How DAOs should approach treasury management on Bankless

It is risky for protocols to only have their own governance tokens in their treasury. If Uniswap has only UNI in its treasury and the token price falls by 40%, its balance sheet would also shrink by 40%. This is dangerous because it occurs at a time when the protocol needs to ramp up spending, whether it is LP subsidies, token buybacks, or core dev... See more

Currently, even some of the largest protocols are unable to generate enough revenue to cover operational expenses (audits, salaries/payments to contributors, marketing, etc.). Yearn, for instance, operates at a loss even after accounting for non-operating income from yield farming. As such, retaining protocol revenue alone is likely to be insuffici... See more

Fiscal policy: how much to spend and what to spend onAsset allocation: how the treasury should be diversified to fund key protocol development irrespective of the market environmentReporting: financial statements of the treasury and summary of key transactions

9. 85% of the DAOs tracked by Chainalysis have their treasury in a single asset. USDC is more preferred than DAI for DAOs handling stablecoins.