Definition ∞ Treasury mismanagement refers to the poor or irresponsible handling of an organization’s financial assets, particularly in the context of digital asset projects or decentralized autonomous organizations (DAOs). This can involve imprudent investment decisions, inadequate risk controls, or a lack of transparency in fund allocation. Such practices can lead to significant financial losses and jeopardize the project’s long-term viability.
Context ∞ Reports of treasury mismanagement frequently spark community outrage and investor concern, especially within DAO governance models where transparency and accountability are paramount. The industry is increasingly focused on implementing robust governance frameworks, multi-signature controls, and independent audits to prevent these issues and safeguard communal funds.
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