How Does a DAO Ensure Its Core Developers Cannot Front-Run the Protocol’s Users?

DAOs ensure developer fairness through code transparency and decentralized governance. The core code is open-source and audited.

Crucially, changes or upgrades are typically subject to a time-lock mechanism, meaning a proposal must pass a community vote and then wait a predetermined period before execution. This prevents developers from deploying a change and immediately exploiting it before users can react.

What Are the Key Metrics for Measuring Developer Activity on a Blockchain Protocol?
How Can Users Verify the Code of a Rebase Token’s Smart Contract?
What Are the Risks Associated with Smart Contract Upgrades in a Community-Driven Derivatives Protocol?
Can Quadratic Voting Be Applied to Decisions beyond Funding, Such as Protocol Upgrades?
Can a Non-Profit Organization Develop Tools to Protect Users from Mempool Exploitation?
How Can a Time-Lock Smart Contract Be Used to Prevent the Immediate Withdrawal of LP Tokens?
How Can a Low Number of Core Developers Expose a Protocol to Security Vulnerabilities?
How Does a Smart Contract Audit Differ from Traditional Code Auditing?

Glossar