A DAO treasury holds a significant amount of stablecoins and wants to generate yield to fund ongoing operations. The community is risk-averse and wants to maintain the ability to withdraw funds quickly if needed. They are considering (1) depositing into a DeFi lending protocol, (2) buying a basket of blue-chip NFTs, or (3) keeping funds in a multi-sig wallet. Which option best balances yield, liquidity, and risk?

Allocate the entire treasury to blue-chip NFTs for potential appreciation.

Deposit a portion of the treasury into a reputable DeFi lending protocol, keeping a larger portion in the multi-sig wallet for operational liquidity.

Keep all funds in the multi-sig wallet and earn no yield.

Deposit the entire treasury into a high-yield DeFi protocol to maximize returns.

A DAO is planning to hire a developer to implement a feature. The community wants to ensure that the developer is paid only after the work is verifiably completed. Which DAO mechanism best supports this outcome?

Pay the developer upfront from the treasury

Use a multi-signature wallet controlled by the developer and the DAO

Use a smart contract that releases funds upon a successful community vote

Rely on the developer's reputation and pay after a fixed time

A DAO is considering whether to store its governance proposals on-chain or off-chain. The community values low transaction costs and fast voting, but also wants a tamper-evident record. Which approach best balances these needs?

Store proposals only on a centralized website

Store proposal summaries on-chain and full details on IPFS with a hash reference

Store all proposal details on-chain

Store proposals in a private database accessible to DAO members

A company wants to tokenize its loyalty program. They want customers to earn and redeem tokens across multiple partner businesses, but they also need to comply with financial regulations and prevent money laundering. Which design best balances decentralization with regulatory compliance?

Issue tokens on a public blockchain with no KYC to maximize decentralization.

Issue loyalty tokens on a permissioned blockchain with KYC/AML checks for participants, while allowing token transfers only among verified members.

Create a stablecoin pegged to the local currency and distribute it to customers.

Use a centralized database and issue points that can only be used within a single company.

A decentralized identity platform wants to give users control over their personal data while allowing verifiers (e.g., banks) to confirm credentials without seeing the underlying data. The platform also wants to avoid a single point of failure. Which approach best meets these requirements?

Use self-sovereign identity with verifiable credentials and zero-knowledge proofs, anchored on a decentralized ledger.

Store all user data in a centralized identity provider's database.

Use a public blockchain to store all personal data in plaintext.

Use a federated identity system where each bank stores its own copy of user data.

EC-CouncilBlockchain Business Leader Certification

Domain 8Objective 3

Principles of Web3 and the Role of DAOs BBLC Practice Questions (Page 5)

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

35questions here

7free pages

2concepts

Questions 21–25

21expert · hard
A DAO treasury holds a significant amount of stablecoins and wants to generate yield to fund ongoing operations. The community is risk-averse and wants to maintain the ability to withdraw funds quickly if needed. They are considering (1) depositing into a DeFi lending protocol, (2) buying a basket of blue-chip NFTs, or (3) keeping funds in a multi-sig wallet. Which option best balances yield, liquidity, and risk?
Select an answer first
22application · medium
A DAO is planning to hire a developer to implement a feature. The community wants to ensure that the developer is paid only after the work is verifiably completed. Which DAO mechanism best supports this outcome?
Select an answer first
23application · medium
A DAO is considering whether to store its governance proposals on-chain or off-chain. The community values low transaction costs and fast voting, but also wants a tamper-evident record. Which approach best balances these needs?
Select an answer first
24expert · hard
A company wants to tokenize its loyalty program. They want customers to earn and redeem tokens across multiple partner businesses, but they also need to comply with financial regulations and prevent money laundering. Which design best balances decentralization with regulatory compliance?
Select an answer first
25expert · hard
A decentralized identity platform wants to give users control over their personal data while allowing verifiers (e.g., banks) to confirm credentials without seeing the underlying data. The platform also wants to avoid a single point of failure. Which approach best meets these requirements?
Select an answer first

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