DAO Treasuries Overexposed to Native Tokens, GSR Warns

Crypto market maker GSR has warned that decentralized autonomous organizations (DAOs) are exposing themselves to significant financial risk by holding large portions of their treasuries in native tokens.

The average DAO holds around 70% of its assets in self-issued tokens, leaving little buffer when prices fall. This creates a concentration risk where the value of the treasury holdings drops simultaneously with reduced protocol revenue and lower market activity.

GSR notes that this cycle can quickly weaken a DAO's financial health, making it harder to fund operations or respond to market changes.