# Dao Fund

The DAO fund is the second line of defense on top of the Bond Mechanism. The DAO fund is controlled by the Developers and **will later move to a governance system** to vote on using funds in certain areas of the project and outside including investment, marketing etc.

Information about the DAO is as follows:

* When CHILI is below peg buybacks will be initiated by the DAO
* When CHILI is above peg the DAO will sell CHILI to to accumulate stables and prepare to buyback if the peg goes below 1. 
* The DAO fund will hold a range of assets at the discretion of the core team
* The fund may or may not invest in safe projects to earn yield and grow itself at the discretion of the team.