kaal:claim:3782217-006

A DAO that relies on a centralized oracle will eventually be exploited, because the people controlling the oracle will become aware of their power over automated contract triggers and, given the competitive nature of capitalism, are right to take advantage of it.

Source quote, verbatim

Eventually, the people who have the relevant power in the centralized oracle will become aware of the power they have over the DAO. Eventually there will be an opportunity to exploit that information.

From

Craig Calcaterra, Wulf A. Kaal, The Importance of History In Decentralization (2021), Oracles, p. 3
https://ssrn.com/abstract=3782217 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, The Importance of History In Decentralization (2021). SSRN: https://ssrn.com/abstract=3782217

Holds when

DAO automated by smart contracts on oracle data
sufficient value at stake

Classification

mechanismsupport: arguedfailure: centralized-oracle-capturefamily: oracle-and-input-corruptionsmart-contractseconomicsrisk-and-incentives

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