DAO Governance and Community Flashcards

What is a 'quorum' in the context of DAO voting?

Answer: The minimum participation threshold required for a vote to be valid

A quorum is the minimum percentage or number of token holders who must participate for a governance vote to be considered legitimate.

In an NFT art DAO, what does 'delegated voting' allow members to do?

Answer: Transfer their voting power to another trusted member

Delegated voting lets token holders assign their governance weight to another member who votes on their behalf, increasing participation efficiency.

Which mechanism is commonly used to prevent wealthy members from dominating NFT DAO votes?

Answer: Quadratic voting

Quadratic voting makes the cost of additional votes increase quadratically, reducing the outsized influence of large token holders.

What is a 'multi-sig wallet' and why do NFT DAOs use them?

Answer: A wallet requiring multiple approvals before funds move, used for security

Multi-sig wallets require a set number of signers (e.g., 3 of 5) to approve transactions, preventing any single person from unilaterally controlling treasury funds.

What is a DAO 'snapshot' in NFT governance?

Answer: A gasless off-chain voting platform used by many NFT communities

Snapshot is a popular off-chain voting tool that lets DAOs conduct gasless votes by recording token balances at a specific block height.

When an NFT DAO votes to fund a new artist residency program, where do the funds typically come from?

Answer: The DAO treasury, funded by primary sales or royalties

DAO treasuries are typically funded through primary NFT sales, secondary royalty revenue, or token issuance, and governed by community votes.

What is the purpose of a 'time-lock' on a DAO governance proposal?

Answer: To enforce a waiting period between vote approval and execution, giving members time to react

A time-lock delays the execution of approved proposals, giving community members a window to exit or respond if they disagree with the outcome.