Proposal Lifecycle
Every action inside a Privacy Pump vault is performed through proposals.
Whether updating vault settings, managing members, moving treasury assets, or executing private withdrawals, proposals provide a transparent approval workflow before any action can occur.
This ensures that no single member can unilaterally perform actions beyond the vault’s configured security threshold.
High-Level Flow
Section titled “High-Level Flow”Every proposal follows the same lifecycle.
Create Proposal | v
Member Review | v
Approval / Rejection | v
Threshold Reached | v
Executable | v
Execution | v
CompletedStep 1 — Proposal Creation
Section titled “Step 1 — Proposal Creation”A vault member creates a proposal.
Common proposal types include:
- Treasury transfer
- Protected withdrawal
- Add member
- Remove member
- Update threshold
- Update vault profile
- Update settings
At creation time, the proposal is recorded and becomes visible to all vault members.
Step 2 — Member Review
Section titled “Step 2 — Member Review”Members review the proposal.
This may involve:
- Reviewing treasury amounts
- Verifying recipients
- Checking governance changes
- Discussing decisions inside Vault Chat
No funds move during this stage.
No changes occur until sufficient approvals are collected.
Step 3 — Approvals and Rejections
Section titled “Step 3 — Approvals and Rejections”Members can vote on the proposal.
Possible actions:
Approve
Section titled “Approve”Signals support for the proposal.
Reject
Section titled “Reject”Signals opposition to the proposal.
Cancel
Section titled “Cancel”Available only to the proposal creator under certain conditions.
Approval Threshold Logic
Section titled “Approval Threshold Logic”Each vault defines an approval threshold.
Examples:
| Vault Threshold | Required Approvals |
|---|---|
| 1 / 1 | 1 approval |
| 2 / 3 | 2 approvals |
| 3 / 5 | 3 approvals |
| 4 / 7 | 4 approvals |
Once the approval threshold is reached, the proposal becomes executable.
Rejection Threshold Logic
Section titled “Rejection Threshold Logic”Every proposal also has an implicit rejection threshold.
A proposal is rejected when it becomes mathematically impossible to reach the required approval count.
Examples:
| Vault Setup | Approval Threshold | Rejection Threshold |
|---|---|---|
| 1 / 1 | 1 | 1 |
| 2 / 3 | 2 | 2 |
| 3 / 5 | 3 | 3 |
| 4 / 7 | 4 | 4 |
The exact calculation is explained in the Approval & Rejection Thresholds page.
Step 4 — Executable State
Section titled “Step 4 — Executable State”Once sufficient approvals have been collected:
Pending | v
ExecutableThe proposal is now authorized but has not yet been executed.
No funds move automatically.
A member must execute the proposal.
Step 5 — Execution
Section titled “Step 5 — Execution”Execution performs the requested action.
Examples:
Treasury Proposal
Section titled “Treasury Proposal”Transfers assets from the vault treasury.
Member Proposal
Section titled “Member Proposal”Adds or removes a vault member.
Settings Proposal
Section titled “Settings Proposal”Updates vault configuration.
Protected Withdrawal
Section titled “Protected Withdrawal”Initiates the private routing workflow.
Step 6 — Completed State
Section titled “Step 6 — Completed State”After execution:
Executable | v
ExecutedThe proposal becomes immutable and enters vault history.
Historical proposals remain available for auditing and review.
Proposal States
Section titled “Proposal States”Privacy Pump proposals move through several possible states.
Pending
Section titled “Pending”Waiting for approvals or rejections.
Executable
Section titled “Executable”Approval threshold reached.
Ready for execution.
Executed
Section titled “Executed”Action successfully completed.
Rejected
Section titled “Rejected”Rejection threshold reached.
Proposal permanently closed.
Cancelled
Section titled “Cancelled”Proposal closed by creator before completion.
Interaction With Vault Chat
Section titled “Interaction With Vault Chat”Many proposals are discussed before voting.
Typical workflow:
Vault Chat | v
Proposal Created | v
Discussion | v
Approval / Rejection | v
ExecutionThis keeps governance and communication inside the same platform.
Interaction With Arcium
Section titled “Interaction With Arcium”Certain proposal workflows may utilize the Arcium privacy layer for authorization and validation processes.
Arcium operates as a confidential computation layer between proposal activity and final execution decisions.
Interaction With Protected Withdrawals
Section titled “Interaction With Protected Withdrawals”Protected withdrawals add an additional privacy layer.
Proposal | v
Approval | v
Execution | v
Private Routing | v
RecipientThe proposal system authorizes the action.
The ZK Pool handles the private movement of assets.
Key Takeaway
Section titled “Key Takeaway”The proposal lifecycle is the governance engine of Privacy Pump.
Every significant vault action follows the same path:
Create | v
Review | v
Approve / Reject | v
Executable | v
Execute | v
CompleteThis structure ensures that vault actions remain controlled, auditable, and consistent with the vault’s configured security model.