Treasury Value Locked

Definition ∞ Treasury Value Locked (TVL) represents the total monetary value of assets held within a decentralized protocol’s or project’s community treasury. This metric quantifies the financial resources available to a decentralized autonomous organization (DAO) for development, grants, liquidity provisions, and other operational expenses. A higher TVL often indicates greater financial stability and a stronger capacity for long-term project sustainability. It reflects the collective assets under the control of the community.
Context ∞ Treasury Value Locked is a key metric frequently reported in crypto news and analytics, particularly for decentralized autonomous organizations and DeFi protocols. Changes in TVL can signal market sentiment, project health, or significant governance decisions impacting the treasury’s holdings. Discussions often involve the strategies for managing these assets, including diversification and yield generation. The growth and responsible management of Treasury Value Locked are crucial indicators of a decentralized project’s maturity and future prospects.