Introduction
Every DAO needs money to support its plans, pay contributors, fund new ideas, and keep its community active
Without enough funds, even a good project can struggle to grow, which is why treasury management is one of the most important parts of running a DAO
A DAO treasury is the money and assets held by a decentralized autonomous organization, and these assets can include stablecoins, the project’s native token, ETH, BTC, and other crypto assets
Some DAOs also put funds into DeFi platforms to earn extra income
However, holding these assets is not enough, as a DAO must decide how much of its treasury should be kept in stablecoins, how much should be held in its native token, and how much should be placed in other crypto assets
This is where treasury portfolio strategies come in
Some DAOs prefer to keep most of their funds in stablecoins because they want to protect their money and pay expenses without worrying too much about market changes, while other DAOs hold a large part of their treasury in their own tokens because they believe their project will grow in value over time
Both approaches have benefits and risks, and the best choice depends on the DAO’s goals, spending needs, growth plans, and ability to handle losses
In this guide, we will look at the main treasury strategies, the difference between stable-heavy and native-token-heavy portfolios, and how DAOs can find a balance that works for them
1 — What Is a DAO Treasury
A DAO treasury is a shared pool of funds controlled by the rules and decisions of a decentralized organization
Instead of one person making every financial decision, DAO members can take part in important choices through voting and other agreed methods
Depending on how the DAO is set up, treasury funds may be controlled by a multisig wallet, smart contracts, or another system
The treasury helps the DAO pay for its daily activities and long-term plans
For example, a DAO may use its treasury to pay developers, reward community members, fund marketing, support partnerships, pay for audits, and build new products
A treasury can also help a DAO survive during difficult market conditions, as having enough funds can give the team more time to work when the market goes down or the project takes longer than expected to grow
This is why a DAO should not focus only on how much its treasury is worth today, but should also think about how long those funds can support the project
A treasury worth $5 million may look strong, but if most of that value comes from a token whose price can fall quickly, the DAO may not be as safe as it appears
Good treasury management means knowing what the DAO holds, understanding the risks, and making sure there is enough money for important needs
2 — Understanding a Stable-Heavy Treasury
A stable-heavy treasury is a portfolio where most of the funds are held in stablecoins
Stablecoins are crypto assets designed to maintain a fairly stable value, often by tracking a currency such as the US dollar, with USDC and USDT being common examples
For example, a DAO with a treasury worth $1 million might hold $700,000 in stablecoins, $200,000 in its native token, and $100,000 in ETH
In this case, most of the treasury is held in assets that aim to maintain a stable value
Why Do Some DAOs Prefer Stablecoins
The main reason is simple, as stablecoins make it easier to plan spending
If a DAO needs to pay developers $20,000 every month, it wants to know that the money will still be available when payment is due
When the treasury is mainly held in a volatile token, the value of those funds can change quickly, as a token worth $1 today could fall to $0 60 next month
This can make it harder to meet financial needs
Stablecoins can reduce this problem
Another benefit is that stablecoins make budgeting easier, as a DAO can set aside money for salaries, marketing, security, and other costs without having to sell a large amount of its native token every time it needs to pay a bill
Stable-heavy portfolios can also help DAOs during bear markets, as a strong stablecoin balance may allow the project to continue working while other projects are forced to cut spending
The Risks of Stable-Heavy Portfolios
Stablecoins are not completely risk-free
Some depend on reserves held by companies or financial institutions, and problems with those reserves, banking partners, or the issuer can affect the stablecoin’s value
There is also the risk of losing its dollar peg, which happens when a stablecoin trades below or above the value it is meant to maintain
For example, if a stablecoin designed to be worth $1 falls to $0 85, a DAO holding $100,000 of that asset may find that its funds are worth less than expected
Stablecoins used in DeFi can also face smart contract risks, platform failures, and other security problems
Another issue is that a stable-heavy treasury may not benefit much if the DAO’s native token rises sharply in value
For this reason, a stable-heavy approach is useful for managing risk and covering expenses, but it may not be the best strategy for every part of a DAO’s treasury
3 — Understanding a Native-Token-Heavy Treasury
A native-token-heavy treasury is a portfolio where a large share of the funds is held in the DAO’s own token
For example, imagine a DAO with a treasury worth $1 million, holding $700,000 in its native token, $200,000 in stablecoins, and $100,000 in ETH
This is a native-token-heavy portfolio because most of the treasury depends on the value of the project’s own token
Many DAOs start with a large amount of their native token because tokens are often created during the project’s launch, and the DAO may also receive tokens through fundraising, token allocations, or other activities
