Someone just tried to walk out of Umbra Privacy’s treasury with roughly $1.5 million in USDC. They didn’t succeed, but the attempt itself is a fascinating stress test for one of crypto’s most experimental governance models.
The attacker accumulated enough stake on MetaDAO to submit a governance proposal that would have drained between $1.5 million and $1.57 million from Umbra Privacy’s treasury. It was the first proposal on MetaDAO to ever meet the platform’s minimum stake threshold.
How futarchy stopped a heist
MetaDAO doesn’t use the standard token-weighted voting that most DAOs rely on. Instead, it runs on a futarchy model where participants bet on whether a proposal will be good or bad for the project through decision markets. If the market prices a proposal as harmful, it gets rejected. If it prices the proposal as beneficial, it passes.
In this case, the decision market priced the malicious proposal at roughly 28% likelihood of passing. The proposal was rejected.
