Community Treasury Management

Definition ∞ Community treasury management involves decentralized autonomous organizations controlling and allocating collective funds. This process typically utilizes governance tokens, allowing holders to vote on proposals for fund usage, protocol upgrades, and ecosystem development. Decisions are recorded on the blockchain, ensuring transparency and immutability. Effective management aims to sustain and expand the protocol’s operations and value.
Context ∞ The ongoing discourse often concerns the efficiency and fairness of governance mechanisms, alongside the security of significant asset holdings within these treasuries. A critical debate involves balancing immediate operational needs with long-term strategic investments. Future trends point towards more sophisticated voting models and automated treasury operations.