Community Vault

Definition ∞ A Community Vault is a shared digital treasury controlled by a decentralized autonomous organization or a collective of token holders. This fund holds assets designated for various purposes, such as protocol development, ecosystem grants, marketing, or liquidity provision. Decisions regarding the allocation and use of these assets are typically made through on-chain governance mechanisms, requiring consensus from the community. It represents a decentralized approach to resource management and project funding.
Context ∞ Community vaults are a frequent subject in discussions about decentralized governance and the sustainability of blockchain projects. The ongoing conversation often centers on achieving effective participation and preventing centralized control over these significant asset pools. Future trends include sophisticated governance models that aim to balance efficiency with broad community input.