On-Chain Treasury

Definition ∞ An on-chain treasury is a pool of digital assets, typically cryptocurrency, managed directly by a decentralized autonomous organization (DAO) through smart contracts. These funds are held transparently on the blockchain, with expenditures and allocations determined by community voting or predefined protocol rules. It functions as the financial reserve and operational budget for decentralized projects.
Context ∞ On-chain treasuries are a central element of DAO governance, frequently discussed in news concerning decentralized project funding and community decision-making. The transparency and immutability of these treasuries offer a new model for organizational finance, though debates persist regarding security, efficiency, and participant apathy in voting processes. Effective management of these assets is crucial for project sustainability.