Welcome to the Flipside Governance Team recap! Here’s a weekly summary of heady governance activity, our hard-hitting research & data analysis, and key news stories across the broader governance space.

Any DAO that has token-based voting faces the same inherent issue: that votes can be bought — and sold — quickly if those tokens are traded on exchanges. This has led to predatory voting attacks, where enough tokens to ram a proposal through were bought solely for voting and sold quickly afterwards. (You can read our blog post explaining the Beanstalk hack for an extreme version of this behavior)

In our current market, there are clear examples of this — with Uniswap, SushiSwap, and MonkeDAO being the most notable.

Flow launched on 7 October 2020 with a Proof of Stake consensus mechanism. Flow was developed by DapperLabs, the inventors of Crypto Kitties.

DAO governance can be scary. We know. Some of our proposals receive standing ovations, some were met with violent disapproval, but one thing is for sure — there is no better place to directly impact the direction of our space than in the depths of DAO governance.

DAOs, short for Decentralized Autonomous Organizations, are a novel way to organize human enterprise with more freedom for members and fewer organizational barriers that allows a fluid coming and going of contributors and maximum focus on community and value creation.

On 16 April 2022 hackers used a flash loan to purchase governance tokens for Beanstalk Farms. They used these tokens to vote with a supermajority (> 66%) on a proposal that granted them access to all the protocol’s funds. Shortly afterwards they completely drained Beanstalk’s smart contracts and managed to escape with $75mm in wrapped ETH.