# How Are Funds Managed and Secured in a DAO's Treasury? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

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## 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.

- [How Does a DAO Treasury Differ from a Corporate Treasury?](https://learn.greeks.live/path/how-does-a-dao-treasury-differ-from-a-corporate-treasury/)

- [How Does the Collective Behavior of Miners Create the Current Transaction Fee Market?](https://learn.greeks.live/path/how-does-the-collective-behavior-of-miners-create-the-current-transaction-fee-market/)

- [What Is the Relationship between a DAO and the Execution of a Smart Contract?](https://learn.greeks.live/path/what-is-the-relationship-between-a-dao-and-the-execution-of-a-smart-contract/)

- [How Do DAOs Generate Revenue to Fund Their Treasury?](https://learn.greeks.live/path/how-do-daos-generate-revenue-to-fund-their-treasury/)

- [What Is the Role of Community Monitoring in Detecting a Potential Hashrate Attack?](https://learn.greeks.live/path/what-is-the-role-of-community-monitoring-in-detecting-a-potential-hashrate-attack/)

- [Can a DAO Treasury Also Be Secured by a Multisig Wallet?](https://learn.greeks.live/path/can-a-dao-treasury-also-be-secured-by-a-multisig-wallet/)

- [How Does a Decentralized Autonomous Organization (DAO) Structure Attempt to Mitigate Smart Contract Risk?](https://learn.greeks.live/path/how-does-a-decentralized-autonomous-organization-dao-structure-attempt-to-mitigate-smart-contract-risk/)

- [What Is the Concept of a Decentralized Autonomous Organization (DAO)?](https://learn.greeks.live/path/what-is-the-concept-of-a-decentralized-autonomous-organization-dao/)

## Glossar

### [Treasury Funds](https://learn.greeks.live/area/treasury-funds/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Asset ⎊ Treasury Funds are the aggregated pool of digital assets, often including the native token and stablecoins, held and managed by a decentralized autonomous organization for operational needs, development, and strategic reserves.

## Discover More

### [How Is a "Cash-Secured Put" Different from a Naked Put?](https://learn.greeks.live/path/how-is-a-cash-secured-put-different-from-a-naked-put/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is a "Cash-Secured Put" Different from a Naked Put?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Lens-Reflecting-Impermanent-Loss-Dynamics-in-Decentralized-Finance-Yield-Farming.webp)

Cash-secured put has dedicated cash collateral equal to the strike price; a naked put relies on margin, increasing leverage and risk.

### [What Is 'Impairment Risk' in the Context of a DeFi Treasury and How Is It Mitigated?](https://learn.greeks.live/path/what-is-impairment-risk-in-the-context-of-a-defi-treasury-and-how-is-it-mitigated/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is 'Impairment Risk' in the Context of a DeFi Treasury and How Is It Mitigated?](https://learn.greeks.live/wp-content/uploads/2025/10/Tokenized-Asset-Bifurcation-Visualizing-Synthetic-Option-Hedging-Mechanism-Dynamics.webp)

The risk of the treasury's value dropping too low to meet obligations, mitigated by diversification and converting native tokens to stable assets.

### [What Is the Concept of 'Real Yield' and How Can a Treasury Generate It?](https://learn.greeks.live/path/what-is-the-concept-of-real-yield-and-how-can-a-treasury-generate-it/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Concept of 'Real Yield' and How Can a Treasury Generate It?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Colliding-Liquidity-Pools-and-Gamma-Hedging-Mechanisms-in-DeFi-Derivatives.webp)

Yield generated from actual protocol revenue, paid in non-native assets, generated by providing fee-earning services like lending or swapping.

### [How Does the UTXO Model of Bitcoin Relate to the Concept of 'Spent' Funds?](https://learn.greeks.live/path/how-does-the-utxo-model-of-bitcoin-relate-to-the-concept-of-spent-funds/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the UTXO Model of Bitcoin Relate to the Concept of 'Spent' Funds?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Parity-Violation-in-High-Frequency-Crypto-Derivatives-Settlement-Mechanisms.webp)

Spent funds are UTXOs consumed as inputs, which is the moment the full public key is revealed on the blockchain, increasing preimage risk.

### [Define 'Impermanent Loss' in the Context of DAO Treasury Management](https://learn.greeks.live/path/define-impermanent-loss-in-the-context-of-dao-treasury-management/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Define 'Impermanent Loss' in the Context of DAO Treasury Management](https://learn.greeks.live/wp-content/uploads/2025/10/Bifurcated-Glass-Prisms-Reflecting-Volatility-Skew-in-Decentralized-Finance-Mechanisms.webp)

The temporary loss incurred by a liquidity provider when the price of their deposited assets changes compared to just holding them (HODLing).

### [How Is Basis Risk Typically Managed in a Rolling Options Hedge Strategy?](https://learn.greeks.live/path/how-is-basis-risk-typically-managed-in-a-rolling-options-hedge-strategy/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is Basis Risk Typically Managed in a Rolling Options Hedge Strategy?](https://learn.greeks.live/wp-content/uploads/2025/10/Bifurcated-Polychromatic-Enclosures-Simulating-Decentralized-Exchange-Order-Book-Separation.webp)

Careful timing and monitoring of the spread between expiring and new contracts to minimize transaction costs and market gap.

### [Explain the Concept of 'Greeks' in Options Trading and Their Relevance to DAO Treasury Risk](https://learn.greeks.live/path/explain-the-concept-of-greeks-in-options-trading-and-their-relevance-to-dao-treasury-risk/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Explain the Concept of 'Greeks' in Options Trading and Their Relevance to DAO Treasury Risk](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Geometrical-Decomposition-of-Digital-Asset-Volatility-Surface-and-Option-Contract-Structures.webp)

Mathematical measures (Delta, Gamma, Theta, Vega) quantifying an option's price sensitivity to asset price, time, and volatility.

### [How Do Options and Futures Contracts Relate to a DAO's Treasury Risk Management?](https://learn.greeks.live/path/how-do-options-and-futures-contracts-relate-to-a-daos-treasury-risk-management/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Do Options and Futures Contracts Relate to a DAO's Treasury Risk Management?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Modeling-of-Decentralized-Exchange-Liquidity-Pool-Mechanisms-and-Option-Strike-Price-Configurations.webp)

Derivatives like options and futures are used for hedging asset price volatility and generating yield through premium collection.

### [How Is Collateral Risk Managed in Traditional Options Clearing Houses?](https://learn.greeks.live/path/how-is-collateral-risk-managed-in-traditional-options-clearing-houses/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is Collateral Risk Managed in Traditional Options Clearing Houses?](https://learn.greeks.live/wp-content/uploads/2025/10/Geometric-Abstraction-Modeling-Latent-Volatility-Surface-Structure-in-Decentralized-Finance-Ecosystem.webp)

Through initial margin, daily mark-to-market, variation margin calls, and a mutualized default fund to guarantee all contract settlements.

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**Original URL:** https://learn.greeks.live/learn/how-are-funds-managed-and-secured-in-a-daos-treasury/
