[Un]hackable DAOs

Example DAOs
Example DAOs

There are many types of DAOs, that means different protocols are required to handle specific cases.

Basics of DAO Protocols

First of all, DAO is a community, but on the tech level DAO is a proposals processor. Any processor programs have bugs/vulnerabilities. If to implement DAO as a set of smart contracts there are many levels of hacks:

  • Technical

  • Protocols level, DAO specific

  • Application level

Bitcoin can be considered as a first DAO protocol with voting mechanism, internal monetary systems. Where proposal == block, blockchain is a verification and confirmation mechanism in distributed consensus.

51% hack

Any voting system is hackable by 51% attack, if you have more than half of governance power (tokens) you can propose and execute any proposal. Hacker can transfer all DAOs money to any address.

Flexibility and adaptation is the answer
Flexibility and adaptation is the answer

Digital governance mechanisms and security are still under r&d. Obviously, no single solution is suitable for many different cases. Flexibility and adaptation is the answer.

Sci-fi scenario
Sci-fi scenario

Unhackable DAOs

Simple solution is to remove money from the equation, no money - nothing to hack.