kaal:claim:4067783-011

Insider rug pulls are not the only exploit path: a DAO can also be attacked from the outside whenever its governance grants voting power through fungible tokens.

Source quote, verbatim

But these inside rug pulls are not the only exploitative mechanism within DAOs. DAOs can also be exploited from the outside if the DAO's governance allows fungible voting power.

From

Wulf A. Kaal, DAO Fallacies (2022), II.2.b) External Takeovers, p. 7
https://ssrn.com/abstract=4067783 · source PDF

Cite as

Wulf A. Kaal, DAO Fallacies (2022). SSRN: https://ssrn.com/abstract=4067783

Holds when

governance voting power is denominated in fungible tokens

Classification

failuresupport: arguedfailure: External governance takeoverfamily: plutocratic-captureconsensus-and-securitytokenomicsgovernance-design

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 48f1e307cdbbe28c7843f7744d0ba8cf01662f257a53f2066a7a6c7e03a5acec. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/fc2dc039a3153f8c...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/4067783-011.md | sha256sum