On Chain Treasury Management

Definition ∞ On Chain Treasury Management involves administering and allocating digital assets held by decentralized autonomous organizations (DAOs) or other blockchain-based entities directly on the blockchain. This process uses smart contracts to govern the spending, investment, and distribution of communal funds, ensuring transparency and immutability. All transactions and decisions related to the treasury are recorded publicly on the distributed ledger. This eliminates the need for traditional financial intermediaries.
Context ∞ On chain treasury management is a significant subject in crypto news, particularly with the growth of DAOs and their substantial asset holdings. Discussions often address the challenges of governance, security of smart contracts, and efficient capital allocation within these decentralized structures. A critical future development involves the creation of more sophisticated and automated on chain treasury tools, allowing for dynamic asset allocation and risk management strategies.