Realms Arbitration Layer

A dispute resolution system for Realms DAOs on Solana

What this project does

Adds a safety layer to DAO treasury payouts. Instead of payouts executing immediately after approval, they enter a dispute window where community members can challenge suspicious transactions before funds leave the treasury.

The problem: DAOs need a way to catch malicious or mistaken treasury proposals before money is lost.

The solution: A challenge period with economic incentives (bonds) and neutral arbitration (AI or human resolvers).

What's included

• Safe Treasury Program — on-chain Solana program managing payout queues, challenges, and rulings
• Realms UI Integration — treasury management screens and proposal instructions built into the Realms interface
• AI + Human Arbitration — automated and manual dispute resolution workflows

How it works

1. Queue a payout

A DAO votes to send funds (or even NFTs). Instead of immediate execution, the payout enters a queue with a dispute window (e.g., 24 hours).

That is made possible because the DAO's treasury is held in a safe treasury vault rather than the ordinary treasury vault of Realms DAOs. The safe treasury receives instructions from DAO governance, but has a time period open for requesting arbitration if the transaction does not respect the DAO's Constitution. DAOs wanting to adopt this safety mechanism must opt-in / migrate their treasury.

2. Challenge window

Anyone holding the required token can challenge the payout by posting a bond. This freezes the payout and triggers arbitration.

3. Arbitration

A designated resolver (which is a DAO of AI agents or human arbitrators, onboarding arbitral bodies to web3) reviews the challenge and issues a ruling: Allow or Deny.

4. Resolution

• Allow → Payout executes, challenger loses bond
• Deny → Payout cancelled, challenger gets bond back

UI Screenshots

Screenshots captured by automated browser agent running against local test network. Better quality and demo to be updated.

Treasury page with Dispute Safe controls

The treasury screen shows:

• Safe Policy status (dispute window, bond requirements)
• Payout queue with challenge status
• Action buttons: Queue Payout, Exit Custody

Proposal creation with Dispute Safe instructions

DAOs can create proposals using new instruction types:

1. MigrateToSafe — set up dispute policy (bond amount, dispute window, resolver address)
2. QueuePayout — add a payout to the queue (SOL or SPL tokens)
3. ChallengePayout — challenge a queued payout
4. ExitFromCustody — withdraw funds from safe custody

What's working

✅ On-chain program — Safe Treasury program builds and deploys
✅ Localnet demo — Full bootstrap script creates test DAOs and payout fixtures
✅ UI integration — Instructions render in Realms proposal interface
✅ Treasury screens — Dispute Safe custody panel displays in treasury view

What's in progress

⏳ End-to-end flow — Full challenge → ruling → release cycle in browser (currently script-based) ⏳ Production readiness

Feature Categories Successfully Tested

Repository	Core Feature Categories	Test Types	Status
arbitration-layer (Safe Treasury)	• Policy initialization & updates • Treasury registration & management • Native/SPL vault operations • Payout queue/release lifecycle • Challenge bond mechanisms • Ruling record/appeal/finalize • Governance proposal integration	• Unit tests (state enums) • On-chain program tests • Formal verification (Certora) • Localnet script validation • Integration flow tests	✅ Working
ai-arbitration-dao	• CLI command orchestration • Agent runtime & health monitoring • Proposal creation/voting/execution • Resolver binding & authorization • Ruling payload validation • Governance adapter integration • Observability & logging • Worker environment reconciliation	• Unit tests (18 test modules) • Integration tests • CLI contract validation • Runtime environment tests • Secret redaction tests • JSON output validation	✅ Working
human-arbitration-dao	• Realms DAO bootstrapping • Role-based access control • CLI interface for operations • Web voting interface • Case management workflows • Treasury operations	• CLI integration tests • Web interface tests • Role model validation • Bootstrap deployment tests	✅ Working
governance-ui	• DisputeSafe instruction registration • Treasury account store management • Transaction state handling • Router history tracking • Delegator selection • Vote stake registry • Proposal creation UI	• UI component tests • Store state tests • Instruction registration tests • SSR page rendering (all routes)	✅ Working

Test Coverage Summary

• Total Test Files: 60+ across all repositories
• Core Flows Validated: Treasury operations, Arbitration workflows, Governance integration, DAO bootstrapping

Test evidence across workstreams

• arbitration-layer/: on-chain program tests, localnet script validation, and formal verification WIP artifacts under certora/.
• governance-ui/: UI and integration-oriented test coverage for Realms arbitration surface changes.
• ai-arbitration-dao/: unit/integration/e2e scaffolding and command-level validation paths for agent runtime flows.
• human-arbitration-dao/: CLI modules with test coverage and executable scripts for arbitration operator workflows.

Realms prize alignment

1. Authority-First Orgs (strong onchain authority) – DAO Constitution and policy enforcement plus AI/Human arbitration DAOs demonstrate onchain authority and escalation paths for disputes.
2. Governance Builders (tooling + governance systems) – Safe Treasury program to govern executable payout challenge flows for Realms DAOs.
3. Realms Extensions (integrations/plugins) – governance-ui modifications slot arbitration features directly into the existing Realms surface (in v1, but happy to integrate in v2).

Repo structure

• arbitration-layer: Core Realms Arbitration Layer workstream (program + deployment tooling WIP).
• governance-ui: Realms UI v1 fork/extension surface for arbitration support.
• ai-arbitration-dao: DAO scripts/runtime scaffolding for AI arbitrators.
• human-arbitration-dao: Human arbitrator DAO tooling (CLI).

Program IDs

Program	ID
safe-treasury	9yMpZraAc4pFvg4DXTT3rhvUvdh2xGQUdiNLQ1bwEhCD
spl-governance (mainnet binary)	GovER5Lthms3bLBqWub97yVrMmEogzX7xNjdXpPPCVZw

Demo quick commands

# Terminal 1 — start validator (leave running)
bash arbitration-layer/scripts/localnet/start-local-validator.sh

# Terminal 2 — bootstrap + seed + demo
bash demo-hackathon.sh

Instead of running the above, you can check a sample output in demo-hackathon-output.txt.

Disclaimer

This is an early prototype and should not be placed into production without thorough vetting/testing/auditing.