What Is "Governance Front-Running" in a DAO Context? ⎊ Path

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.

How Does a Decentralized Governance System Vote on Adding New Collateral Types?

What Is the Verifier’s Role in a Zero-Knowledge Proof Protocol?

What Is a Common Mechanism for Vesting or Locking Treasury Tokens to Prevent Immediate Governance Abuse?

Explain the Concept of ‘Front-Running’ and Its Relationship to Slippage

What Is the Primary Mechanism a DAO Uses to Enact Changes to a Protocol?

What Is the Concept of ‘Futarchy’ and How Does It Relate to Governance?

How Can an Investor Quantify the Potential Financial Impact of a Successful Governance Proposal?

How Can an Options Trader Use a “Synthetic Short” Position to Achieve a Similar Outcome to a Double-Spend?