DAO governance can be scary. We know. Some of our proposals receive standing ovations, some were met with violent disapproval, but one thing is for sure — there is no better place to directly impact the direction of our space than in the depths of DAO governance. So, dear reader, if you are on the fence about jumping in and contributing to DAO governance, let us encourage you with a hearty: “LFG!! 🚀” This piece will give you an overview of the tools of the trade, and how to use them well. As...

DAO governance can be scary. We know. Some of our proposals receive standing ovations, some were met with violent disapproval, but one thing is for sure — there is no better place to directly impact the direction of our space than in the depths of DAO governance. So, dear reader, if you are on the fence about jumping in and contributing to DAO governance, let us encourage you with a hearty: “LFG!! 🚀” This piece will give you an overview of the tools of the trade, and how to use them well. As...

… and what governance should be aware aboutDAOs, short for Decentralized Autonomous Organizations, are a novel way to organize human enterprise with more freedom for members and fewer organizational barriers that allows a fluid coming and going of contributors and maximum focus on community and value creation. Most DAOs start out small and attract members and contributors as they tackle challenges and solve problems. The speed of growth is governed by network effects, as this article will exp...

… and what governance should be aware aboutDAOs, short for Decentralized Autonomous Organizations, are a novel way to organize human enterprise with more freedom for members and fewer organizational barriers that allows a fluid coming and going of contributors and maximum focus on community and value creation. Most DAOs start out small and attract members and contributors as they tackle challenges and solve problems. The speed of growth is governed by network effects, as this article will exp...

Any DAO that has token-based voting faces the same inherent issue: that votes can be bought — and sold — quickly if those tokens are traded on exchanges. This has led to predatory voting attacks, where enough tokens to ram a proposal through were bought solely for voting and sold quickly afterwards. (You can read our blog post explaining the Beanstalk hack for an extreme version of this behavior) Yet since its inception, DAO governance has been looking for a way to align the behavior of token...

Any DAO that has token-based voting faces the same inherent issue: that votes can be bought — and sold — quickly if those tokens are traded on exchanges. This has led to predatory voting attacks, where enough tokens to ram a proposal through were bought solely for voting and sold quickly afterwards. (You can read our blog post explaining the Beanstalk hack for an extreme version of this behavior) Yet since its inception, DAO governance has been looking for a way to align the behavior of token...

The All in One BlockchainFlow launched on 7 October 2020 with a Proof of Stake consensus mechanism. Flow was developed by DapperLabs, the inventors of Crypto Kitties. Dapper wanted to address the issues they saw deploying on Ethereum. They did so by focusing on scalability via fast and cheap transactions and security via a different smart contract language (Cadence) that made writing secure code easier. Here’s how the Flow documentation puts it: There are four pillars that make Flow unique am...

The All in One BlockchainFlow launched on 7 October 2020 with a Proof of Stake consensus mechanism. Flow was developed by DapperLabs, the inventors of Crypto Kitties. Dapper wanted to address the issues they saw deploying on Ethereum. They did so by focusing on scalability via fast and cheap transactions and security via a different smart contract language (Cadence) that made writing secure code easier. Here’s how the Flow documentation puts it: There are four pillars that make Flow unique am...

The heistOn 16 April 2022 hackers used a flash loan to purchase governance tokens for Beanstalk Farms. They used these tokens to vote with a supermajority (> 66%) on a proposal that granted them access to all the protocol’s funds. Shortly afterwards they completely drained Beanstalk’s smart contracts and managed to escape with $75mm in wrapped ETH. The heist was a first of a kind. It didn’t exploit a technical vulnerability in a smart contract but focused on a weakness in the governance const...

The heistOn 16 April 2022 hackers used a flash loan to purchase governance tokens for Beanstalk Farms. They used these tokens to vote with a supermajority (> 66%) on a proposal that granted them access to all the protocol’s funds. Shortly afterwards they completely drained Beanstalk’s smart contracts and managed to escape with $75mm in wrapped ETH. The heist was a first of a kind. It didn’t exploit a technical vulnerability in a smart contract but focused on a weakness in the governance const...

Witnessing the maturation of various DAOs, decentralization is not linear. It fluctuates, depending on market conditions and user growth, with peaks and troughs.In our current market, there are clear examples of this — with Uniswap, SushiSwap, and MonkeDAO being the most notable. This variation is healthy — and important as DAOs gain traction in popularity, TVL, and mainstream adoption. With a range of participants and goals, we will see a world where DAOs exist in centralized and decentraliz...

Witnessing the maturation of various DAOs, decentralization is not linear. It fluctuates, depending on market conditions and user growth, with peaks and troughs.In our current market, there are clear examples of this — with Uniswap, SushiSwap, and MonkeDAO being the most notable. This variation is healthy — and important as DAOs gain traction in popularity, TVL, and mainstream adoption. With a range of participants and goals, we will see a world where DAOs exist in centralized and decentraliz...