What Is the Difference between a Token-Gated DAO and a Multi-Sig DAO?
A token-gated DAO uses the ownership of a specific governance token to grant voting rights and membership. Decisions are made by the collective votes of token holders.
A multi-sig (multi-signature) DAO relies on a small, pre-selected group of signers, often key individuals, who must cryptographically approve transactions to execute decisions. The token-gated model is more decentralized, while the multi-sig model is more centralized and often used for treasury management or initial phases.
Glossar
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.
Multi-Sig
Authorization ⎊ The multi-signature (Multi-Sig) construct, prevalent across cryptocurrency, options, and derivatives markets, represents a conditional access protocol requiring multiple approvals for a transaction or action.
Dao
Governance ⎊ A Decentralized Autonomous Organization, or DAO, represents a new form of organizational structure where decision-making authority is distributed among token holders rather than concentrated in a central entity.
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.