The protocol treasury has no human guardians. Its accounts on XRPL and Hedera are native multi-signature accounts whose signers are the validators’ DKG keys, and its published rule is the only authority over it:
Prevents unilateral fund access: a payment needs a threshold of validators
Pays only protocol roles (network fees, and activating protocol accounts such as deposit accounts and the runner pool), within monthly per-asset caps and above a minimum balance
Ensures operational transparency: the rule is published on Hedera HCS and every payment is on-chain
Is not controlled by DAO vote
What each validator checks before it co-signs:
The payment’s destination is a protocol role it resolves from its own reads
The HSuite DUNA, legally Project X Suite - Wyoming DUNA (a Wyoming decentralized unincorporated nonprofit association) and also called the HSuite DAO, is the legal and institutional structure for community coordination, education, ecosystem participation, Treasury stewardship, and the transition toward broader governance.
Legal and institutional: community coordination, education, ecosystem programs, Treasury stewardship and governance administration.
Governance model
Participation and decisions: the rules and processes for proposals, participation, voting, delegation, execution and accountability.
HSuite protocol
Network and products: the technical network, infrastructure, products and services that builders and applications use, Smart Engines included.
The DUNA is the entity; the governance model defines how that entity is governed. The DUNA does not replace the HSuite protocol, and administrative work the DUNA performs does not make its Board the permanent technical controller of the protocol. The protocol has its own on-chain governance, the protocol DAO, and the Board does not sign for the protocol treasury described above, which moves only under its published rule with a threshold of validator signatures.
Governance of the HSUITE issuer on XRPL is designed to pass to the HSuite DUNA, so the issuer’s rules and any changes to them answer to the community. That is about who decides the rules, not who holds a key. The issuer stays an XRPL account with its master key disabled, which only a threshold of validators can sign for (TSS-controlled issuer), and nobody, the DUNA included, can freeze or claw back HSUITE. See also the HSUITE migration FAQ.
The Transitional Board moves HSuite from informal coordination toward a documented, auditable and participatory governance structure. It is a stewardship and transition body, not the permanent final governance authority of the ecosystem.
Members: 9.
Decision threshold: 5 of 9 affirmative votes, for ordinary Board decisions and Treasury authorizations, unless a governing document sets a stricter requirement.
Conflicted matters: the 5 approvals must come from non-conflicted members.
Transition target: March 31, 2027.
No signature, transaction or technical action replaces the underlying approval.
The Board’s mandate:
Maintain an authority map
Oversee mission-aligned Treasury stewardship
Establish membership and voting rules
Define proposal, approval, execution and reporting processes
Maintain conflict-of-interest procedures
Support community, education and ecosystem initiatives
Prepare the handover to the broader governance model
Decision Log. Every material governance and Treasury decision is recorded with the matter considered, the date, the approvals received, any declared conflicts or abstentions, and the resulting action and its evidence. Public summaries keep decisions understandable while protecting keys, security procedures, confidential agreements and personal data.
Disclose. The member discloses the conflict before deliberation or approval.
Record. The disclosure is recorded in the Decision Log.
Inform. The conflicted member may give factual information when asked.
Recuse. The conflicted member does not vote on the matter.
Approve. The five affirmative votes must come from non-conflicted members.
If five non-conflicted approvals are not available, the matter is deferred or submitted to an independent review process. This applies especially to related-party payments, grants, compensation, commercial arrangements, Treasury transactions, and decisions involving entities connected to a Board member.
The DUNA’s Treasury is held and administered for mission-aligned purposes. It is not the personal property of Board members, token holders, contributors or service providers. It serves:
protocol and ecosystem development;
infrastructure and operational continuity;
community education and engagement;
grants and builder programs;
security, audits and professional services;
mission-consistent partnerships and initiatives.
Treasury activity follows documented approvals, role separation, appropriate security controls, and an auditable record from decision to execution.
Holding a token is not the same as being a member:
Token holder: a person or entity that holds HSUITE.
Member: a participant who meets the eligibility and validation requirements set by the DUNA’s governing rules.
Voting participant: an eligible member authorized to vote on a specific decision under the applicable voting and record-date rules.
Holding HSUITE does not, by itself, create legal membership, voting rights, profit or dividend rights, or a claim on Treasury assets. The membership framework will define eligibility, validation, participation rights, record dates, dispute procedures, and how token-based participation relates to legal membership.
Governance foundation (current). Formally confirm the nine-member Board; record responsibilities and conflict disclosures; maintain the authority map and Decision Log; operate the 5-of-9 approval process.
Participation framework. Publish membership and voting eligibility rules; establish participant validation; define the proposal, discussion, voting and delegation processes; implement record-date or snapshot procedures where applicable.
Operational governance. Activate the initial governance workflow; connect approvals to execution and evidence; publish community-facing governance reporting; review Board authority and delegations.
Handover or sunset, by March 31, 2027. A transition assessment recommends one of: sunset the Transitional Board; narrow its remaining responsibilities; transfer its responsibilities to the operational governance model; or propose a limited extension with a defined scope, justification and end date. Any extension should be approved through a documented governance process.
The objective is not decentralization by declaration, but accountable governance demonstrated through rules, participation and verifiable operations.