Overview
A protocol treasury is a pool of assets owned by a protocol or DAO, used for grants, incentives, and operations. It funds the ecosystem's growth. Treasury management is a governance responsibility.
How It Works
The treasury holds tokens and stablecoins, allocated by governance through proposals. Funds support development, liquidity, and community programs. Transparency and security are critical.
Why It Matters
Treasuries sustain protocols and fund innovation. Their size and management influence trust and longevity. Governance of treasuries is a central DAO function.
Related Concepts
Treasuries relate to DAOs, Governance, and Grants. They are the Financial engine of a Protocol.