Time Weighted Average Balances
Time weighted average balances are a security mechanism designed to prevent governance manipulation by requiring users to hold tokens for a specific period before their votes count. Instead of looking at a snapshot of current token holdings, the protocol calculates the average balance over a set duration.
This makes it impossible for an attacker to use a flash loan to gain sudden, massive voting power because the borrowed tokens have not been held for the required time. By enforcing a holding period, the protocol ensures that participants have a vested interest in the long-term success of the project.
This mechanism effectively neutralizes short-term governance attacks while still allowing for legitimate voting activity. It is a critical component in building robust, resistant governance structures that prioritize long-term stakeholder alignment.