Rage-quit

Rage-quit is a feature of some decentralised governance systems that allows a member who disagrees with a decision to leave and take their proportional share of the group's funds before that decision is carried out. It was popularised by Moloch DAO, launched in 2019 to fund Ethereum development: after a proposal passes, there is a grace period during which unhappy members can burn their shares and withdraw their slice of the treasury. The aim is to protect minority members from being outvoted into losing money, for example if a majority votes to give the treasury away. It also limits the reward for attacks on a DAO's governance, because members can exit before stolen funds move. Rage-quit is a building block in later DAO frameworks and is often compared with appraisal rights for company shareholders. Also see decentralised governance.