Overview
The multi-sig threshold is the number of signatures required to authorize a transaction in a multisig wallet. It balances security and usability. Common configurations are 2-of-3 or 3-of-5.
How It Works
A multisig defines a set of owners and a threshold. Transactions need the threshold of confirmations to execute. This prevents a single compromised key from draining funds.
Why It Matters
The threshold determines the trade-off between security and operational efficiency. Too high risks lockout; too low risks compromise. It is central to treasury management.
Related Concepts
The multi-sig threshold is part of Multisig wallets and Safe. It relates to Key Management and governance.