@bettina434

DAO treasury allocations must be closely examined to ensure alignment with ecosystem objectives. Deviations, such as disproportionate holdings in volatile assets or excessive allocation to short-term incentives, may create instability and weaken governance credibility. Ideally, treasuries distribute tokens strategically across operational budgets, development incentives, and community rewards to maintain balance. Regular audits, reporting, and active governance oversight help identify and correct any deviations. A transparent and well-structured treasury ensures that tokens support long-term growth, ecosystem resilience, and fair participation. Conversely, unmanaged deviations can undermine confidence, reduce community engagement, and threaten the sustainability of the token economy.

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