What Is Multisig (Multi-Signature Wallet)?
Definition
A multisig wallet requires multiple private key signatures to authorize a transaction — commonly used by DAOs and teams to prevent any single person from moving funds unilaterally.
A standard wallet needs 1 signature. A multisig wallet needs M-of-N signatures (e.g., 3-of-5 means 3 out of 5 keyholders must approve).
- 2-of-3 — requires any 2 of 3 signers. Good for small teams.
- 3-of-5 — requires 3 of 5. Standard for DAO treasuries.
- 4-of-7 — higher security for large treasuries.
Multisig platforms: Safe (Ethereum/Base), Squads (Solana), Realms (Solana governance).
For token creators, transferring mint authority to a multisig (instead of revoking it) allows future minting under community consensus — useful for DeFi protocol tokens that need ongoing staking emissions.
Related Terms
DAO (Decentralized Autonomous Organization)
A DAO is an organization governed by smart contracts and token-holder votes rather than a board of directors — members collectively make decisions through on-chain proposals and voting.
Crypto Wallet
A crypto wallet is software that stores your private keys and lets you sign blockchain transactions — the gateway to interacting with DeFi protocols, DEXes, and token creation tools.
Private Key
A private key is a cryptographic secret that authorizes blockchain transactions — whoever has the private key controls the wallet and all its tokens. Never share it.
Governance (On-Chain)
On-chain governance is the process of making protocol decisions through token-holder voting — proposals, votes, and execution happen transparently on the blockchain.