What Is the Maximum Recommended Percentage of a Treasury That Should Be Held in Its Native Token?

There is no universal maximum, but most financial experts and DeFi risk managers recommend that the native token exposure should not exceed 25-50% of the total treasury value. The remaining portion should be held in diversified, stable assets.

Holding more than 50% significantly increases impairment risk and governance centralization, compromising the protocol's ability to operate during a market downturn.