What Role Does a Multisig Wallet Play in DAO Treasury Security?
A multisig (multi-signature) wallet requires a minimum number of pre-selected key holders (signers) to approve any transaction before it can be executed. This prevents any single individual from unilaterally accessing or moving the treasury funds, significantly reducing the risk of internal fraud, hacking, or single points of failure.
Glossar
Multisig Wallet
Security ⎊ Multisig wallets represent a cryptographic advancement in digital asset custody, demanding multiple private key authorizations to execute a transaction, mitigating single points of failure inherent in traditional single-signature schemes.
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.