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.