Can a DAO Treasury Also Be Secured by a Multisig Wallet?
Yes, a DAO's treasury, which holds the protocol's funds, is frequently secured by a multisig wallet. This prevents a single person or a simple majority vote from unilaterally accessing or spending the funds, ensuring that large expenditures or changes to the treasury require the consensus of multiple, trusted parties or a formal governance vote.
Glossar
Dao Treasury
Control ⎊ Dao Treasury refers to the pool of assets, often composed of protocol fees, native tokens, or various cryptocurrencies, managed collectively by the decentralized autonomous organization through on-chain voting.
Multisig Wallet
Security ⎊ Multisig wallets represent a cryptographic advancement in digital asset custody, demanding multiple private key authorizations to execute a transaction, mitigating single points of failure inherent in traditional single-signature schemes.