Governance Models for Blockchain Networks BBLC Practice Questions (Page 8)

Questions 36–40

1. 36expert · hard

   A governance proposal on a network using token-weighted voting is facing a 'voter apathy' problem. Most token holders do not vote, and a small group of active voters is passing proposals that favor their interests. The team wants to increase participation without giving up the principle of one-token-one-vote. Which approach is most effective?

   • AReduce the voting period to encourage quick decisions
   • BIntroduce a delegation system where token holders can assign their votes to active participants
   • CAllow only long-term token holders to vote
   • DImplement a quorum requirement of 50% of all tokens
   Reveal Solution Discussion Select an answer first
2. 37expert · hard

   A governance proposal on a network using delegated proof-of-stake (DPoS) is facing a 'governance attack' where a small number of large delegates are coordinating to push through self-serving changes. The network's constitution requires a majority of token holders to approve any change, but the delegates control most of the voting power. Which mitigation would be most effective?

   • AIncrease the number of delegates from 21 to 101
   • BAllow delegates to vote on behalf of token holders without consent
   • CRequire a supermajority of delegates to approve changes
   • DImplement a mechanism for token holders to revoke delegation at any time
   Reveal Solution Discussion Select an answer first
4. 38expert · hard

   A multinational enterprise is joining a public blockchain network that uses a hybrid governance model. The enterprise's legal team requires that any change to the network's consensus algorithm must be approved by the enterprise's board of directors before the enterprise's node will adopt it. How can the enterprise ensure this requirement is met within the network's governance process?

   • AThe enterprise should ask the network's foundation to approve on its behalf
   • BThe enterprise should configure its node to only upgrade after an internal board approval process
   • CThe enterprise should rely on the network's on-chain voting to make the decision
   • DThe enterprise should ignore the requirement because the network is decentralized
   Reveal Solution Discussion Select an answer first
5. 39expert · hard

   A global blockchain project is subject to data protection regulations in multiple jurisdictions. The project uses a hybrid governance model with an off-chain foundation and on-chain voting. The foundation wants to ensure that governance decisions comply with varying legal requirements. What is the most critical consideration?

   • AEnsuring that the on-chain voting process is transparent and auditable
   • BAllowing token holders to vote on all governance matters, including legal compliance
   • CEstablishing a legal review process for governance proposals before they are put to a vote
   • DDelegating all governance decisions to the foundation to ensure consistency
   Reveal Solution Discussion Select an answer first
6. 40expert · hard

   A multinational corporation is participating in a blockchain consortium that uses a hybrid governance model. The corporation is subject to strict data protection regulations in its home country. The consortium is considering a proposal that would store certain transaction data on-chain. What should the corporation's representative do?

   • AVote against the proposal in the on-chain vote
   • BIgnore the proposal because it is unlikely to pass
   • CRaise the compliance concern in the off-chain council and propose a legal review
   • DThreaten to leave the consortium if the proposal passes
   Reveal Solution Discussion Select an answer first