How Does a DAO Treasury Manage the Funds Raised from an IDO?
The funds raised, typically stablecoins or ETH, are deposited into the DAO's treasury smart contract. The treasury working group then proposes how to allocate these funds.
Common uses include providing protocol-owned liquidity, funding development, marketing, and diversification into non-native assets to manage risk. All significant allocations must be approved by a DAO governance vote.
Glossar
DAO Treasury Use
Allocation ⎊ DAO Treasury Use refers to the strategic allocation of a Decentralized Autonomous Organization's collective capital to fund various operational, developmental, and financial objectives.
Dao Treasury
Governance ⎊ A decentralized autonomous organization (DAO) treasury, particularly within the context of cryptocurrency and derivatives, represents a digitally managed pool of assets governed by a community through smart contracts.
Treasury Working Group
Mandate ⎊ A Treasury Working Group is a specialized, often semi-autonomous, committee or council within a decentralized autonomous organization (DAO) or blockchain project tasked with the strategic management of the project's financial reserves.