Governance & DAOs
Governance Attack
Malicious actors gaining voting control to pass harmful proposals
Definition
A governance attack occurs when malicious actors acquire enough voting power to pass harmful proposals, potentially draining treasuries, changing protocol parameters, or disrupting operations.
Example
An attacker could buy a large amount of governance tokens, propose to transfer all treasury funds to their address, and vote it through if they have majority control.
What to check
Treat it as a governance concept: check who has voting power, what can be changed, and whether minority users can exit. The main checks are: Treasury drainage; Protocol disruption; Loss of decentralization.
Risks to Consider
- Treasury drainage
- Protocol disruption
- Loss of decentralization
Common Questions
What does Governance Attack mean in DeFi?
Governance Attack means Malicious actors gaining voting control to pass harmful proposals. The useful question is not only the definition, but how the mechanism changes risk, return, liquidity, or governance for the user.
How is Governance Attack used in practice?
A practical example: An attacker could buy a large amount of governance tokens, propose to transfer all treasury funds to their address, and vote it through if they have majority control.
What should I check before relying on Governance Attack?
Check treasury drainage, protocol disruption, loss of decentralization. Also verify liquidity, oracle assumptions, admin controls, and whether the protocol has been tested during stressed markets.
