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Crypto overexposure is putting on-chain treasuries at risk | Opinion

The article discusses the current state of DAO treasuries in the cryptocurrency market and highlights the risks associated with holding predominantly crypto assets. The author notes that many DAOs hold over 90% of their treasury value in their native tokens or other cryptocurrencies, leaving them vulnerable to market downturns and impeding their ability to account for operational costs in fiat currencies. The article argues that DAOs need to appoint treasury managers or CFOs who can make proactive decisions to reduce risk and promote longevity. The author suggests that diversification, including the use of stablecoins or tokenized real-world assets, can provide a more sustainable approach to treasury management. Ultimately, the article emphasizes the importance of risk management and ecosystem sustainability in the evolving crypto landscape.

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