How Can a DAO Treasury Use Stablecoins to Mitigate Native Token Inflation Risk?

By diversifying a significant portion of its holdings into stablecoins (e.g. USDC, DAI), the DAO treasury creates a hedge against the inflation and volatility of its native governance token.

Stablecoins provide a reliable, non-volatile base of capital for operational expenses, ensuring the DAO's essential functions can continue even during market downturns or periods of high native token inflation.