Decentralized Autonomous Organizations are often presented as simple governance systems: token holders create proposals, vote, and execute decisions on-chain. In practice, building a production-grade DAO is far more difficult.
A DAO is not only a smart contract. It is a distributed coordination system that combines governance logic, treasury security, token economics, identity, off-chain infrastructure, and human decision-making. A failure in any one of these layers can compromise the entire organization.
Below are some of the most important technical problems DAO developers must solve.
1. Governance Attacks Through Borrowed Voting Power
Many DAOs calculate voting power based on the number of governance tokens held at a specific moment. This creates a serious attack surface when tokens can be borrowed through lending protocols or flash loans.
