Curve Finance Founder Michael Egorov Addresses Concerns About Potential Governance Attacks

Curve Finance founder Michael Egorov has addressed concerns about potential governance attacks, following a controversial Compound Finance hack.

DeFi protocols are exploring various approaches to address the challenge of balancing decentralized decision-making with protection against potential manipulation. Some protocols, like Compound, utilize a simpler governance system where voting power is directly proportional to token holdings. Others, such as Curve Finance, have implemented more complex models to enhance the robustness of their governance processes.

In the case of Curve Finance, the governance model is centered around ve-tokenomics. This mechanism requires users to lock their tokens for an extended period of four years to participate in governance decisions. This long-term commitment acts as a deterrent against rapid token accumulation for malicious purposes.

Moreover, the threshold for unilaterally reaching quorum on Curve is currently around 200 million CRV tokens. This substantial amount would be challenging to acquire without drawing attention, especially considering the active nature of Curve's governance, which often sees multiple proposals under consideration simultaneously.

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