Why Is Speculation Generally Viewed as Irresponsible for a Core DAO Treasury?
A core DAO treasury's primary mandate is financial stability to ensure a long operational runway and fund development. Speculation introduces high, unnecessary risk that could jeopardize the entire project's existence.
The community expects responsible stewardship, not high-risk trading, of shared resources.
Glossar
Operational Runway
Horizon ⎊ The operational runway, within cryptocurrency derivatives and options trading, denotes the temporal window during which a trading strategy or position remains viable and profitable, considering prevailing market conditions and inherent risks.
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.
Financial Stability
Objective ⎊ Financial stability refers to a state where the financial system is resilient to shocks, can smoothly facilitate the allocation of resources, and effectively manage risks.
Speculation
Objective ⎊ Speculation involves taking positions in financial derivatives based on forecasts of future price changes, aiming to generate profits from short-term market volatility.