Holding native tokens can make sense when the DAO believes the project has strong long-term potential
If the project grows, attracts more users, and creates real demand for its token, the token price may increase, which could raise the value of the treasury without the DAO needing to earn the same amount through its daily activities
Benefits of a Native-Token-Heavy Portfolio
One major benefit is the chance to gain value as the project grows
If a DAO holds 10 million tokens worth $0 10 each, the total value is $1 million, and if the token price rises to $0 20, the value of those holdings becomes $2 million
This can give the DAO more financial strength on paper
Another benefit is that the DAO remains closely connected to its own ecosystem, especially if its token is used for governance, staking, or other parts of the project
A native-token-heavy treasury can also reduce the need to buy back tokens later if the DAO needs them for certain activities
However, this does not mean that every DAO should keep most of its treasury in its own token
The Risks of a Native-Token-Heavy Portfolio
The biggest risk is that the token price can fall sharply
Using the same example, if the token price drops from $0 10 to $0 04, the value of 10 million tokens falls from $1 million to $400,000
The DAO has lost 60% of the value of those holdings
This becomes a serious problem when the DAO needs money for expenses, as it may have to sell more tokens to raise the same amount of stablecoins, especially when the market is already weak
There is also a problem with relying too heavily on one asset
If the project faces security issues, loses users, or struggles to gain attention, its token price may fall at the same time the DAO needs more money to fix its problems
This creates a difficult situation because the DAO’s financial strength and the project’s market performance depend on the same token
A large native-token balance can make a treasury look valuable during a bull market, but that value may not be available when the DAO needs it most
4 — Comparing Stable-Heavy and Native-Token-Heavy Strategies
Both strategies can work, but they serve different purposes
A stable-heavy treasury focuses more on protecting spending power, while a native-token-heavy treasury focuses more on the possible future growth of the project’s token
Here is a simple comparison
Stable-Heavy Treasury
Native-Token-Heavy Treasury
Neither strategy is always better
A DAO that has high monthly expenses and a small reserve may need to focus more on stablecoins, while a DAO with very low expenses and a long-term goal may be able to accept more risk
The key is to understand what the treasury needs to do instead of choosing a strategy because other DAOs are using it
5 — The Balanced Treasury Strategy
For many DAOs, a balanced portfolio can be a practical middle ground
Instead of keeping almost everything in stablecoins or native tokens, the DAO spreads its funds across different assets
For example, a DAO with a treasury worth $1 million could use this allocation
This is only an example, not a rule that every DAO should follow
The stablecoin portion can support salaries, development, marketing, and other planned costs, while the native-token portion gives the DAO exposure to possible growth in its ecosystem
ETH and other approved assets may provide additional ways to spread risk
However, holding different tokens does not automatically make a treasury safe, as some crypto assets move in the same direction during market changes
A DAO should understand how its assets may behave together
The right balance depends on the project’s financial position
A DAO that has two years of operating expenses covered may be able to accept more market risk than a DAO that only has enough funds for three months
A balanced strategy also needs regular reviews, as the native token may rise sharply and become a much larger part of the treasury than planned
If the price falls, the DAO may find that its stablecoin reserve is no longer large enough compared with its total needs
Regular reviews help the DAO notice these changes before they become serious problems
6 — Start With the DAO’s Expenses
Before deciding how much to hold in each asset, the DAO should understand its spending needs
This is one of the most important steps in treasury planning
The team should calculate how much money it needs each month for developers, contributors, marketing, security, legal costs, and other activities
It should also consider future expenses, as a project preparing for a major launch may need more funds than one that is already running smoothly
Let’s say a DAO spends $40,000 every month
If it wants to keep enough stablecoins to cover six months of expenses, it should aim for a reserve of $240,000
This reserve can help the DAO continue operating if the market becomes weak or its income falls
The DAO may decide to keep more than six months of expenses in reserve if its funding is uncertain, while another DAO with regular income and low expenses may need a different amount
The important point is that the reserve should be based on the DAO’s real financial needs
Once the DAO has set aside enough money for essential expenses, it can decide how to manage the remaining funds
This makes it easier to take investment risks without putting the entire project at risk
7 — Use a Clear Treasury Policy
A DAO should not make major treasury decisions based only on emotions or short-term market movements
It needs a clear treasury policy that explains how funds will be managed
The policy should state which assets the DAO is allowed to hold, how much it can invest in each asset, and how much money must remain available for expenses
