NFT DAO Governance and Community 2 — Questions and Answers
Question 1: What is a 'quorum' in the context of DAO voting?
- The minimum participation threshold required for a vote to be valid (Correct answer)
- The maximum number of proposals allowed per month
- The fee paid to participate in governance
- The time limit for casting votes
Correct 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.
Question 2: In an NFT art DAO, what does 'delegated voting' allow members to do?
- Transfer their voting power to another trusted member (Correct answer)
- Create proposals on behalf of the DAO treasury
- Mint new NFTs using collective funds
- Remove members from the community
Correct 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.
Question 3: Which mechanism is commonly used to prevent wealthy members from dominating NFT DAO votes?
- Quadratic voting (Correct answer)
- Plurality voting
- Weighted average voting
- Sequential voting
Correct answer: Quadratic voting
Quadratic voting makes the cost of additional votes increase quadratically, reducing the outsized influence of large token holders.
Question 4: What is a 'multi-sig wallet' and why do NFT DAOs use them?
- A wallet requiring multiple approvals before funds move, used for security (Correct answer)
- A wallet holding multiple NFT collections simultaneously
- A wallet that automatically votes on governance proposals
- A wallet that splits revenue among all members instantly
Correct 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.
Question 5: What is a DAO 'snapshot' in NFT governance?
- A gasless off-chain voting platform used by many NFT communities (Correct answer)
- A permanent record of all NFTs minted by the DAO
- A screenshot of treasury holdings shared with members
- A smart contract audit report
Correct 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.
Question 6: When an NFT DAO votes to fund a new artist residency program, where do the funds typically come from?
- The DAO treasury, funded by primary sales or royalties (Correct answer)
- Donations from individual members only
- A government arts grant distributed on-chain
- The NFT marketplace platform's revenue share
Correct 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.
Question 7: What is the purpose of a 'time-lock' on a DAO governance proposal?
- To enforce a waiting period between vote approval and execution, giving members time to react (Correct answer)
- To limit how long a proposal can remain open for voting
- To prevent new members from voting in their first month
- To automatically renew recurring budget allocations
Correct 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.
NFT DAO Governance and Community 2
What is a 'quorum' in the context of DAO voting?