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zero-knowledge-privacy-identity-and-compliance
Blog

Why Your DAO's Snapshot Votes Are a Security Vulnerability

Off-chain signaling platforms like Snapshot create a public map of member influence and preferences, enabling sophisticated phishing, extortion, and whale-targeted governance attacks. This post deconstructs the vulnerability and explores zero-knowledge proofs as the necessary privacy layer.

introduction
THE VULNERABILITY

Introduction

Snapshot's off-chain voting creates a critical attack surface that undermines on-chain governance execution.

Off-chain signaling is not execution. Snapshot votes are signed messages that lack on-chain enforcement, creating a dangerous execution gap. This gap allows malicious actors to subvert voter intent between the signal and the final on-chain transaction.

The multisig is the real governor. Your DAO's security is defined by the multisig signers or Safe{Wallet} that executes the proposal, not the Snapshot vote. Attackers target this single point of failure, not the decentralized vote tally.

Vote manipulation is cheap. An attacker needs only to compromise a single multisig key or exploit a timelock bypass, not alter millions of votes. This makes governance attacks on Compound or Aave forks a high-ROI exploit.

Evidence: The 2022 Nomad Bridge hack stemmed from a flawed governance upgrade proposal execution, demonstrating how a trusted execution path invalidates decentralized consensus.

key-insights
THE GOVERNANCE ILLUSION

Executive Summary

Snapshot's off-chain convenience has created a systemic security blind spot, exposing billions in DAO treasuries to trivial attacks.

01

The Sybil Illusion: Off-Chain Votes Are Not Governance

Snapshot votes are signatures, not transactions. They create a false sense of consensus without on-chain finality or execution. This decouples signaling from action, enabling vote manipulation and execution griefing.

  • No Cost to Spam: An attacker can generate infinite wallets to vote, as there's no gas fee for signing.
  • Execution Lag: A malicious proposal can pass a vote but be executed with different, malicious calldata.
0 GWEI
Cost to Vote
100%
Execution Risk
02

The Oracle Problem: Centralized Relayers Control Finality

A Snapshot vote result is just data. Its on-chain execution depends on a trusted relayer (e.g., a multisig) to bridge the result. This reintroduces a single point of failure and censorship that DAOs were designed to eliminate.

  • Relayer Capture: The entity controlling the relayer key can censor or alter the execution.
  • Infrastructure Risk: Relayer downtime or compromise halts all governance execution.
1-of-N
Failure Point
$10B+
TVL at Risk
03

The Solution: On-Chain Execution Primitives (SafeSnap, Zodiac)

Frameworks like SafeSnap (by Gnosis Guild) and Zodiac reintroduce cryptographic guarantees. They use an on-chain reality.eth oracle to attest to the Snapshot result before allowing execution via a delay-module guarded Safe.

  • Timelock & Challenge Period: Creates a window to detect and challenge malicious execution.
  • Cryptographic Proof: The execution must match the hashed proposal details voted on.
~48h
Safety Delay
>200 DAOs
Using SafeSnap
04

The Endgame: Fully On-Chain Governance (Compound, Uniswap)

Protocols like Compound Governor Bravo and Uniswap run votes entirely on-chain. While more expensive, they provide atomic proposal-to-execution with no trusted bridge. This is the gold standard for high-value, adversarial environments.

  • Atomic Execution: Vote passage automatically triggers the state change.
  • Cost as Sybil Resistance: The gas cost of proposal and voting acts as a economic barrier.
$50k+
Proposal Cost
0
Trusted Parties
thesis-statement
THE ATTACK VECTOR

The Core Vulnerability: Signaling is a Liability

Snapshot votes create a public, on-chain record of governance intent that is exploited by MEV bots and malicious actors.

Signaling creates a target. Public votes on Snapshot or Tally broadcast a DAO's future actions before execution. This is a free option for arbitrageurs and attackers.

The MEV extraction is systematic. Bots from Flashbots or EigenLayer operators front-run treasury approvals or parameter changes, extracting value that belongs to token holders.

Compare intent vs. execution. Platforms like UniswapX and CowSwap hide user intent to prevent exploitation. DAO signaling does the opposite, telegraphing moves.

