DAO Treasury Native Token Concentration Hits 70%, Amplifying Downside Risk

GSR analysis reveals DAOs hold 70% of assets in native tokens, creating negative feedback loops during price drops and increasing operational vulnerability.

Woofun AI notes that GSR warns decentralized autonomous organizations face structural vulnerability by holding approximately 70% of treasury assets in self-issued tokens. This concentration creates a negative feedback loop where declining token prices simultaneously reduce treasury value and protocol revenue, weakening financial health. The firm observes that reactive hedging during volatility spikes is less effective, recommending proactive strategies such as separating operational funds from long-term holdings and utilizing options to mitigate adverse price movements.