In Web3 public blockchain security systems, whether DAOs should hold on-chain "security budget rights" is a nuanced issue. Granting DAOs control over security budgets could enhance decentralized governance, ensuring funds are allocated transparently for audits, bug bounties, or incident response. It aligns with Web3’s ethos of community-driven decision-making, potentially increasing trust and resilience. However, risks include governance attacks, where malicious actors manipulate voting to misallocate funds, or inefficiencies from fragmented decision-making. Centralized oversight, while less democratic, might offer faster, more coordinated responses to threats. A balanced approach could involve DAOs managing a portion of the security budget with clear, immutable rules, while critical decisions remain with a trusted multisig or foundation. This hybrid model mitigates risks while preserving decentralization. Ultimately, the decision depends on the chain’s maturity, community engagement, and threat landscape