Project

Summary

While the protocol provides membership and profit-sharing mechanisms, it critically lacks a governance system that would allow members to participate in decision-making. A core feature of any DAO is the ability for token holders to propose and vote on changes, yet the current implementation offers no such functionality, effectively centralizing all control with the administrators.

Vulnerability Details

1. The protocol only implements basic membership features through ERC1155 tokens

2. No governance mechanisms

3. Token holders lack voting capabilities despite having financial stake

Impact

1. All decisions require administrator action

2. Members cannot influence protocol development

Tools Used

Manual Review

Recommendations

1. Design and implement a comprehensive proposal system

2. Add voting weight calculation based on token tiers

3. Implement proposal execution timelock for security