Members & Thresholds
Introduction
Section titled “Introduction”Every Privacy Pump Private Multisig is governed by two core concepts:
- Members
- Thresholds
Together, they determine who can participate in the vault and how decisions are approved.
Understanding these concepts is essential before managing treasury funds.
What Is A Member?
Section titled “What Is A Member?”A member is a wallet address that participates in a vault.
Members can:
- Create proposals
- Approve proposals
- Reject proposals
- Participate in treasury management
- Access vault communication features
The permissions available to a member depend on the vault configuration.
Why Multiple Members?
Section titled “Why Multiple Members?”A vault can be managed by a single person.
However, many organizations prefer multiple members because it reduces the risk of a single individual controlling treasury funds.
Examples include:
- Startup teams
- Communities
- DAOs
- Investment groups
- Project treasuries
Multiple members create accountability and shared control.
What Is A Threshold?
Section titled “What Is A Threshold?”The threshold defines how many approvals are required before a proposal can be executed.
Think of the threshold as the minimum number of signatures needed to authorize an action.
Threshold Examples
Section titled “Threshold Examples”1 of 1
Section titled “1 of 1”- One member
- One approval required
Ideal for:
- Personal control
- Small private treasuries
2 of 3
Section titled “2 of 3”- Three members
- Two approvals required
Ideal for:
- Small teams
- Startup founders
- Community projects
3 of 5
Section titled “3 of 5”- Five members
- Three approvals required
Ideal for:
- Larger organizations
- Treasury management
- Higher security requirements
How Thresholds Improve Security
Section titled “How Thresholds Improve Security”Without a threshold system, a single compromised wallet could move all treasury funds.
Thresholds help reduce that risk.
An attacker would need to compromise enough members to satisfy the approval requirement before funds could move.
This creates an additional layer of protection for shared treasuries.
Example Approval Flow
Section titled “Example Approval Flow”Imagine a vault configured as:
3 of 5
A proposal is created to withdraw treasury funds.
The proposal requires:
- Member A approval
- Member B approval
- Member C approval
Once three approvals are collected, the proposal becomes eligible for execution.
The remaining members are not required.
Changing Members
Section titled “Changing Members”Members can be added or removed after vault creation.
Because membership directly affects vault security, these actions typically require approval through the proposal system.
Examples:
- Add a new team member
- Remove a departing contributor
- Rotate treasury signers
- Upgrade security requirements
Changing Thresholds
Section titled “Changing Thresholds”Thresholds are not permanent.
As organizations grow, the approval requirements may need to change.
Examples:
- Moving from 2 of 3 to 3 of 5
- Increasing security for larger treasuries
- Adjusting governance structures
Threshold changes are performed through proposals.
Privacy Pump’s Approach
Section titled “Privacy Pump’s Approach”Traditional multisig systems often expose extensive information about treasury participants.
Privacy Pump is designed around the principle that treasury management should not require unnecessary public exposure.
The platform combines governance controls with privacy-focused infrastructure to help protect:
- Treasury activity
- Member information
- Fund movement
- Internal coordination
while preserving a familiar multisig experience.
Best Practices
Section titled “Best Practices”For most teams:
Small Teams
Section titled “Small Teams”Recommended:
2 of 3
Provides redundancy while remaining easy to operate.
Medium Teams
Section titled “Medium Teams”Recommended:
3 of 5
Balances security and convenience.
Larger Organizations
Section titled “Larger Organizations”Recommended:
5 of 7 or higher
Provides stronger protection for large treasuries.
Members define who participates in a vault, while thresholds define how many approvals are required before actions can be executed.