Whether it is a team or a DAO, to survive longer term in crypto these entities need a reserve of funds to pay for maintenance, development, incent growth of their project, and have ‘rainy day funds’ for emergencies or opportunities. This so-called treasury should provide this funding, especially during crypto’s predictable bear markets. Growing projects often have to tap into these reserves since they may not generate ample revenue yet, or previously sufficient revenue is not generated during poor market conditions. In bear markets teams often become inactive or rug, because they lack the funds to continue development. How can a project ensure their long term viability, manage risk, and steadily grow their treasury? For investors and traders these questions matter too since they can point to stronger and weaker projects in the market.
Managing A Treasury For Sustainable Growth
Managing A Treasury For Sustainable Growth
Managing A Treasury For Sustainable Growth
Whether it is a team or a DAO, to survive longer term in crypto these entities need a reserve of funds to pay for maintenance, development, incent growth of their project, and have ‘rainy day funds’ for emergencies or opportunities. This so-called treasury should provide this funding, especially during crypto’s predictable bear markets. Growing projects often have to tap into these reserves since they may not generate ample revenue yet, or previously sufficient revenue is not generated during poor market conditions. In bear markets teams often become inactive or rug, because they lack the funds to continue development. How can a project ensure their long term viability, manage risk, and steadily grow their treasury? For investors and traders these questions matter too since they can point to stronger and weaker projects in the market.