Treasury and runway

The case used in this module

Each module tells its own made-up Brindlecove story, so details can differ from one module to the next.

Key words

Treasury

The money an organisation holds to pay its way: cash at banks, stablecoins, tokens and other assets.¹²

Native token

A project's own token, such as UNI for Uniswap or OP for Optimism. Many DAO treasuries hold mostly their native token.³⁴

Operating expenses

The everyday costs of running an organisation, such as payroll, legal, accounting and office costs.⁵

Runway

How long the money an organisation can spend will cover its operating expenses, usually counted in months.⁶⁷

Stablecoin floor

A rule that a set amount must always be kept in stablecoins. ENS DAO's 2026 policy sets it at three years of operating expenses.⁷

Stress test

Checking how a plan or balance sheet would hold up under a hypothetical bad scenario, such as a deep recession or a big price fall.⁸

Concentration

Holding a large share of a treasury in one asset, or with one bank, platform or protocol.³⁷

Custody risk

The risk of losing assets held for you because the holder goes bust, is careless, commits fraud or keeps poor records.⁹

Deposit insurance

Government cover for bank deposits if a bank fails. In the US it covers $250,000 per depositor, per insured bank, per ownership category, and not crypto.¹⁰

Investment policy statement (IPS)

A written policy that sets a treasury's goals, risk limits, allowed assets, roles and reporting.⁷

TWAP order

An order that splits a large trade into smaller limit orders spread over time. TWAP stands for time-weighted average price.¹¹

Private token sale

Selling tokens directly to chosen buyers instead of on an open market, often with a lock-up.⁴¹²

Lock-up

An agreement that stops holders selling for a set time.¹³⁴

Separation of duties

The principle that no one person should have enough power to misuse a system alone. For example, the person who approves a payment should not also prepare it.¹⁴