Shared Governance Security

51 % Attacks

Occurs when an entity obtains a majority stake in a governance token and attempts to seize control of the project’s assets.

Centralization Weak Points

Projects that concentrate significant power within a single individual or organization are susceptible to risks such as compromised private keys or unethical behavior by core team members.

Risk-Free Value

When the total value governed by a project surpasses the value of its governance token, it becomes profitable to assume control of the governance token and push malicious proposals to exploit the DAO.

Lack of Transparency

When decision-making processes, power structures, and guidelines are unclear, users become confused, leaving the project vulnerable to attacks.

Rules Not Being Followed

In cases where decision-making powers lack enforceability, harmful transactions can be executed either maliciously or accidentally.