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The term has been derived from the root धन्(dhan, “to run, move quickly”). In a literal sense, it refers to a running race, but came to mean any contest or strife as a result of semantic generalization. By further extension, it connotes anything that is contested or striven for, viz. prize, booty, wealth, treasure. The root धन्(dhan) is from Proto-Indo-Iranian*dʰanH-, from Proto-Indo-European*dʰenh₂-(“to run, flow”).
saṃsṛṣṭaṃ dhanamubhayaṃ samākṛtamasmabhyaṃ dattāṃ varuṇaśca manyuḥ. bhiyaṃ dadhānā hṛdayeṣu śatravaḥ parājitāso apa ni layantām.
For spoil let Varuṇa and Manyu give us the wealth of both sides gathered and collected; And let our enemies with stricken spirits, o’erwhelmed with terror, slink away defeated.
^ Lubotsky, Alexander (2011) “dhani”, in The Indo-Aryan Inherited Lexicon (in progress) (Indo-European Etymological Dictionary Project), Leiden University
^ Mayrhofer, Manfred (1992) “DHAN¹”, in Etymologisches Wörterbuch des Altindoarischen [Etymological Dictionary of Old Indo-Aryan] (in German), volume I, Heidelberg: Carl Winter Universitätsverlag, page 772