It should also explain who can approve transactions and how large transfers will be handled
For example, a DAO may decide that no single volatile asset should make up more than 30% of its treasury
It may also require that at least six months of expected operating costs remain in low-risk, liquid assets
These rules should match the DAO’s actual needs and risk level
The policy should also explain what happens when the portfolio moves outside its planned limits
Without clear rules, a DAO may make rushed decisions during a market rally or panic when prices fall
A written policy gives members a shared plan to follow and makes treasury management easier to review
It can also improve trust because community members can understand how the DAO plans to protect and use its funds
8 — Be Careful With DeFi Yield Strategies
Some DAOs try to increase their treasury by placing assets in DeFi protocols that offer interest or other rewards
For example, a DAO may lend stablecoins through a lending platform or provide liquidity to a decentralized exchange
These activities can create extra income, but they also introduce new risks
A platform may have a smart contract weakness that allows attackers to steal funds, while a lending market may face liquidity problems
A liquidity pool may also lose value because the prices of its assets move differently
The rewards offered by a platform can change over time
A DAO should not choose a platform only because it promises a high return, but should understand where the return comes from and what could cause a loss
It should also check whether the funds can be withdrawn when needed
Treasury funds intended for salaries and other near-term expenses should generally not be placed in strategies that make withdrawals difficult or expose the money to risks the DAO cannot afford
If the DAO decides to use DeFi, it should set limits on how much money can be placed in each platform
It should also review the platform’s security history, smart contract audits, liquidity, and other important details
In some cases, keeping funds in a simple wallet may be better than taking extra risks for a small return
9 — Treasury Diversification and Risk Management
Diversification means spreading funds across different assets instead of depending on only one
For a DAO, this can mean holding stablecoins, its native token, ETH, and other assets that fit its goals
The purpose is to reduce the effect of a problem with one asset on the entire treasury
However, diversification should be done carefully
A DAO does not need to buy many tokens just to say that its treasury is diversified, as holding too many assets can make management harder and increase the time needed to review each one
The DAO should focus on assets it understands and can manage properly
It should also consider liquidity, as an asset may look valuable on paper, but if there are not enough buyers, selling a large amount could push the price down
This is especially important for smaller native tokens
For example, a DAO may report that it holds $2 million worth of its native token, but if the market cannot handle a large sale without a major price drop, the DAO may not be able to turn all those tokens into stablecoins at the reported price
This means the treasury’s market value is not always the same as the amount of money it can safely use
Risk management should include checking liquidity, limiting exposure to risky platforms, protecting wallet access, and keeping clear records of treasury activity
10 — How DAOs Can Move From One Strategy to Another
A DAO does not have to choose one treasury strategy forever
Its needs can change as the project grows
A new DAO may begin with a large native-token balance because it receives tokens during launch, but as the project starts paying contributors and funding development, it may decide to move part of those holdings into stablecoins
An older DAO with regular income may decide to hold more ETH or native tokens if it has enough funds to cover its expenses
The important thing is to make these changes through a clear plan
For example, a DAO moving from a native-token-heavy portfolio to a more balanced one could sell a small amount of its native token over several weeks or months instead of making one large sale
This may help reduce the effect of selling everything at once, although it does not guarantee a better price
The DAO should also consider market liquidity, trading fees, taxes where applicable, and the effect of its sales on the community
Large token sales can worry holders, especially when the reason for the sale is unclear
For this reason, the DAO should explain its treasury plans and provide updates on important changes
Moving from a stable-heavy portfolio to a native-token-heavy one also requires care, as the DAO should first make sure that its operating reserve is strong enough and that it understands the risks of increasing its exposure
Treasury changes should be based on the project’s needs, not on the fear of missing out when prices start rising
11 — Governance and Community Involvement
Treasury management is not only about numbers, as it is also about trust
In many DAOs, community members expect to have a say in how shared funds are used
They want to know why certain assets are held, how money is spent, and whether the treasury can support the project’s plans
Every DAO needs money to support its plans, pay contributors, fund new ideas, and keep its community active
Without enough funds, even a good project can struggle to grow, which is why treasury management is one of the most important parts of running a DAO
