Onchain Treasury

Definition ∞ An Onchain Treasury refers to a pool of digital assets managed and controlled directly by a decentralized autonomous organization (DAO) or a blockchain protocol, with all transactions recorded on the public ledger. These funds are typically used for protocol development, ecosystem grants, or operational expenses, with decisions often made through community governance votes. This mechanism provides transparency and decentralized control over collective resources. It is a core element of many decentralized projects.
Context ∞ The governance and utilization of Onchain Treasuries are central to the operational models of many decentralized projects, driving discussions about effective community decision-making. Debates often concern the optimal allocation of these funds, balancing short-term operational needs with long-term ecosystem growth. Regulatory scrutiny is increasing around the legal status and accountability of entities managing these treasuries, particularly regarding investor protection and financial oversight.