Curve DAO
by Curve Finance
Ethereum
Polygon PoS
Fantom
Avalanche
Quick Fact
In early 2025, Curve DAO initiated discussions to establish a formal treasury, aiming to redirect a portion of protocol fees to fund development and operations, addressing sustainability concerns.
Curve DAO is the decentralized governance body overseeing Curve Finance, a leading decentralized exchange (DEX) specializing in stablecoin trading. The DAO empowers CRV token holders to propose, discuss, and vote on changes affecting the protocol's development, treasury management, and broader ecosystem initiatives.
Governance Structure and Processes
Curve's governance process is designed to ensure community participation and protocol security:
Voting Mechanism: CRV token holders can lock their tokens to obtain veCRV, which grants voting power proportional to the amount and duration of the lock. This veCRV model incentivizes long-term commitment to the protocol.
Proposal Lifecycle: Proposals undergo stages including a forum discussion, off-chain temperature checks, and on-chain voting. There are three main types of votes: ownership, parameter, and emergency. Ownership votes require 30% quorum and 51% approval; parameter votes need 15% quorum and 30% approval.
Emergency DAO: A nine-member Emergency DAO can act swiftly to mitigate risks, such as pausing pools in case of vulnerabilities. This group can be overridden by the broader DAO if necessary.
Treasury and Financial Management
As of early 2025, Curve DAO's treasury primarily consists of CRV tokens, with approximately $16 million in assets. The DAO spends over $5 million annually on development, audits, and services, leading to concerns about sustainability.
To address this, proposals have been made to redirect a portion of protocol fees to a community fund, aiming to establish a more robust and diversified treasury. The goal is to ensure long-term financial health and the ability to fund ongoing operations without solely relying on CRV token sales.