XDAO for the fam:
MULTISIG (Multi-signature) đ
Multisig is one of the most powerful security tools in a DAO. Itâs a special type of crypto wallet that requires more than one signature to authorize a transaction. For example, 3 out of 5. Or 7 out of 7. These rules are defined by the DAO participants
But what exactly does âsignatureâ mean? âïž
On the blockchain, each participant has a private key â a unique digital signature that proves the action is performed by them. The private key is stored only on the userâs side (in a wallet like Tonkeeper, MetaMask, etc.) and is never shared
When someone proposes to spend funds from a multisig wallet, the transaction remains âpendingâ until the required number of signatures are collected â confirmations from the other key holders. Until then, the funds stay untouched âł
Why this matters for a DAO:
â No one can withdraw funds alone without the approval of others, even if they have access
â A malicious actor who steals one participantâs private key still wonât be able to drain the treasury on their own
â Thereâs no need for a full DAO-wide voting process â decision-making is delegated to managing partners who hold keys to the multisig
If youâre serious about money and transparency â a multisig wallet is a must. Thatâs where real decentralization begins đ
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