How Does a Multi-Sig Wallet Enhance Security for DAO Treasury Management?
A multi-signature (multi-sig) wallet requires a minimum number of pre-selected private keys to sign a transaction before it can be executed. This enhances security by preventing any single individual from unilaterally controlling or draining the DAO's treasury.
It enforces a collective, controlled authorization process for large fund movements.
Glossar
Multi-Sig Wallet
Security ⎊ A Multi-Sig Wallet, short for multi-signature wallet, is a critical security primitive requiring a predefined number of private keys, or signatures, out of a total set to validate and execute any outgoing transaction.
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.