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What Is a Common Financial Risk Associated with DAO Treasury Management?

Poor diversification, often over-reliance on the native token, and inefficient capital deployment are key financial risks.
Greeks.Live30.10.25

What Is a Common Financial Risk Associated with DAO Treasury Management?

A primary financial risk is poor asset diversification, often holding the vast majority of the treasury in the DAO's native token. This exposes the DAO to extreme market volatility and systemic risk.

Another risk is inefficient capital deployment, where funds are not invested or managed to sustain the DAO's long-term operational needs.

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