# kaal:claim:4067783-011

**Claim.** 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.

**Type.** failure  **Support.** argued

**Holds when.**

- governance voting power is denominated in fungible tokens

**Source quote.**

> 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, page 7

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

**Verify.** sha256 of source PDF `48f1e307cdbbe28c7843f7744d0ba8cf01662f257a53f2066a7a6c7e03a5acec` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202022%20-%20DAO%20Fallacies.pdf

**Failure mode.** External governance takeover  (family: plutocratic-capture)

**Topics.** consensus-and-security, tokenomics, governance-design

**Keywords.** external-attack, fungible-tokens, voting-power, governance

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.