1. 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
2. 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
3. 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
4. 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
5. 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
6. 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
7. 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
8. 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
9. 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
10. 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
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 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
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 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
15. 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