How Do DAOs Prevent Hostile Takeovers by Large Token Holders?

DAOs employ several mechanisms to prevent hostile takeovers. One common method is to require a quorum, a minimum percentage of total tokens that must participate for a vote to be valid, preventing a small group from passing proposals.

Another strategy is time-locking, which introduces a delay between when a proposal is passed and when it is executed, allowing the community time to react. Some DAOs also use quadratic voting, where the cost to cast additional votes increases, reducing the power of large holders.

Finally, distributing tokens widely during the initial launch helps decentralize power from the start.