What Is the Significance of “Tokenomics” in Managing a DAO’s Treasury?

Tokenomics refers to the economic structure and design of a DAO's native token, including supply, distribution, and utility. It directly influences the treasury's value and stability, as the treasury often holds a large portion of these tokens.

Effective tokenomics can incentivize participation, control inflation, and ensure the token's long-term value, which is vital for the treasury's purchasing power and operational capacity.