Core Contracts

Summary

In the RAACToken.sol contract the burn function will skip the fee if the amount to be burned is small, leading to potential inconsistencies in the application of the burn tax.

Vulnerability Details

The vulnerability arises from the burn function, which calculates the taxAmount based on the burnTaxRate. If the amount to be burned is small, the calculated taxAmount may be zero due to rounding. In such cases, the function will skip the fee transfer to the feeCollector, resulting in the burn tax not being applied consistently.

Impact

The real impact of this vulnerability is that small burn transactions will not be taxed, leading to potential inconsistencies in the application of the burn tax. While the financial impact may be minimal for individual transactions, it can accumulate over time, resulting in a loss of revenue for the protocol. Additionally, it undermines the fairness and integrity of the tokenomics, as users with small burn amounts effectively avoid the burn tax.

Tools Used

Manual Review

Recommendations

To mitigate this vulnerability, ensure that the burn tax is applied consistently, even for small amounts. One approach is to set a minimum tax amount to ensure that the fee is always applied.