DAO Attack - The Aragon Story
How do you avoid having your treasury raided?
Origami talked with Aragon about the attack on the use of its treasury funds. Listen to the conversation or read some of their advice below.
Ben Huh, Origami’s founder recommended blocking “Pigeons.” These opportunists token buyers fly into a DAO, take what they want, poop on the DAO, and fly off. Don’t give token-holders instant power over the treasury. Create a governance council and enable token holders to vote on elected representatives.
Luis Cuende, Aragon’s cofounder, suggested token sales could be restricted to disempower opportunistic short-term holders. The lockup could be based on time or based on the DAO achieving a north star metric.
Luis Cuende, also suggested prioritizing profits. One reason a DAO’s token price could be low is that the market doesn’t believe the DAO could grow the treasury. Profits should raise token prices.
Anthony Leutenegger, Aragon’s Head of Growth, advocated for a measured DAO creation, which is Aragon DAO’s approach. Many mistakenly believed raiders were getting access to Aragon’s $200 million treasury. But funding was intentionally slow. It only received $300k.
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