Dynamic Quorum Vulnerability

Summary

The governance contract exhibits two critical vulnerabilities: the Dynamic Quorum Vulnerability and the Missing Voter Weight Decay. Both issues allow for manipulation of the governance process, undermining the integrity and fairness of voting.

1. Dynamic Quorum Vulnerability

Issue

• What it affects: The quorum calculation for proposals.

• Problem: The quorum is calculated dynamically using the current total voting power at the time of the quorum check, rather than a snapshot taken at the proposal's creation.

Impact

• If the total voting power changes during the voting period (e.g., due to token unlocks or new locks), the quorum requirement changes.

• This allows attackers to manipulate the quorum by altering the total voting power during the voting period.

Example

1. Proposal created when total voting power = 10M → quorum = 400k (4%).

2. Attacker unlocks tokens → total voting power drops to 5M.

3. Now quorum = 200k (4% of 5M).

4. Proposal passes with lower actual support.

Fix

Store the total voting power at the time of proposal creation and use it for quorum calculations.