Curriculum·Junior·J308
Governance, DAOs, and Airdrop Economics
Beanstalk Farms, 17 April 2022. An attacker took roughly $1B of flash loans from Aave, converted the proceeds into the protocol's governance instrument, and thereby held more than 67 percent of voting power.
Lesson 1 opens on
Arbitrum AIP-1, March and April 2023
Days after distributing its governance token, the Arbitrum Foundation put AIP-1 to holders, a package allocating 750 million ARB, worth close to $1B, to the Foundation. The Foundation stated that the vote would confirm a decision that had already been made. On-chain observers then established that the 750 million tokens had already been transferred to an administrative budget wallet several weeks earlier, that 40 million had been lent to an unnamed market participant, and that 10 million had been converted to fiat for operating costs.
The lessons
- J308-01Governance mechanicsTrace a proposal from draft to execution and name what each stage decidesabout 30 min · opens on Arbitrum AIP-1, March and April 2023
- J308-02Governance as an attack surfaceDistinguish acquiring the votes from changing the payload, which are different attacksabout 31 min · opens on The Tornado Cash governance takeover, 20 May 2023
- J308-03Airdrop farming, honestlyBuild the full expected value model including capital, gas, time and tax at receiptabout 42 min · opens on The Arbitrum airdrop, 23 March 2023
- J308-04Participating wellCompute your actual influence, directly and through delegationabout 31 min · opens on The Uniswap BNB deployment vote, February 2023
Labs
J308-L
Model a campaign end to end from a supplied card: gross, capital opportunity cost, gas, time at a real hourly rate, ordinary income tax at receipt, the net, the effective hourly rate, and the hit rate a portfolio of campaigns needs to break even. Present the number. Decide.