Evidence: The Fantom Foundation's $550k loss to a front-running bot after a governance vote was a canonical exploit of this exact vulnerability.

risk-analysis
DAO GOVERNANCE VULNERABILITIES

The Attack Vectors: From Phishing to Extortion

Snapshot's off-chain convenience creates a target-rich environment for attackers, turning governance into a soft underbelly for protocol control.

01

The Phishing Vector: Compromising the Signer

Attackers don't need to hack the blockchain; they just need one delegate's private key. A single malicious signature can pass a malicious proposal.\n- Single Point of Failure: A phished delegate with >50% voting power can pass any proposal.\n- Irreversible On-Chain Execution: The malicious payload (e.g., drain treasury) executes automatically once the vote passes.

>50%
Power to Pass
1
Key to Compromise
02

The Extortion Vector: Vote-Buying & Bribery

Off-chain votes are not private, enabling real-time bribery markets. Large token holders can auction their voting power to the highest bidder.\n- Opaque Markets: Platforms like LlamaPay or custom smart contracts facilitate payment-for-votes.\n- Undermines Consensus: Decision-making shifts from ideology to pure mercenary capital, as seen in early Compound and Uniswap governance battles.

Real-Time
Bribery Feasibility
Mercenary
Capital Incentive
03

The Sybil/Delegation Attack: Fake Consensus

Attackers create thousands of Sybil addresses, delegate votes to a single wallet, and simulate grassroots support. Snapshot's lack of identity proof enables this.\n- Low-Cost Attack: Sybil creation cost is minimal versus the value of controlling a $100M+ Treasury.\n- Erodes Legitimacy: Creates a false perception of community support, as observed in attacks on Frax Finance and Index Coop governance.

$100M+
Treasury at Risk
Low-Cost
Sybil Creation
04

The Solution: On-Chain Execution & Privacy

Mitigation requires moving critical votes on-chain with execution privacy.\n- Time-Locked Execution: Proposals pass on Snapshot, but have a 48-72 hour delay before on-chain execution, allowing for community veto.\n- Privacy-Preserving Voting: Use zk-SNARKs (like Aztec, Semaphore) to hide vote direction until the tally, neutralizing bribery.

48-72h
Safety Delay
zk-SNARKs
Privacy Tech
05

The Solution: Progressive Decentralization & Multisigs

Treat Snapshot as a signaling layer, not an execution layer. Use a multisig council as a circuit breaker for high-stakes decisions.\n- Multisig Veto Power: A 5/9 council of respected community members can block malicious executed proposals.\n- Gradual Handoff: As with Lido or Aave, core teams retain veto power early on, sunsetting it as sybil-resistant identity (e.g., Proof of Personhood) matures.

5/9
Multisig Council
Circuit Breaker
Core Function
06

The Solution: Reputation-Based Voting Power

Move beyond one-token-one-vote. Integrate systems like Proof of Personhood (Worldcoin, BrightID) or Conviction Voting to weight votes by identity or continuous stake.\n- Sybil Resistance: 1 person = 1 vote models drastically increase attack cost.\n- Alignment Over Capital: As piloted by Gitcoin Grants, this rewards long-term community engagement over whale dominance.

1 Person = 1 Vote
Sybil Resistance
Conviction
Voting Model
DAO GOVERNANCE ATTACK VECTORS

The Cost of Exposure: Real-World Incident Map

A comparative analysis of security vulnerabilities in DAO governance, focusing on the risks of on-chain vs. off-chain voting mechanisms.

Vulnerability VectorSnapshot (Off-Chain)On-Chain Execution (e.g., Compound, Aave)Fully On-Chain (e.g., DAOHaus, Moloch)

Vote Sniping / MEV Front-Running

❌ Not Applicable

βœ… High Risk

βœ… High Risk

Vote Delegation Exploit (e.g., OZ Governor)

❌ Not Applicable

βœ… Yes (e.g., $80M Optimism incident)

βœ… Yes

Proposal Logic Bug

❌ Not Applicable

βœ… Critical (Direct fund loss)

βœ… Critical (Direct fund loss)

Result Finalization Delay

1-7 days (Social Consensus)

< 1 block (e.g., 12 secs on Ethereum)

< 1 block

Gas Cost per Vote (Ethereum Mainnet)

