DAOs need to rethink their governance structures towards multi-class share systems, similar to Silicon Valley giants like Meta, to prevent governance attacks.
In DAOs, where each token counts as one vote, governance attacks can occur easily when a small number of large token holders collaborate, as seen in the Compound incident.
Meta’s dual-class share structure provides a strong safeguard against governance attacks, allowing Mark Zuckerberg substantial control with more weighted voting rights compared to public shareholders.
Critics argue that the recent governance attack on Compound is a direct result of a flawed voting system design rather than a lack of engagement from regular voters.
#dao-governance #multi-class-structure #governance-attacks #token-holder-dynamics #compound-incident
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