GSR: Most DAOs Concentrate Approximately 70% of Treasury Assets in Native Tokens, Potentially Creating a Negative Feedback Loop

TechFlow reports, on August 8, GSR's latest report points out that most DAOs in the crypto industry have structural deficiencies in treasury management, with about 70% of treasury assets concentrated in the project's native tokens.

GSR stated that this asset structure may form a procyclical negative feedback loop: when native token prices fall, treasury value shrinks, while protocol revenue and market activity are affected, further increasing the project's financial pressure.

Project teams usually seek hedging only after token prices fall, but at this time market implied volatility has often already risen, making risk protection costs significantly increase.

GSR recommends that DAOs should separate operating reserves from long-term token holdings, and consider utilizing collar (Collar) strategies to build downside protection, to reduce the impact of market declines on the treasury, and extend the project's capital runway during bear markets.

GSR believes that in the short term, more projects adopting hedging strategies may drive growth in crypto options market trading volume, but have limited impact on spot prices; in the medium term, if DAO treasury structures are improved, it is expected to reduce systemic selling pressure in the market.