kaal:claim:2998033-007

The DAO failed because of fundamental flaws in its own code, which allowed hackers to move one third of its funds to a subsidiary account, showing that governance built entirely on smart contracts inherits the defects of its code.

Alas, things went terribly wrong with the DAO. Fundamental flaws in the DAO code enabled hackers to transfer one third of the total funds to a subsidiary account.

Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017), II.4. Limitations, p. 13
https://ssrn.com/abstract=2998033 · source PDF

Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033

• applies to organizations whose governance and asset control rest entirely on open source smart contract code

failuresupport: evidencedfailure: dao-code-exploitfamily: smart-contract-bug-and-exploitdaogovernance-designsmart-contracts

• extends kaal:claim:2922176-035 Fundamental flaws in the DAO's code allowed hackers to move one third of contributed funds to a subsidiary acc...
• extends kaal:claim:2939127-030 Fundamental flaws in the DAO's code let hackers move one third of its total funds to a subsidiary account, and...
• extended_by kaal:claim:3227933-035 Fundamental flaws in the DAO's code allowed hackers to transfer one third of the total contributed funds to a ...
• restated_by kaal:claim:3373393-030 Fundamental flaws in the DAO code enabled hackers to transfer one third of total funds to a subsidiary account...
• restated_by kaal:claim:3071378-012 The DAO failed because its code had not yet been perfected: hackers took a third of the DAO tokens and transfe...

The quote above is an exact substring of the source PDF, whose sha256 is aafb1be3c25cd33da477d759df9ca2f856f0a8fe133d6396da2e75d0af573dbd. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/0c20928a8bb5848d...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/2998033-007.md | sha256sum