GSR: Most DAOs Hold Around 70% of Treasury Assets in Native Tokens, Creating Negative Feedback Loops According to the report from GSR, crypto treasury management has major structural flaws. Most DAOs hold around 70% of their treasury assets in their own native tokens, causing

What happened

A GSR report found that most decentralized autonomous organizations (DAOs) keep about 70% of their treasury assets in their own native tokens, which can create negative feedback loops.

Confirmed

Global impact / market context

Holding a large share of treasury in a single, volatile token means a price drop can quickly shrink a DAO’s funding pool, limiting its ability to finance projects and increasing financial risk.

Analyst inference

The finding highlights a broader issue in crypto where many projects concentrate assets, contrasting with traditional funds that diversify to manage risk, and it may influence how investors view DAO stability.

Analyst inference

What to watch

1. Whether GSR or other analysts release follow‑up data showing changes in DAO asset allocation percentages over the next several quarters, as reported in the study. Proposed
2. If prominent DAOs announce plans to diversify their treasuries into stablecoins or other cryptocurrencies to reduce volatility exposure, in response to the GSR findings. Proposed
3. Regulatory discussions or guidance that could pressure DAOs to adopt more balanced treasury management practices, following concerns highlighted by the GSR report on token concentration. Proposed

Evidence

• x.com