$0

$50 - $500+

$50 - $500+

Sybil Attack Surface

βœ… High (Cost = API key)

βœ… Medium (Cost = Gas)

βœ… Medium (Cost = Gas)

Treasury Exposure During Voting

0%

100% (Execution bundled)

100%

Required Mitigation (Post-Incident)

Social Reversal / Multisig Override

Timelock Delay (e.g., 2-7 days)

Timelock Delay or Fork

deep-dive
THE VULNERABILITY

The Zero-Knowledge Solution: Verifying Without Exposing

Public on-chain voting leaks voter intent, creating a front-running and coercion attack surface that ZK proofs eliminate.

Snapshot votes are public intelligence. Every proposal and wallet's vote is transparent, creating a perfect data set for sybil attackers and governance extractors. This transparency is the vulnerability, not a feature.

ZK proofs enable private voting. A voter submits a zero-knowledge proof that their vote is valid without revealing their choice or identity. This breaks the information asymmetry that attackers exploit in systems like Compound or Aave governance.

Compare Snapshot to Aztec. Snapshot's privacy relies on off-chain obfuscation, which fails against chain analysis. Aztec's zk.money or Semaphore use on-chain ZK proofs, providing cryptographic guarantees that the vote is counted correctly while the content stays hidden.

Evidence: The 2022 Optimism Governance attack involved analyzing delegate patterns to manipulate outcomes. A ZK system like MACI (Minimal Anti-Collusion Infrastructure) would have made this reconnaissance impossible.

FREQUENTLY ASKED QUESTIONS

Objections & Implementation FAQs

Common questions about the security vulnerabilities of relying on Snapshot votes for on-chain execution in DAOs.

Snapshot voting is safe for signaling but unsafe for directly controlling funds or smart contracts. The off-chain nature of Snapshot votes means they are not binding and can be manipulated or ignored by a malicious proposer or executor. This creates a critical security gap between voter intent and on-chain execution.

takeaways
DAO SECURITY

Actionable Takeaways for Protocol Teams

Snapshot's off-chain, signature-based voting is a systemic risk for governance assets and protocol control.

01

The Sybil Attack Is Already Here

Snapshot votes are weighted by token holdings, creating a direct incentive to borrow or rent voting power. This leads to governance attacks and protocol capture.

  • Attack Vector: Flash loans from Aave or Compound can temporarily control millions in voting power.
  • Real Cost: A governance attack on a $100M+ TVL protocol can be executed for mere thousands in gas fees.
$100M+
TVL at Risk
~$5k
Attack Cost
02

Your Vote Is Not On-Chain

Snapshot signatures are mere promises; execution requires a separate, vulnerable multisig transaction. This creates a critical time lag and centralization risk.

  • Execution Gap: Votes pass, but a malicious or compromised multisig signer can block or alter execution.
  • Solution Path: Migrate to fully on-chain voting systems like OpenZeppelin Governor or Compound's Bravo, ensuring vote outcome equals state change.
24-72hrs
Execution Lag
1 of N
Single Point of Failure
03

Delegate Voting Is a Centralization Trap

Delegation concentrates power, creating whale-dominated governance and reducing voter participation. This defeats the purpose of a decentralized autonomous organization.

  • Metric: Top 5 delegates often control >40% of voting power in major DAOs like Uniswap or Arbitrum.
  • Action: Implement vote escrow models (like Curve's veCRV) or holographic consensus to incentivize long-term, informed participation over passive delegation.
>40%
Power Concentration
<5%
Voter Turnout
04

Integrate a Security Stack

Treat governance like a core protocol component. Layer specialized security tools directly into your voting process to mitigate risks.

  • For Sybil Resistance: Use BrightID or Gitcoin Passport for proof-of-personhood layers.
  • For Execution: Use Safe{Wallet} with Zodiac modules for automated, conditional execution of passed proposals.
  • For Analysis: Monitor delegate concentration and voting patterns with Tally or Boardroom.
3-Layer
Defense Depth
~100%
Execution Guarantee
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NDA Protected
24h Response
Directly to Engineering Team
10+
Protocols Shipped
$20M+
TVL Overall
NDA Protected Directly to Engineering Team