GSR: Most DAOs Concentrate Approximately 70% of Treasury Assets in Native Tokens, Potentially Creating a Negative Feedback Loop
Source:
www.gsr.io
GSR's latest report points out that the treasury assets of most DAOs are highly concentrated in project native tokens. Price declines may further drag down protocol revenue and market activity, forming a procyclical negative feedback loop. GSR recommends project teams separate operational reserves from long-term holdings and mitigate downside risk through hedging.