How Are Funds Managed and Secured in a DAO’s Treasury?

A DAO's treasury is a collection of funds, typically cryptocurrencies, held in a smart contract on the blockchain. These funds are collectively managed by the DAO's members and can only be accessed with the approval of the community through a formal proposal and voting process.

This process is encoded in the governing smart contracts, ensuring no single individual or centralized party can misuse the funds. Security relies on the robustness of the smart contract code and the integrity of the underlying blockchain.