A DAO treasury is the money and assets held by a decentralized autonomous organization, and these assets can include stablecoins, the project’s native token, ETH, BTC, and other crypto assets
Some DAOs also put funds into DeFi platforms to earn extra income
However, holding these assets is not enough, as a DAO must decide how much of its treasury should be kept in stablecoins, how much should be held in its native token, and how much should be placed in other crypto assets
This is where treasury portfolio strategies come in
Some DAOs prefer to keep most of their funds in stablecoins because they want to protect their money and pay expenses without worrying too much about market changes, while other DAOs hold a large part of their treasury in their own tokens because they believe their project will grow in value over time
Both approaches have benefits and risks, and the best choice depends on the DAO’s goals, spending needs, growth plans, and ability to handle losses
In this guide, we will look at the main treasury strategies, the difference between stable-heavy and native-token-heavy portfolios, and how DAOs can find a balance that works for them
1 — What Is a DAO Treasury
A DAO treasury is a shared pool of funds controlled by the rules and decisions of a decentralized organization
Instead of one person making every financial decision, DAO members can take part in important choices through voting and other agreed methods
Depending on how the DAO is set up, treasury funds may be controlled by a multisig wallet, smart contracts, or another system
The treasury helps the DAO pay for its daily activities and long-term plans
For example, a DAO may use its treasury to pay developers, reward community members, fund marketing, support partnerships, pay for audits, and build new products
A treasury can also help a DAO survive during difficult market conditions, as having enough funds can give the team more time to work when the market goes down or the project takes longer than expected to grow
This is why a DAO should not focus only on how much its treasury is worth today, but should also think about how long those funds can support the project
A treasury worth $5 million may look strong, but if most of that value comes from a token whose price can fall quickly, the DAO may not be as safe as it appears
Good treasury management means knowing what the DAO holds, understanding the risks, and making sure there is enough money for important needs
2 — Understanding a Stable-Heavy Treasury
A stable-heavy treasury is a portfolio where most of the funds are held in stablecoins
Stablecoins are crypto assets designed to maintain a fairly stable value, often by tracking a currency such as the US dollar, with USDC and USDT being common examples
For example, a DAO with a treasury worth $1 million might hold $700,000 in stablecoins, $200,000 in its native token, and $100,000 in ETH
In this case, most of the treasury is held in assets that aim to maintain a stable value
Why Do Some DAOs Prefer Stablecoins
The main reason is simple, as stablecoins make it easier to plan spending
If a DAO needs to pay developers $20,000 every month, it wants to know that the money will still be available when payment is due
When the treasury is mainly held in a volatile token, the value of those funds can change quickly, as a token worth $1 today could fall to $0 60 next month
This can make it harder to meet financial needs
Stablecoins can reduce this problem
Another benefit is that stablecoins make budgeting easier, as a DAO can set aside money for salaries, marketing, security, and other costs without having to sell a large amount of its native token every time it needs to pay a bill
Stable-heavy portfolios can also help DAOs during bear markets, as a strong stablecoin balance may allow the project to continue working while other projects are forced to cut spending
The Risks of Stable-Heavy Portfolios
Stablecoins are not completely risk-free
Some depend on reserves held by companies or financial institutions, and problems with those reserves, banking partners, or the issuer can affect the stablecoin’s value
There is also the risk of losing its dollar peg, which happens when a stablecoin trades below or above the value it is meant to maintain
For example, if a stablecoin designed to be worth $1 falls to $0 85, a DAO holding $100,000 of that asset may find that its funds are worth less than expected
Stablecoins used in DeFi can also face smart contract risks, platform failures, and other security problems
Another issue is that a stable-heavy treasury may not benefit much if the DAO’s native token rises sharply in value
For this reason, a stable-heavy approach is useful for managing risk and covering expenses, but it may not be the best strategy for every part of a DAO’s treasury
3 — Understanding a Native-Token-Heavy Treasury
A native-token-heavy treasury is a portfolio where a large share of the funds is held in the DAO’s own token
For example, imagine a DAO with a treasury worth $1 million, holding $700,000 in its native token, $200,000 in stablecoins, and $100,000 in ETH
This is a native-token-heavy portfolio because most of the treasury depends on the value of the project’s own token
Many DAOs start with a large amount of their native token because tokens are often created during the project’s launch, and the DAO may also receive tokens through fundraising, token allocations, or other activities
Holding native tokens can make sense when the DAO believes the project has strong long-term potential
If the project grows, attracts more users, and creates real demand for its token, the token price may increase, which could raise the value of the treasury without the DAO needing to earn the same amount through its daily activities
