Treasury Financing

Definition ∞ Treasury financing refers to the methods by which an organization or protocol raises capital to fund its operations or projects. This involves managing reserves, issuing new assets, or utilizing existing funds to support ongoing development. It ensures the financial stability and longevity of the entity. In decentralized systems, this often involves community-governed funds.
Context ∞ In the digital asset space, treasury financing is a key aspect of decentralized autonomous organizations (DAOs) and blockchain projects, frequently discussed in news concerning tokenomics and protocol governance. Debates often revolve around sustainable funding models, community allocation of resources, and the transparency of fund management. Effective treasury management is vital for the sustained growth of decentralized ecosystems.