DeFi Smart Contracts and Governance BDC Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   A governance proposal in a DAO can be executed only if it receives a 60% quorum of all outstanding governance tokens. An attacker wants to pass a malicious proposal. Which attack vector is most directly enabled by a low quorum requirement?

   • AThe attacker can use a flash loan to borrow tokens and vote, then return them
   • BThe attacker can buy a small percentage of tokens and pass a proposal if quorum is low
   • CThe attacker can spam the governance forum with fake proposals
   • DThe attacker can delay the proposal execution indefinitely
   Reveal Solution Discussion Select an answer first
2. 27expert · hard

   A DAO is considering implementing a governance model where token holders can vote on proposals, but a multi-sig committee has the power to veto any proposal. The DAO values both security and decentralization. Which statement best describes the trade-off?

   • AThe veto power reduces decentralization but provides a safety net against malicious proposals
   • BThe veto power has no effect on decentralization
   • CThe veto power makes the DAO fully compliant with regulations
   • DThe veto power increases decentralization because it gives more people power
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A DeFi protocol is planning to launch a governance token and wants to ensure compliance with securities regulations. The team is considering whether to make the token transferable or non-transferable. Which approach is more likely to reduce the risk of the token being classified as a security?

   • AMake the token transferable but only to accredited investors.
   • BMake the token transferable and list it on major exchanges.
   • CMake the token transferable but with a time lock on transfers.
   • DMake the token non-transferable and only usable for governance within the protocol.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   Which of the following is a key regulatory challenge for DeFi protocols?

   • AEnsuring that all transactions are private and untraceable
   • BGuaranteeing that all users are accredited investors
   • CMaking sure the protocol is compatible with all web browsers
   • DDetermining which jurisdiction's laws apply when the protocol is decentralized and global
   Reveal Solution Discussion Select an answer first
6. 30application · medium

   A DAO is considering moving from an on-chain voting system to an off-chain governance model using a multi-sig wallet to execute proposals. What is a key trade-off the DAO must accept?

   • AOff-chain voting requires no token holders to participate
   • BOff-chain voting is more transparent because votes are recorded on a public forum
   • COff-chain voting reduces gas costs but introduces a trust assumption in the multi-sig signers
   • DOff-chain voting eliminates the risk of governance attacks
   Reveal Solution Discussion Select an answer first