Benefits of a Native-Token-Heavy Portfolio
One major benefit is the chance to gain value as the project grows
If a DAO holds 10 million tokens worth $0 10 each, the total value is $1 million, and if the token price rises to $0 20, the value of those holdings becomes $2 million
This can give the DAO more financial strength on paper
Another benefit is that the DAO remains closely connected to its own ecosystem, especially if its token is used for governance, staking, or other parts of the project
A native-token-heavy treasury can also reduce the need to buy back tokens later if the DAO needs them for certain activities
However, this does not mean that every DAO should keep most of its treasury in its own token
The Risks of a Native-Token-Heavy Portfolio
The biggest risk is that the token price can fall sharply
Using the same example, if the token price drops from $0 10 to $0 04, the value of 10 million tokens falls from $1 million to $400,000
The DAO has lost 60% of the value of those holdings
This becomes a serious problem when the DAO needs money for expenses, as it may have to sell more tokens to raise the same amount of stablecoins, especially when the market is already weak
There is also a problem with relying too heavily on one asset
If the project faces security issues, loses users, or struggles to gain attention, its token price may fall at the same time the DAO needs more money to fix its problems
This creates a difficult situation because the DAO’s financial strength and the project’s market performance depend on the same token
A large native-token balance can make a treasury look valuable during a bull market, but that value may not be available when the DAO needs it most
4 — Comparing Stable-Heavy and Native-Token-Heavy Strategies
Both strategies can work, but they serve different purposes
A stable-heavy treasury focuses more on protecting spending power, while a native-token-heavy treasury focuses more on the possible future growth of the project’s token
Here is a simple comparison
Stable-Heavy Treasury
- Easier to plan monthly expenses
- Less exposed to changes in the native token’s price
- Can help the DAO continue operating during market downturns
- May have less exposure to gains from the project’s token
- Still faces stablecoin, issuer, and platform risks
Native-Token-Heavy Treasury
- May gain more value if the native token performs well
- Keeps a large part of the treasury connected to the project’s ecosystem
- Can be useful when the DAO has a long-term growth plan
- Exposes the treasury to large price changes
- May make it harder to pay expenses during a market crash
Neither strategy is always better
A DAO that has high monthly expenses and a small reserve may need to focus more on stablecoins, while a DAO with very low expenses and a long-term goal may be able to accept more risk
The key is to understand what the treasury needs to do instead of choosing a strategy because other DAOs are using it
5 — The Balanced Treasury Strategy
For many DAOs, a balanced portfolio can be a practical middle ground
Instead of keeping almost everything in stablecoins or native tokens, the DAO spreads its funds across different assets
For example, a DAO with a treasury worth $1 million could use this allocation
- 50% in stablecoins
- 25% in native tokens
- 15% in ETH
- 10% in other approved assets
This is only an example, not a rule that every DAO should follow
The stablecoin portion can support salaries, development, marketing, and other planned costs, while the native-token portion gives the DAO exposure to possible growth in its ecosystem
ETH and other approved assets may provide additional ways to spread risk
However, holding different tokens does not automatically make a treasury safe, as some crypto assets move in the same direction during market changes
A DAO should understand how its assets may behave together
The right balance depends on the project’s financial position
A DAO that has two years of operating expenses covered may be able to accept more market risk than a DAO that only has enough funds for three months
A balanced strategy also needs regular reviews, as the native token may rise sharply and become a much larger part of the treasury than planned
If the price falls, the DAO may find that its stablecoin reserve is no longer large enough compared with its total needs
Regular reviews help the DAO notice these changes before they become serious problems
6 — Start With the DAO’s Expenses
Before deciding how much to hold in each asset, the DAO should understand its spending needs
This is one of the most important steps in treasury planning
The team should calculate how much money it needs each month for developers, contributors, marketing, security, legal costs, and other activities
It should also consider future expenses, as a project preparing for a major launch may need more funds than one that is already running smoothly
Let’s say a DAO spends $40,000 every month
If it wants to keep enough stablecoins to cover six months of expenses, it should aim for a reserve of $240,000
This reserve can help the DAO continue operating if the market becomes weak or its income falls
The DAO may decide to keep more than six months of expenses in reserve if its funding is uncertain, while another DAO with regular income and low expenses may need a different amount
The important point is that the reserve should be based on the DAO’s real financial needs
Once the DAO has set aside enough money for essential expenses, it can decide how to manage the remaining funds
This makes it easier to take investment risks without putting the entire project at risk
7 — Use a Clear Treasury Policy
