Autonomous Treasury

Definition ∞ An Autonomous Treasury operates without constant human oversight, managing digital assets and executing financial strategies through programmed rules. This mechanism often functions within decentralized autonomous organizations (DAOs), holding and allocating funds based on smart contract logic. It ensures transparent and verifiable financial operations for a digital entity. Such a treasury executes predefined actions automatically, such as distributing rewards or investing surplus capital.
Context ∞ The operation of autonomous treasuries is a central point of discussion within the decentralized finance (DeFi) space, focusing on governance models and risk management. Debates often address the balance between automation and the need for human intervention in unforeseen market conditions. Future developments include more sophisticated risk parameters and adaptive algorithms to enhance financial stability.