DAO to (Anonymous) DAO Transactions

Blockchain assets are increasingly controlled by organizations rather than individuals. DAO treasuries, consortium wallets, and custodial exchanges rely on threshold authorization and multi-party key management, yet existing payment mechanisms still target single-user wallets, leaving no unified solution for organizational transfers. We formalize the problem of DAO-to-(anonymous)-DAO transactions and present Dao squared, a framework that enables one threshold-controlled organization to pay another, optionally with recipient anonymity, while keeping received funds under distributed control. Dao squared combines three components: distributed key derivation (DKD) for non-stealth child addresses, distributed stealth-address generation (DSAG) for unlinkable one-time destinations, and for authorization. For ordinary transfers, the receiver derives a non-stealth address via DKD; for anonymous transfers, it derives a stealth address via DSAG. The sender then threshold-signs the payment, and the receiver redeems the funds without reconstructing any master secret. We formally prove its security and evaluate a prototype. The core of an anonymous DAO-to-DAO transaction for a typical-sized (e.g., 7-member) DAO finishes in under 28,ms with about 2.8,KB of communication, and scales linearly with DAO size.