📝 Spending Governance: Proposal Evaluation
Discover how to assess and approve treasury spending requests
Allocate DAO funds across competing priorities
Your Progress
0 / 5 completed⚖️ Treasury Spending Governance
A diversified treasury is worthless if spending is uncontrolled. DAOs burn through treasuries fast: contributor salaries, grant programs, protocol development, marketing, audits. Without governance controls, treasuries drain in months. Here's how to balance speed vs security vs decentralization in treasury spending.
🎮 Interactive: Budget Allocation Analyzer
Model treasury spending proposals and budgets. See how proposal size, monthly budget, and emergency reserves affect operational runway.
Excellent: 40 months runway with 20% reserve. This budget supports 4 proposals/month sustainably.
🛡️ Governance Control Mechanisms
Click each mechanism to see details. Most DAOs use a hybrid approach combining multiple controls.
Treasury held in Gnosis Safe with M-of-N signature requirement (e.g., 4-of-7 signers). All spending requires threshold approval.
Small-to-medium DAOs ($5M-$50M) with trusted core team
- • Fast execution
- • Battle-tested
- • Low gas costs
- • Clear accountability
- • Centralization risk
- • Key person risk
- • Trust assumptions
- • No token holder control
Real Example: Most DAOs use Gnosis Safe: Uniswap, Compound, Aave all use multi-sig as execution layer
Typical Threshold: Typical: 3-of-5 for small DAOs, 5-of-9 for large DAOs
💡 Key Insight
There's no perfect treasury governance—only trade-offs. Multi-sig = fast but centralized. On-chain voting = decentralized but slow. Sub-committees = balanced but complex. Most successful DAOs use hybrid models: on-chain votes for strategy (budget allocation), committees for tactics (individual grants), and multi-sig for execution (fast payments). The key is progressive decentralization: start with trusted multi-sig for speed, add governance as you mature, and always maintain emergency reserves.