In DAO Governance, What Is ‘Vampire Attack’ Risk and How Does Treasury Management Mitigate It?
A vampire attack is a governance risk where a competing protocol forks a successful DAO's code and attempts to attract its users and liquidity by offering superior token incentives. The attacker essentially "vampirizes" the original DAO's ecosystem.
Treasury management mitigates this by proactively using treasury funds to offer competitive incentives, fund continuous innovation, and secure key liquidity pools, making the original DAO a more attractive and resilient ecosystem for its users.