A DAO is facing a governance crisis: a proposal to change the treasury's risk parameters is about to pass with a narrow majority, but many members believe the voting was influenced by a flash loan that temporarily increased voting power. What is the most effective way to address this vulnerability?

Use a centralized committee to override the vote

Implement a time-weighted voting power system that requires tokens to be held for a minimum period

Cancel the proposal and hold a new vote with the same rules

Increase the quorum requirement for this proposal only

A Web3 startup wants to allow users to earn rewards for contributing computing power to a distributed network. The startup also wants to prevent users from gaming the system by submitting fake work. Which mechanism is most appropriate?

Use a random selection process to choose contributors

Use a centralized server to verify all submissions

Use a proof-of-work consensus algorithm that requires computational effort

Use a reputation system where users rate each other

An artist collective wants to fund community-selected art projects using a shared treasury. They want decisions to be made by members who hold the collective's token, and they want the process to be transparent and resistant to a single leader overriding the group. Which approach best fulfills these requirements?

Create a DAO with a smart-contract treasury that releases funds only after a successful token-weighted vote.

Use a simple crowdfunding platform where the project with the most likes receives the treasury.

Appoint a single curator who decides which projects receive funding each month.

Set up a shared bank account managed by the founding members who vote informally on proposals.

A nonprofit wants to accept donations in cryptocurrency and ensure that donors can verify how funds are used without relying on the nonprofit's annual reports. Which Web3 mechanism directly supports this transparency requirement?

Issuing a stablecoin to donors that can be redeemed later

Using a private database to track donations and expenses

Publishing the donation wallet address and using a public blockchain explorer

Creating a DAO with a multi-signature wallet

A company wants to launch a Web3 marketplace where buyers and sellers transact without a central authority, but the company still needs to comply with anti-money-laundering (AML) regulations. Which approach best balances Web3 principles with regulatory compliance?

Use a public blockchain with no KYC, relying on pseudonymity

Use a centralized platform that performs KYC and mediates trades

Use a public blockchain with a KYC oracle that verifies identities off-chain

Use a permissioned blockchain with KYC-compliant participants and smart contracts for trades

EC-CouncilBlockchain Business Leader Certification

Domain 8Objective 3

Principles of Web3 and the Role of DAOs BBLC Practice Questions (Page 3)

Part of the DeFi, NFTs, and Web3 Business Models domain, which makes up ~6% of our current practice bank.

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Questions 11–15

11expert · hard
A DAO is facing a governance crisis: a proposal to change the treasury's risk parameters is about to pass with a narrow majority, but many members believe the voting was influenced by a flash loan that temporarily increased voting power. What is the most effective way to address this vulnerability?
Select an answer first
12expert · hard
A Web3 startup wants to allow users to earn rewards for contributing computing power to a distributed network. The startup also wants to prevent users from gaming the system by submitting fake work. Which mechanism is most appropriate?
Select an answer first
13application · medium
An artist collective wants to fund community-selected art projects using a shared treasury. They want decisions to be made by members who hold the collective's token, and they want the process to be transparent and resistant to a single leader overriding the group. Which approach best fulfills these requirements?
Select an answer first
14application · medium
A nonprofit wants to accept donations in cryptocurrency and ensure that donors can verify how funds are used without relying on the nonprofit's annual reports. Which Web3 mechanism directly supports this transparency requirement?
Select an answer first
15expert · hard
A company wants to launch a Web3 marketplace where buyers and sellers transact without a central authority, but the company still needs to comply with anti-money-laundering (AML) regulations. Which approach best balances Web3 principles with regulatory compliance?
Select an answer first

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