# Insider abuse

`kaal:entity:insider-abuse`

**Status.** derived

This node is assembled mechanically from the 3 claims that carry the concept tag `insider-abuse`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

3 claims across 1 works, 2022 to 2022.

**2022**

- [4067783-008](https://wulfkaal.github.io/claims/4067783-008) [empirical/evidenced] *(failure mode)* -- A DAO token sale can be drained at the moment of closing: in the Anubis DAO sale 13597 ETH was removed from the token sale pool and sent to another address as the sale was about to close, and because the launch platform had not been compromised the loss was attributed to an inside rug pull.
  > As the sale was about to close, 13597 ETH was removed from the token sale pool and sent to another address. Allegations of a rug pull ensued because the launch platform Copper had not been compromised.
  Wulf A. Kaal, DAO Fallacies (2022). SSRN: https://ssrn.com/abstract=4067783
- [4067783-009](https://wulfkaal.github.io/claims/4067783-009) [mechanism/argued] *(failure mode)* -- Most DAOs that suffer unethical behavior and rug pulls are abused by insiders, and this is possible because insiders are not properly governed and hold too much control over the DAO; true decentralized community governance removes insider and council control over keys and code.
  > Most DAOs that fall victim to unethical behavior and rug pulls are subject to abuses from insiders. Typically these insider abuses are possible because the insiders are not governed properly and have too much control over the DAO.
  Wulf A. Kaal, DAO Fallacies (2022). SSRN: https://ssrn.com/abstract=4067783
- [4067783-010](https://wulfkaal.github.io/claims/4067783-010) [empirical/evidenced] *(failure mode)* -- 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.
  > 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.
  Wulf A. Kaal, DAO Fallacies (2022). SSRN: https://ssrn.com/abstract=4067783

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/insider-abuse.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.