Treasury Authority

Definition ∞ Treasury authority, within the context of decentralized autonomous organizations or blockchain projects, refers to the delegated power to manage and allocate the organization’s financial reserves or native tokens. This authority typically rests with a governance body, a multisignature wallet, or a set of smart contracts controlled by community consensus. It dictates how funds are used for development, ecosystem growth, or operational expenses. Proper management is vital for project sustainability.
Context ∞ The management and oversight of treasury authority are critical topics in the governance of DAOs and blockchain projects, frequently discussed in crypto news. Debates often center on the optimal level of decentralization for treasury control, balancing efficiency with security and community input. News reports often cover proposals for treasury allocation, audits of treasury funds, and discussions around potential risks associated with concentrated or poorly managed authority. Transparent and accountable treasury management is key for project trust.