With DATs (Digital Asset Treasuries) getting a lot of attention lately, I wanted to share why I think they’re an important catalyst for the evolution of crypto ecosystems like Avalanche. Even in traditional capital markets, ALTs (alternative assets) as an asset class struggle to invite institutional capital. They generally have boom / bust cycles and invite short-term capital allocators looking to take advantage of low liquidity profiles and higher volatility regimes. In these traditional markets, at least there are vehicles institutions can use. In crypto, access is limited — and even when institutions can get exposure, those assets often aren’t put to work efficiently. This is where DATs come in. DATs create vehicles that institutional capital can access, with mandates to actively manage treasuries, raise funds, and support ecosystem growth. They bring a for-profit mindset, aligned incentives, and the potential for smarter, more transparent capital allocation. Yes, premiums to mNAVs in early DATs will fluctuate over time. Many will trade at a discount. But as the market matures, I expect the strongest DATs to rise to the top — the ones that manage capital actively, communicate clearly, and build trust in their strategies. Winners will emerge. One benefit that gets less attention: DATs can complement the role of Foundations. Today, Foundations are often asked to act as liquidity providers, lending their support to promising new projects and, on occasion, providing liquidity. But they’re not built to scale that forever. DATs can fill that role, introducing competition and market-driven capital allocation into the ecosystem. Some ask why Foundations would sell discounted tokens to DATs. The answer is simple: to help them raise external capital and use those funds to acquire tokens such as AVAX on the open market. That means cleaning up weak-handed sellers, telling a stronger story to capital allocators, and ultimately building deeper, more resilient AVAX treasuries. None of the current AVAX DATs have yet acquired tokens on the open market. But AGRI and AVAT have announced fundraising rounds and collectively stated goals to own $1.7B of AVAX or 13% of the circulating supply, and both intend to complete deals and begin purchasing in the near future. It’s early, but how this plays out could reshape how ecosystems scale capital — and how networks like Avalanche tell their story to the world. 🔺