Recommended Thresholds

Introduction

Choosing the right threshold is one of the most important decisions when creating a vault.

A threshold determines how many members must approve a proposal before it can be executed.

Higher thresholds generally increase security but may reduce flexibility.

Lower thresholds increase convenience but may introduce additional risk.

This page provides recommended configurations for common use cases.

Solo User Vault

Configuration:

1-of-1

Best for:

Personal vaults
Individual treasury management
Single operator setups
Testing environments

Advantages:

Fastest approval process
No coordination required
Simple to manage

Considerations:

A single compromised wallet can approve and execute proposals.

Small Team Vault

Configuration:

2-of-3

Best for:

Startup teams
Small DAOs
Friends managing a shared treasury
Project founders

Advantages:

Strong balance between security and convenience
One member can be unavailable without blocking operations
Most widely used multisig configuration

Considerations:

Requires coordination between members

Recommended for most teams.

Medium Team Vault

Configuration:

3-of-5

Best for:

Growing projects
Community treasuries
Larger operational teams

Advantages:

Increased resistance against compromised members
Strong governance protections
Maintains operational flexibility

Considerations:

More approvals required before execution

Recommended for established projects managing significant treasury value.

High Security Vault

Configuration:

4-of-5

Best for:

Large treasuries
Protocol reserves
Long-term treasury storage
High-value assets

Advantages:

Extremely difficult for a minority of members to abuse
Strong protection against key compromise

Considerations:

Slower decision making
Requires substantial coordination

Recommended when security is more important than speed.

Maximum Security Vault

Configuration:

5-of-5

Best for:

Emergency reserves
Long-term storage
Highly sensitive treasury assets

Advantages:

Every member must approve
Maximum governance control

Considerations:

Any unavailable member blocks execution
Operationally difficult for active treasury management

Generally not recommended for day-to-day operations.

Recommended Configurations

Team Size	Recommended Threshold
1 Member	1-of-1
3 Members	2-of-3
5 Members	3-of-5
7 Members	4-of-7
9 Members	5-of-9

These configurations provide a strong balance between security and usability.

Thresholds And Privacy

Thresholds affect governance security.

Privacy features operate independently.

Whether a vault uses:

1-of-1
2-of-3
3-of-5
5-of-7

all Privacy Pump privacy features remain available.

This includes:

Private Deposits
Protected Withdrawals
Controlled Release
Batch Routing
Logos Communication

Security and privacy work together, but they serve different purposes.

Our Recommendation

For most teams:

2-of-3

3-of-5

provides the best balance between security, resilience, and operational efficiency.

These configurations are strong enough to protect treasury assets while remaining practical for everyday use.

Key Takeaway

The best threshold is not necessarily the highest threshold.

The best threshold is the one that your team can consistently operate without creating unnecessary friction.

Security should strengthen operations, not prevent them.