How Does a Decentralized Autonomous Organization (DAO) Governance Model Potentially Mitigate This Control? ▴ Learn

How Does a Decentralized Autonomous Organization (DAO) Governance Model Potentially Mitigate This Control?

A DAO governance model decentralizes decision-making power away from the core development team and distributes it among token holders. For a rug pull to occur, the developers would need to control the majority of the governance tokens to pass a proposal to unlock or drain the liquidity.

This model, if properly implemented, requires community consensus for major changes, making a unilateral, developer-led theft much harder to execute.

How Does an Immutable Contract Prevent Malicious Changes by a Developer?

What Is the Principal-Agent Problem in the Context of DAO Governance and Large Token Holders?

What Is a “Governance Token” and Its Role in a DAO?

What Is a “Rug Pull,” and How Does It Differ from a Vampire Attack in Terms of Malicious Intent?