# kaal:claim:4067783-010

**Claim.** Insider knowledge of contract internals is itself an attack surface: at Snowdog DAO an insider who knew a challenge key embedded in the DAO contract backran the anticipated buyback and sold tokens ahead of it.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- Snowdog DAO on the Avalanche protocol
- insider holding a contract challenge key

**Source quote.**

> For example, Snowdog DAO suffered an alleged rug-pull when an insider who knew a "challenge key" (a part of the DAOs contract), backran the anticipated buyback and began selling tokens.

**From.** Wulf A. Kaal, *DAO Fallacies* (2022), II.2.a) Insider Abuses, page 6

**Cite as.** Wulf A. Kaal, DAO Fallacies (2022). SSRN: https://ssrn.com/abstract=4067783

**Verify.** sha256 of source PDF `48f1e307cdbbe28c7843f7744d0ba8cf01662f257a53f2066a7a6c7e03a5acec` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202022%20-%20DAO%20Fallacies.pdf

**Failure mode.** Insider backrunning of a scheduled buyback  (family: fraud-and-misconduct)

**Topics.** dao, smart-contracts

**Keywords.** snowdog-dao, insider-abuse, backrunning, smart-contract, rug-pull

**Related claims.**

- generalizes: https://wulfkaal.github.io/claims/4529715-028

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.