How Does a Decentralized Autonomous Organization (DAO) Treasury Differ from a Traditional Corporate Treasury?
A DAO treasury is a pool of funds, typically held in a smart contract, controlled directly by the token holders through governance votes. Unlike a corporate treasury, which is managed by a board of directors or executives, the DAO treasury's spending is transparent and executed automatically by code once a proposal passes.
This structure removes the need for human intermediaries and ensures that all financial decisions are auditable and community-driven. The funds are often used for grants, development, and liquidity provision.
Glossar
Treasury
Reserves ⎊ Within cryptocurrency and derivatives markets, reserves represent the collateral backing synthetic Treasury instruments, often mirroring sovereign debt characteristics.
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.
Decentralized Autonomous Organization (DAO)
Governance ⎊ Decentralized Autonomous Organizations represent a novel framework for organizational structure, leveraging blockchain technology to enact rules encoded as transparent computer programs.