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

MEV allows block producers to front-run, sandwich, or censor user transactions for profit, undermining fairness and creating centralization pressure as sophisticated operators capture disproportionate value.

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

Burn-and-mint equilibrium ties token supply to network demand: high usage burns more tokens (reducing supply) while validators earn new tokens, creating an organic price stabilization loop.

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

Rage quit allows dissenting DAO members to exit with their treasury share before an approved proposal they opposed takes effect, protecting minority stakeholders from majority decisions.

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

Without slashing, validators in naive PoS had no economic cost to voting on every fork, making double-spends easier since supporting all chains was costless and potentially profitable.

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

Multisig treasuries implement an m-of-n signature requirement for transactions, distributing financial control among multiple trusted parties and preventing single-point compromise or abuse.

(CBSA) Certified Blockchain Solution Architect Practice Test

(CBSA) Certified Blockchain Solution Architect Practice Test

CBSA Blockchain Governance & Economics 2