CBSA Blockchain Governance & Economics 2

Question 1

What is 'miner extractable value' (MEV) and why is it a governance concern for blockchain architects?

Accepted Answer

Profit miners or validators can extract by reordering, inserting, or censoring transactions within a block

Answer

Revenue earned by miners from block rewards only

Answer

The cost of mining hardware as a percentage of block reward

Answer

Token fees collected by governance contracts

Question 2

In token economics, what does a 'burn-and-mint equilibrium' model achieve?

Accepted Answer

It balances token demand and supply by burning tokens proportional to service usage and minting new tokens as rewards

Answer

It maintains a fixed total token supply by burning old tokens and minting new ones at the same rate

Answer

It automatically pegs the token price to a fiat currency

Answer

It replaces staking rewards with deflationary pressure from transaction fees

Question 3

What is a 'rage quit' mechanism in a Moloch DAO-style governance system?

Accepted Answer

A member's right to exit the DAO and withdraw their proportional share of treasury assets before a proposal executes

Answer

A penalty applied to members who vote against winning proposals

Answer

A mechanism to remove inactive members from the DAO

Answer

An emergency shutdown triggered when treasury funds fall below a threshold

Question 4

Which incentive design problem does a 'nothing-at-stake' attack exploit in early proof-of-stake systems?

Accepted Answer

Validators can earn rewards by supporting multiple fork chains simultaneously at zero cost, undermining finality

Answer

Validators with no tokens can still participate in consensus by borrowing stake

Answer

Block rewards are too low to incentivize honest validation

Answer

Validators can steal stake from delegators through slashing

Question 5

What is the role of a 'multisig treasury' in a DAO's financial governance?

Accepted Answer

To require multiple designated signatories to approve fund disbursements, preventing unilateral treasury access

Answer

To mint new tokens for DAO operations automatically

Answer

To invest DAO funds in DeFi protocols autonomously

Answer

To convert DAO tokens to stablecoins for operational expenses

Question 6

In blockchain economics, what is the 'tragedy of the commons' problem as it applies to shared protocol resources?

Accepted Answer

Individual rational actors overuse shared resources (like block space) in ways that collectively degrade the network for everyone

Answer

Validators collectively overproduce blocks, increasing network congestion

Answer

Governance token holders avoid voting because their individual vote has minimal impact

Answer

Mining pools collectively capture more rewards than solo miners, centralizing the network