Community Treasury

Definition ∞ A Community Treasury is a pool of funds controlled by the participants of a decentralized protocol or project. These funds are typically generated through transaction fees, token inflation, or other protocol-specific revenue streams. The treasury supports the development, maintenance, and growth of the ecosystem through proposals and voting by token holders. It serves as a decentralized mechanism for resource allocation and collective decision-making.
Context ∞ Reports on decentralized autonomous organizations (DAOs) frequently highlight the role and management of their Community Treasury. Discussions often involve governance proposals for how funds should be spent, including grants for developers or marketing initiatives. The size and effective management of a treasury are often seen as indicators of a project’s long-term health and community engagement. Future trends suggest increased sophistication in treasury management tools and more liquid asset allocation strategies.