What Is "Governance Front-Running" in a DAO Context? ▴ Learn

What Is “Governance Front-Running” in a DAO Context?

Governance front-running is the act of trading based on non-public knowledge of an upcoming, market-moving governance proposal or vote outcome. For example, a large token holder who knows a proposal to change a protocol fee will pass could trade the underlying asset before the vote is finalized and the market reacts.

This is an exploitation of informational advantage derived from the governance process.

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