diff --git a/contracts/contracts/group_treasury/src/lib.rs b/contracts/contracts/group_treasury/src/lib.rs
index 278b60c..eb84738 100644
--- a/contracts/contracts/group_treasury/src/lib.rs
+++ b/contracts/contracts/group_treasury/src/lib.rs
@@ -23,18 +23,37 @@ pub struct GroupTreasuryContract;
 
 #[contractimpl]
 impl GroupTreasuryContract {
-    /// One-time initialisation. Sets the admin and sets up the balances map and members set.
-    pub fn initialize(env: Env, admin: Address, _token: Address) {
+    /// One-time initialisation. Sets the admin, the approval `threshold`, and sets up the
+    /// balances map and members set. `threshold` is the number of approvals required to
+    /// execute a withdraw proposal and must be at least 1.
+    pub fn initialize(env: Env, admin: Address, _token: Address, threshold: u32) {
         if env.storage().instance().has(&DataKey::Admin) {
             panic!("already initialized");
         }
+        if threshold == 0 {
+            panic!("threshold must be at least 1");
+        }
         env.storage().instance().set(&DataKey::Admin, &admin);
+        env.storage()
+            .instance()
+            .set(&DataKey::Threshold, &threshold);
+        env.storage()
+            .instance()
+            .set(&DataKey::ProposalCount, &0u32);
         let balances: Map<Address, i128> = Map::new(&env);
         env.storage().instance().set(&DataKey::Balances, &balances);
         let members: Vec<Address> = Vec::new(&env);
         env.storage().instance().set(&DataKey::Members, &members);
     }
 
+    /// Returns the configured approval threshold.
+    pub fn get_threshold(env: Env) -> u32 {
+        env.storage()
+            .instance()
+            .get(&DataKey::Threshold)
+            .expect("not initialized")
+    }
+
     /// Admin-only: Add a new member to the treasury.
     pub fn add_member(env: Env, member: Address) {
         let admin = require_admin(&env);
diff --git a/contracts/contracts/group_treasury/src/storage.rs b/contracts/contracts/group_treasury/src/storage.rs
index bdfc58c..e51a794 100644
--- a/contracts/contracts/group_treasury/src/storage.rs
+++ b/contracts/contracts/group_treasury/src/storage.rs
@@ -5,6 +5,32 @@ pub enum DataKey {
     Admin,
     Balances,
     Members,
+    Threshold,     // u32: approvals required to execute a withdraw proposal
+    ProposalCount, // u32: total proposals created (also next id source)
+    Proposal(u32), // WithdrawProposal by id
+}
+
+#[contracttype]
+#[derive(Clone, Debug, Eq, PartialEq)]
+pub enum ProposalStatus {
+    Active,
+    Passed,
+    Rejected,
+    Executed,
+}
+
+#[contracttype]
+#[derive(Clone)]
+pub struct WithdrawProposal {
+    pub id: u32,
+    pub proposer: Address,
+    pub to: Address,
+    pub token: Address,
+    pub amount: i128,
+    pub approvals: u32,
+    pub rejections: u32,
+    pub status: ProposalStatus,
+    pub expires_at: u64,
 }
 
 #[contracttype]
diff --git a/contracts/contracts/group_treasury/src/test.rs b/contracts/contracts/group_treasury/src/test.rs
index 9da316f..7817cd5 100644
--- a/contracts/contracts/group_treasury/src/test.rs
+++ b/contracts/contracts/group_treasury/src/test.rs
@@ -59,7 +59,7 @@ fn setup(env: &Env) -> (Address, Address, Address, Address) {
 
     let contract_id = env.register(GroupTreasuryContract, ());
     let client = GroupTreasuryContractClient::new(env, &contract_id);
-    client.initialize(&admin, &token_id);
+    client.initialize(&admin, &token_id, &1);
 
     (contract_id, token_id, admin, member)
 }
@@ -79,7 +79,7 @@ fn test_double_initialize_panics() {
     let (contract_id, token_id, _admin, _member) = setup(&env);
     let client = GroupTreasuryContractClient::new(&env, &contract_id);
     let other = Address::generate(&env);
-    client.initialize(&other, &token_id);
+    client.initialize(&other, &token_id, &1);
 }
 
 #[test]
@@ -160,7 +160,7 @@ fn test_non_admin_cannot_withdraw() {
 
     let contract_id = env.register(GroupTreasuryContract, ());
     let client = GroupTreasuryContractClient::new(&env, &contract_id);
-    client.initialize(&admin, &token_id);
+    client.initialize(&admin, &token_id, &1);
 
     let recipient = Address::generate(&env);
     // admin.require_auth() inside withdraw will fail — no auth context set up.
@@ -197,7 +197,7 @@ fn test_multi_token_deposits_tracked_separately() {
 
     let contract_id = env.register(GroupTreasuryContract, ());
     let client = GroupTreasuryContractClient::new(&env, &contract_id);
-    client.initialize(&admin, &xlm_id); // initialize with XLM for compatibility
+    client.initialize(&admin, &xlm_id, &1); // initialize with XLM for compatibility
 
     // Deposit XLM and USDC
     client.deposit(&member, &xlm_id, &40_000);
@@ -262,7 +262,7 @@ fn test_non_admin_cannot_add_member() {
     let token_id = env.register(mock_token::MockToken, ());
     let contract_id = env.register(GroupTreasuryContract, ());
     let client = GroupTreasuryContractClient::new(&env, &contract_id);
-    client.initialize(&admin, &token_id);
+    client.initialize(&admin, &token_id, &1);
 
     // non_admin tries to add member - should fail due to auth
     client.add_member(&member);
@@ -335,3 +335,32 @@ fn test_initialize_creates_empty_members_list() {
     let members = client.get_members();
     assert_eq!(members.len(), 0);
 }
+
+// ── Threshold Tests ───────────────────────────────────────────────────────────
+
+#[test]
+fn test_get_threshold_returns_configured_value() {
+    let env = Env::default();
+
+    let admin = Address::generate(&env);
+    let token_id = env.register(mock_token::MockToken, ());
+
+    let contract_id = env.register(GroupTreasuryContract, ());
+    let client = GroupTreasuryContractClient::new(&env, &contract_id);
+    client.initialize(&admin, &token_id, &3);
+
+    assert_eq!(client.get_threshold(), 3);
+}
+
+#[test]
+#[should_panic(expected = "threshold must be at least 1")]
+fn test_initialize_zero_threshold_panics() {
+    let env = Env::default();
+
+    let admin = Address::generate(&env);
+    let token_id = env.register(mock_token::MockToken, ());
+
+    let contract_id = env.register(GroupTreasuryContract, ());
+    let client = GroupTreasuryContractClient::new(&env, &contract_id);
+    client.initialize(&admin, &token_id, &0);
+}