kaal:claim:5254152-003

Fungible governance tokens deliver liquidity and transparency in DAO voting rights, but because they are tradable they simultaneously create exposure to vote buying and manipulation.

Source quote, verbatim

These tokens represent voting rights and can be traded, providing liquidity and transparency but also risking vote buying and manipulation.

From

Wulf A. Kaal, DAO Market Meta Analysis 2024 (2024), Fungible Governance Tokens, p. 5
https://ssrn.com/abstract=5254152 · source PDF

Cite as

Wulf A. Kaal, DAO Market Meta Analysis 2024 (2024). SSRN: https://ssrn.com/abstract=5254152

Holds when

DAOs whose voting rights are represented by tradable fungible tokens

Classification

failuresupport: assertedfailure: vote buying through tradable governance tokensfamily: token-transferability-defectgovernance-designtokenomicsdao

Related claims

extends kaal:claim:4529715-020 Fungible governance tokens expose a DAO to vote buying and other forms of manipulation.
extends kaal:claim:4015908-024 DAO governance built on fungible governance tokens is disfavored and dangerous because governance rights can b...

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