A fascinating trend in crypto is how we’ve seen treasury management change over time. We are past the days of 2017 ICO projects simply sitting on ETH and continuously selling over time to fund operations. Nowadays, as we shift to more community owned models, idle capital is becoming more frowned upon, given the increasing number of ways to diversify and earn passive yields.
With the emergence of DAOs, community driven treasury management has risen to prominence and we are seeing creative capital allocation. Strong treasury management can be vital for a crypto project’s long term success as it needs sufficient funding to foster development and weather both bull and bear market cycles. Even in traditional finance, corporate treasuries of Square and Microstrategy have allocated a combined $475m in BTC, although for this piece I’m focusing on crypto-native treasury management which is entitled to even more flexibility. Note that a large war chest doesn’t always indicate success. See Tezos and EOS, two projects that haven’t taken advantage of large funds on hand. On the other hand, more nimble pr