A DAO should not make major treasury decisions based only on emotions or short-term market movements
It needs a clear treasury policy that explains how funds will be managed
The policy should state which assets the DAO is allowed to hold, how much it can invest in each asset, and how much money must remain available for expenses
It should also explain who can approve transactions and how large transfers will be handled
For example, a DAO may decide that no single volatile asset should make up more than 30% of its treasury
It may also require that at least six months of expected operating costs remain in low-risk, liquid assets
These rules should match the DAO’s actual needs and risk level
The policy should also explain what happens when the portfolio moves outside its planned limits
Without clear rules, a DAO may make rushed decisions during a market rally or panic when prices fall
A written policy gives members a shared plan to follow and makes treasury management easier to review
It can also improve trust because community members can understand how the DAO plans to protect and use its funds
8 — Be Careful With DeFi Yield Strategies
Some DAOs try to increase their treasury by placing assets in DeFi protocols that offer interest or other rewards
For example, a DAO may lend stablecoins through a lending platform or provide liquidity to a decentralized exchange
These activities can create extra income, but they also introduce new risks
A platform may have a smart contract weakness that allows attackers to steal funds, while a lending market may face liquidity problems
A liquidity pool may also lose value because the prices of its assets move differently
The rewards offered by a platform can change over time
A DAO should not choose a platform only because it promises a high return, but should understand where the return comes from and what could cause a loss
It should also check whether the funds can be withdrawn when needed
Treasury funds intended for salaries and other near-term expenses should generally not be placed in strategies that make withdrawals difficult or expose the money to risks the DAO cannot afford
If the DAO decides to use DeFi, it should set limits on how much money can be placed in each platform
It should also review the platform’s security history, smart contract audits, liquidity, and other important details
In some cases, keeping funds in a simple wallet may be better than taking extra risks for a small return
9 — Treasury Diversification and Risk Management
Diversification means spreading funds across different assets instead of depending on only one
For a DAO, this can mean holding stablecoins, its native token, ETH, and other assets that fit its goals
The purpose is to reduce the effect of a problem with one asset on the entire treasury
However, diversification should be done carefully
A DAO does not need to buy many tokens just to say that its treasury is diversified, as holding too many assets can make management harder and increase the time needed to review each one
The DAO should focus on assets it understands and can manage properly
It should also consider liquidity, as an asset may look valuable on paper, but if there are not enough buyers, selling a large amount could push the price down
This is especially important for smaller native tokens
For example, a DAO may report that it holds $2 million worth of its native token, but if the market cannot handle a large sale without a major price drop, the DAO may not be able to turn all those tokens into stablecoins at the reported price
This means the treasury’s market value is not always the same as the amount of money it can safely use
Risk management should include checking liquidity, limiting exposure to risky platforms, protecting wallet access, and keeping clear records of treasury activity
10 — How DAOs Can Move From One Strategy to Another
A DAO does not have to choose one treasury strategy forever
Its needs can change as the project grows
A new DAO may begin with a large native-token balance because it receives tokens during launch, but as the project starts paying contributors and funding development, it may decide to move part of those holdings into stablecoins
An older DAO with regular income may decide to hold more ETH or native tokens if it has enough funds to cover its expenses
The important thing is to make these changes through a clear plan
For example, a DAO moving from a native-token-heavy portfolio to a more balanced one could sell a small amount of its native token over several weeks or months instead of making one large sale
This may help reduce the effect of selling everything at once, although it does not guarantee a better price
The DAO should also consider market liquidity, trading fees, taxes where applicable, and the effect of its sales on the community
Large token sales can worry holders, especially when the reason for the sale is unclear
For this reason, the DAO should explain its treasury plans and provide updates on important changes
Moving from a stable-heavy portfolio to a native-token-heavy one also requires care, as the DAO should first make sure that its operating reserve is strong enough and that it understands the risks of increasing its exposure
Treasury changes should be based on the project’s needs, not on the fear of missing out when prices start rising
11 — Governance and Community Involvement
Treasury management is not only about numbers, as it is also about trust
In many DAOs, community members expect to have a say in how shared funds are used
They want to know why certain assets are held, how money is spent, and whether the treasury can support the project’s plans