📊 Allocation Strategies: Spend vs Save
Understand how to balance growth spending with runway preservation
Allocate DAO funds across competing priorities
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0 / 5 completed📈 Treasury Allocation: Risk vs Reward
How should a DAO split its treasury? 100% native token = maximum risk. 100% stablecoins = zero upside. The right allocation depends on stage, runway needs, and risk tolerance. Early DAOs can afford aggression. Mature DAOs need stability. Here are the three main strategies and their trade-offs.
🎮 Interactive: Allocation Strategy Comparison
Compare three treasury allocation strategies. See asset mix, risk profile, and real-world examples for each approach.
Balanced Sustainability
Mix native token exposure with stable reserves and yield
✅ Advantages
- • Downside protection
- • Operational stability
- • Yield generation
- • Diversified risk
❌ Disadvantages
- • Lower upside than aggressive
- • Requires active management
- • Selling pressure on native token
- • Complex governance
Best For: Mature DAOs seeking long-term sustainability
Real Example: Uniswap 2023: Sold 1% treasury (~$20M) for stables, maintaining 99% UNI
🎯 Choosing Your Strategy
Token going up? Runway 5+ years? Stay concentrated in native token. Capture maximum upside. Convert to balanced when market shifts.
Proven product, uncertain macro? Diversify 50-60% into stables and ETH. Maintain native exposure for upside but protect downside.
Token down 80%? Runway under 12 months? Emergency mode. Diversify heavily into stables. Survival first, upside later.
💡 Key Insight
There's no perfect allocation—only context-appropriate ones. Aggressive works until it doesn't (see: 2022 crashes). Conservative works but sacrifices upside. Most successful DAOs use dynamic allocation: aggressive in bull markets, gradual shift to balanced/conservative as risks rise. The key is rebalancing before crisis, not during. Next, we'll explore specific diversification tactics and how to execute them.