DAO Treasury/Balance Sheet Management

The first priority for many large protocol treasuries is to diversify a portion of assets into stablecoins. The stablecoin allocation should at least cover a few years of operating expenses for the treasury.

Collective asset management DAOs are seeded with some initial capital in the form of governance tokens and assets used to buy governance tokens. The initial treasury of a DAO consists of 500 governance tokens and 100 ETH if it mints 1,000 governance tokens and sells 500 for 100 ETH to genesis members. When a DAO grows in terms of users or cash flow... See more

Anything in a DAO that can be automated should be. Anything that can’t be automated should be funded by the treasury. Treasuries help DAOs fund critical development, attract contributors, and grow their network.

Outline the dilemma that DAOs face today: one the one hand, DAOs need to diversify their treasuries away from their native token concentration; on the other hand, they can’t simply sell their native tokens on the open market without moving the market or cause any negative perception by market participants or its community members. We will discuss s... See more

Anything in a DAO that can be automated should be. Anything that can’t be automated should be funded by the treasury. Treasuries help DAOs fund critical development, attract contributors, and grow their network. They are a vehicle to express the values of a DAO and increase its longevity.