Governance Token Snapshots

Governance Token Snapshots are a mechanism where a protocol records the balances of all token holders at a specific block height to determine voting eligibility. This method effectively neutralizes the threat of flash loan attacks because the voting power is fixed based on historical holdings rather than the current, potentially manipulated balance.

By preventing the temporary acquisition of voting power, snapshots ensure that only long-term, committed stakeholders influence the protocol's future. This approach encourages genuine investment and discourages mercenary capital that might seek to disrupt the protocol for short-term gain.

Snapshots are a fundamental tool in decentralized governance, providing a stable foundation for counting votes and validating the legitimacy of community decisions.