transparency – Every transaction is publicly recorded on the blockchain, ensuring tamper-proof fund management.

Mathematical Model for Treasury Balance Update:

$$T_{new} = T_{old} + I - O$$

Where:

• $$T_{new}$$ = Updated treasury balance
• $$T_{old}$$ = Previous balance
• $$I$$* = Incoming funds (staking rewards, donations, investments)
• $$O$$ = Outgoing payments (grants, salaries, project funding)