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If I borrow 51% of the outstanding supply, how much skin do I have in the game? What if I buy $100 million worth of ENS, while simultaneously shorting it on DeF
by yanmaani 5y ago
If I borrow 51% of the outstanding supply, how much skin do I have in the game? What if I buy $100 million worth of ENS, while simultaneously shorting it on DeFi?
What if I tell people that if they vote for my proposal, I'll raid the Community Treasury and bribe them with the money I get from that? Do they have skin in the game? And if so, which game?
- chizhik-pyzhik 5y agoIf you try to borrow 51% of the supply, you'll find the cost to borrow goes up the more you get (until you're paying 10,000%+ apr.) If you successfully pass a proposal to raid the treasury, all the $ENS tokens in there would likely crash in value as the market reacts to the news. Those who already have skin-in-the-game (by holding ENS and voting) would likely be worse off overall, so they wouldn't agree. These are great questions! DAOs are essentially a big experiment in game theory and new forms of organization. I think you'd genuinely enjoy Vitalik's discussion about DAOs: https://vitalik.ca/general/2021/03/23/legitimacy.html https://vitalik.ca/general/2021/03/23/legitimacy.html
- yanmaani 5y agoI can flash loan 0.4% of the supply from Uniswap right now. I need 1% for quorum. Is my math off?
- chizhik-pyzhik 5y agoThat certainly is spooky. Perhaps the quorum should be increased. (I imagine it would, if you tried to do something like this.) Either way, there are some barriers. Each vote is subject to a 7-day period, so other delegates have time to react; votes must first reach some level of interest through Snapshot off-chain voting before moving on to the on-chain vote.