✅ Master Multisig Security

Understand thresholds, signer management, and attack prevention

Secure DAO funds with multi-signature wallets

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🎯 Key Takeaways

💡 What You've Learned

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Multi-sig raises the bar, not eliminates risk: Single-key wallets = one compromise = total loss. Multi-sig requires M-of-N approvals, protecting against single points of failure. But it's not invincible—attackers adapt by targeting multiple signers or exploiting coordination weaknesses.

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Threshold selection is context-dependent: No perfect number. Simple majority (3-of-5) = fast but less secure. Supermajority (5-of-7) = balanced, industry standard for $10M-$100M treasuries. High security (7-of-9) = maximum protection but operationally slow. Choose based on treasury size and threat model.

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Human factor is the weakest link: 70% of breaches from phishing/social engineering. Perfect threshold math means nothing if signers fall for fake Gnosis interfaces or sign without transaction simulation. Defense: hardware wallets only, voice confirmation for large transfers, continuous training.

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Distribution and independence are critical: All signers in one company/location = single point of failure (legal seizure, coordinated attack, physical disaster). Real security requires: geographic diversity, organizational independence, no threshold signers from same entity. Distribution matters more than threshold number.

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Operational discipline beats configuration: A disciplined 3-of-5 (hardware wallets, transaction simulation, public proposals, regular audits) is safer than a sloppy 7-of-9 (hot wallets, blind signing, no monitoring). Security isn't just setup—it's ongoing practice. Complacency kills, discipline compounds.

🏆 The Real Lesson

Multi-sig treasury security isn't about finding the perfect threshold—it's about building a security culture. The DAOs that survive decades: use hardware wallets exclusively, simulate every transaction before signing, require voice confirmation for large transfers, rotate signers regularly, conduct security audits, maintain geographic diversity, and never get complacent.

The ones that fail? They optimize for convenience over security. Hot wallets "just this once." Blind signing because "we trust each other." No public proposals because "it's faster." Multi-sig is a tool—security comes from how you use it. Culture compounds, shortcuts kill.

📝 Knowledge Check

Test your understanding with 5 questions. You need 3 correct answers to pass.

1. A DAO has a 5-of-9 multi-sig treasury. An attacker compromises 4 signer keys through phishing. What is the security status?

2. Which threshold model is most appropriate for a DAO with $75M treasury seeking balance between security and operational speed?

3. What is the PRIMARY attack vector responsible for ~70% of multi-sig breaches?

4. A multi-sig has all 7 signers working at the same company in the same city. What is the PRIMARY security risk?

5. What distinguishes secure multi-sig operations from insecure ones over the long term?

← Signer Management