According to Techub News, DeFi researcher @DefiIgnas tweeted that the user hitmonlee.eth spent approximately $10,000 worth of 5 Ether on Lobby Finance to purchase 19.5 million ARB (worth about $6.5 million) votes, holding more votes than major DAO representatives such as L2Beat and Wintermute. hitmonlee.eth used all the votes to support crypto developer Joseph Schiarizzi to become a member of the Arbitrum Oversight and Transparency Committee.
Ignas pointed out that this is a significant issue because attackers can exploit DAO governance at a lower cost than ever before. In a recent case, the attacker spent only 5 Ether, while the beneficiary Schiarizzi, as a committee member, could earn about 66 Ether in a year. Lobby Finance’s mission to shake up the DAO governance model is certainly commendable, but similar platforms with weaker protections could emerge, which may foster manipulative behaviors.
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