Importance of treasuries

How treasuries impact peoples lives and what opportunities exist to improve treasury systems

How treasuries impact peoples lives

Treasuries have a multitude of ways in which they influence peoples lives:

  • Income - People often rely on treasuries to receive their income. Nation state, corporation and Web3 ecosystem treasuries all have many contributors who are reliant on the income they receive from these ecosystems.

  • Economic stability & growth - The decision of where assets are disbursed can have a big influence on the stability and growth of a community. Effective treasury management with impactful capital allocation can give any nation state, corporation or Web3 ecosystem a competitive advantage over competing communities.

  • Taxation policies - Taxation can impact peoples income, investment returns and cost of living. Taxation policies are often set or influenced by the treasuries for both nation states and Web3 ecosystems. For nation states this could mean changing income or capital gains tax, where as for Web3 networks this could mean changing the protocols transaction fees.

  • Access to capital - The vast scale of capital being managed by nation states, corporations and Web3 ecosystems combined directly impacts what initiatives and people get access to capital. These treasuries will determine whether there is equal access to treasury assets and what purposes and initiatives can receive any funding. A key question to ask for how these treasuries under management is whether the outcomes of these treasuries are beneficial to the wider community involved or only to a select few?

  • Risk mitigation - How effectively a treasury is managed will influence how a community is able to respond to sudden adverse events such as economical turmoil or natural disasters. Good treasury management will mean doing risk management to better forecast the possibility and risks of these types of events and creating a plan for how an ecosystem can respond to those events if they occurred.

  • Product & services availability - The decisions made by treasuries about how funds are disbursed to certain initiatives will influence what products and services will become for the ecosystem. For nation states this can mean determining what public services and infrastructure gets funded, for corporations this can mean what new products, services and improvements get created and provided and for Web3 ecosystems this could mean what network upgrades, open source software or new applications are developed.

Opportunity for improving treasury systems

Improving the systems and processes used by treasuries represents a massive opportunity for improving society. Two key opportunities include:

  • Economic stability, growth & efficiency gains - There are trillions of dollars in value being managed in treasuries across nation states, corporations and Web3 ecosystems. Even small percentage improvements in how these treasuries are managed and disbursed results in billions of dollars of opportunity for efficiency improvements.

  • Impactful initiatives & public goods - Treasuries ultimately exist to help the communities that own and operate them. Better management of treasuries represent an opportunity to more effectively align capital towards impactful initiatives such as public goods. Effective treasury systems can help with the creation of more egalitarian approaches that help to provide people with more equal and fair access to capital and opportunities.

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