@dfsgerhuh

DAO using 50% of its treasury for cross-border crypto investments may split focus: the core team might divert resources from improving its own ecosystem (e.g., a DeFi DAO neglecting protocol upgrades) to managing investments. For revenue distribution, common models include token buybacks (to boost price) or direct dividends to holders, but clarity in rules is key. Potential conflicts of interest abound: if investment decisions are controlled by a small group of node operators, they may prioritize high-risk projects for short-term gains over the DAO’s long-term health. Additionally, investing in competing projects could undermine the DAO’s own product—e.g., a lending DAO investing in a rival lending protocol harms its user base.

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