THELOGICALINDIAN - Albeit The DAO has been alluring a lot of funds from investors during its crowdsale it appears there are some axiological issues with the abstraction which needs to be addressed According to a contempo abstraction there are assorted affidavit for concern
The DAO Technology is Not Bulletproof
One of the capital affairs credibility of The DAO has been how bodies can aloof assurance the technology back there are no individuals in ascendancy of the concept. However, as it turns out, this technology may accommodate some flaws that best bodies weren’t acquainted of. All of these vulnerabilities appear alternating from adventitious after-effects of the project’s basal mechanism.
The better blemish is how The DAO technology could be acclimated to tie up investors’ funds indefinitely. This is not article anyone should be attractive advanced to, as it opens the aperture for ransom demands or funds actuality usurped. But that is not the alone concern, as the assumption to vote on proposals may account some adventitious issues as well.
To be added precise, there is a disincentive to vote no on specific recommendations. In the continued term, this could advance to bent actuality established, which would cede the accomplished point of The DAO absolutely moot. Strategic badge holders will alone appetite to casting their “NO” vote if they are assertive the aftereffect of the angle will be “NO” as well. Doing so requires accepting intelligence of how others will vote, which will not aftereffect in reliable information.
Some investors may be attractive for means to cull their ETH funds out of the DAO. The alone way to do is by departing means from The DAO, yet that band-aid is not safe from abuse either. Assailants are, technically speaking, able to accompany individuals who are abrogation The DAO and buy tokens during the conception phase. Assuming the antagonist would access 53% of the tokens or more, he can again finer abjure any angle fabricated by the user to abjure funds. This leads to an broad allurement of user assets and is a actual absolute blackmail to this technology.
But it gets alike worse, as the cardboard additionally mentions:
“In the extraBalance Attack, an antagonist tries to alarm badge holders into agreeable from The DAO so that book bulk of TDT increases. The book bulk of TDT increases because badge holders who breach can not antithesis any extraBalance, so as added holders split, the extraBalance becomes a beyond allotment of the absolute balance, appropriately accretion the book bulk of the TDT. This advance is fabricated added astringent by the actuality that already an bulk according to the bulk of the extraBalance has been spent, a angle can be created to accelerate any bulk of eth to extraBalance and the babysitter is not able to anticipate this via the whitelist.”
All in all, it appears as if The DAO creators accept anticipation continued and adamantine about the technology they advised to use. However, some bodies accept been activity over things with a fine-toothed adjust and apparent abeyant weaknesses. The cardboard makes a acknowledgment of how these issues can be addressed and remedied, although that will crave abstruse changes to The DAO or a amusing acceding amid the curators.
Source: Google Docs
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