1. In DAO governance, what is the typical participation rate?
A Over 90% of token holders voteB Below 10% — voter apathy is one of the biggest challengesC Exactly 50% by designD 100% due to mandatory voting
2. Which L2 was built by Coinbase using the OP Stack?
A ArbitrumB zkSyncC Base — aimed at bringing the next billion users to Web3 with easy onboardingD StarkNet
3. If Market Cap is $100M and FDV is $1B, what does this indicate?
A The token is undervalued 10xB Only 10% of supply is circulating — 90% more will enter the market, potentially creating selling pressureC The project has $900M in treasuryD The token has a burn mechanism
4. How does a cross-chain bridge technically work?
A It copies tokens between chainsB You lock assets in a smart contract on the source chain; the bridge mints equivalent wrapped tokens on the destination chain. Bridging back burns wrapped tokens and unlocks originals.C It transfers the blockchain itselfD It creates a new token on each chain independently
5. What is EIP-1559?
A A protocol increasing max ETH supplyB A burn mechanism destroying a portion of gas fees — when burn rate exceeds issuance, ETH becomes deflationary ("ultrasound money")C A governance proposal for voting rightsD A Layer 2 scaling solution
6. What is a red flag in token distribution?
A Community allocation above 40%B Team holds more than 30% of supply with no vesting schedule, allowing immediate dumpingC Having a treasury reserveD Multiple token unlock events spread over 4 years
7. What is the "Scalability Trilemma"?
A A blockchain can only support three token typesB A blockchain can optimize for at most two of: security, decentralization, and scalability — L2s attempt to break thisC Choosing between three programming languagesD Choosing between public, private, or consortium
8. What is the OP Stack?
A A JavaScript framework for Web3B Optimism's open-source framework that lets anyone launch their own L2, spawning the "Superchain" visionC A token staking protocolD A consensus mechanism
9. What is the difference between a utility token and a governance token?
A They are the same thingB Utility tokens pay for services within a protocol (ETH for gas); governance tokens give holders voting rights on protocol decisions (UNI, AAVE)C Governance tokens are always more valuableD Utility tokens can only be used for staking
10. How do DAI and USDC maintain their dollar peg differently?
A DAI is backed by gold; USDC by cryptoB USDC is backed 1:1 by USD reserves; DAI maintains its peg algorithmically through overcollateralized crypto loansC Both use identical mechanismsD USDC is governance; DAI is utility
11. Why are cross-chain bridges high-risk?
A They are slow and expensiveB They hold massive locked funds in smart contracts, making them prime hacker targets — over $2.5B stolen historicallyC They are incompatible with walletsD They require KYC
12. What is the key difference between Optimistic and ZK Rollups?
A Optimistic are decentralized; ZK require a central serverB Optimistic assume validity with a 7-day fraud proof challenge; ZK prove validity cryptographically upfront with no challenge periodC ZK can only do simple transfersD Optimistic are newer
13. What is "quadratic voting" designed to address?
A Speeding up transaction processingB The plutocracy risk where wealthy holders dominate votes — quadratic voting increases the cost of additional votes quadraticallyC Reducing gas fees on L2sD Preventing smart contract bugs
14. What is "vote buying" in DAO governance?
A DAOs charging fees to voteB Governance tokens can be temporarily borrowed via DeFi lending to swing a vote, then returned — undermining democratic governanceC Paying validators to include transactionsD Purchasing NFTs for forum access
15. What is a "vesting schedule" in tokenomics?
A A schedule for network upgradesB A time-locked release plan (e.g., 1-year cliff then 3-year linear unlock) that prevents insiders from dumping tokens immediatelyC A voting schedule for governance proposalsD A schedule for staking rewards distribution