IOTA Network Fund Seeks Community Approval for Tangle DAO Investment

• If the Tangle DAO proposal is approved, around 42 million IOTA tokens, 700,000 USDT, and other reserves will move to an IOTA Infrastructure Fund.
• The DAO would dissolve, and a temporary three-person committee led by Linus Naumann with Yi-Wei Lin and WiWi as co-leads would oversee fund management and liquidation for six to eight months.

The IOTA community is preparing for the next stage in deciding the future of Tangle DAO’s assets. The new proposal, ‘SGP-0012 – IOTA Network Fund Proposal to Go All-In IOTA Infrastructure and Growth with Tangle DAO’, has successfully passed its second step, which is Phase 2 voting in the governance forum.

IOTA Community Gears Up For Phase 2 Voting On Tangle DAO

At this point, the proposal has passed its requirements and is proceeding to a formal governance vote on the Shimmer network. Voting is available directly via the Shimmer network, which started on August 20, 2025, at 15:00 CEST.

The process will take place in two phases. Then there is a seven-day pre-vote period, where token holders have the opportunity to vote beforehand. That phase runs from August 20-27. The counting process then commences on August 27 at 15:00 CEST where participants are expected to hold their Shimmer tokens in position, to gain as much voting power as possible.

The vote will conclude on September 3, 2025 at 15:00 CEST and the results will signify whether the plan will be implemented. Earlier, the community casted Phase 1 votes through Shimmer network via Firefly, and the poll closed at 12 a.m. CEST on Monday, August 18. Forum members at Trust Level 1 or above were eligible to vote. At the time of the vote, it was (71%) in favor, and (29%) against with a total of 151 voters having voted.

For context, the Tangle DAO debuted in 2023 following a community decision, the so-called Build vs Burn vote, and started with 54 million IOTA. It has since acted as a community treasury, which has financed projects on the Tangletreasury grant program. 

The initiative funded 25 projects of approximately 680,000 but almost half the “term budget” went unspent. An additional cost of 250,000 of overhead expenses also pointed to the difficulty of maintaining a wide-spectrum grant system within a rather young ecosystem.

The advocates of the new plan hold that the role of the DAO will have to transform to fit the current requirements of IOTA. In May 2025, IOTA Rebased was launched, the mainnet of which was based on MoveVM. In defence of SGP-0012, supporters said the bridges, oracles, exchange listings, custodial services, and education services are less developed.

What’s Next On Cards?

If the proposal passes with majority consensus, the Tangle DAO would transfer the greater part of current holdings, approximately 42 million IOTA tokens, 700,000 USDT, alongside other reserves to an IOTA Infrastructure Fund. This would fund the integration with exchanges and custodial services, the developer tools, the on-chain infrastructure, marketing campaigns, and compliance services. Only $100,000 will be retained under closure costs.

Governance would see a reduction as well. A new 3-person committee will be in charge of the fund and also liquidation of the DAO with Linus Naumann nominated as Program Lead and Yi-Wei Lin and WiWi as co-leads. Their authority would be limited, non-permanent (six to eight months) and decisions would be made on a two-out-of-three majority basis.