Summary

While the Sparkn team has designated the organizer as a trusted entity and plans to institute a reputation system to solidify this trust, potential vulnerabilities remain. Specifically, if the organizer also plays the role of a supporter or sponsor, there's an avenue for them to subtly manipulate contest outcomes.

Vulnerability Details

An organizer, especially one with double/triple roles as a supporter and/or sponsor, wields significant power over the contest. With a vested interest in the outcome and possible access to funds or decisions determining winners, this entity can manipulate results, whether by favoring certain participants or altering the distribution of rewards.

1. Conflict of Interest: An organizer acting simultaneously as a supporter or sponsor is privy to the interests of both parties. This can result in a conflict of interest, where the organizer might prioritize their interests over the fairness of the contest.

2. Manipulation of Votes or Judgments: If voting mechanisms or judging criteria are at the organizer's discretion, they can exploit these processes to favor certain participants, especially if the organizer has financial ties to them.

3. Control over Fund Distribution: As a sponsor, the organizer directly controls the funds meant for rewards. They could delay, reduce, or otherwise manipulate the distribution to suit their interests.

Proof of Concept:

1. Scenario:

   • Owner sets up the contest

   • Organizer 'A' also acts as a major sponsor, contributing a significant portion of the prize money.

   • They also support participant 'B', having a vested interest in their success.

2. Manipulation:

   • When the results are to be announced, 'A' uses their discretion to award points or favor 'B', citing reasons that fit within the broad criteria they've set.

   • Even if other participants raise concerns, 'A' can defend their decision using the loose rules they've established.

3. Result:

   • Participant 'B' wins, possibly undeservingly.

Impact

1. Loss of Trust: The reputation of the contest platform can suffer a major setback. Participants and sponsors might lose trust, leading to reduced participation and sponsorship in the future.

2. Financial Impact: Honest participants could miss out on rewards they genuinely deserve, leading to potential financial losses.

3. Reputational Damage for Winners: Winners, even if they weren't complicit in the manipulation, might face scrutiny and reputational damage due to the perceived unfairness.

Tools Used

Manual review

Recommendations

1. It's crucial to ensure the roles of organizer, supporter, and sponsor are distinct, with different entities handling each to prevent any conflicts of interest.

2. Introduce a neutral third-party entity to oversee significant contests, ensuring fairness and adherence to set rules.