Assessment reports>Circuit DAO>Low findings>Veto from proposal coin has limited effect
Category: Business Logic

Veto from proposal coin has limited effect

Low Severity
Low Impact
High Likelihood

Description

One consideration by the authors of the protocol is that CRT votes towards proposals may be tied up or not immediately available to veto a bill with lower support. So governance coins are designed such that proposals can still veto other bills. But this mitigation might not quite interact well with how the protocol is envisioned to work.

The governance system is not designed with a voting mechanism. Rather, all proposals are a single governance coin and must be vetoed by a single governance coin. In order for CRT holders to actually collectively vote or collaborate on proposals or vetos, they must themselves design an inner puzzle for the governance coin that aggregates their tokens.

So, while funds in proposals can be used to veto other proposals, they cannot be aggregated with other funds to veto a proposal. Similarly, there is not an obvious way for funds in an aggregated proposal to be split towards vetoing other proposals, in the case where voters disagree.

Impact

Unwelcome proposals can cause disruption to in-progress proposals, if they need to be ended in order to free funds.

Recommendations

Voltage Technologies Ltd. may consider other designs (like an explicit voting system) to prevent this issue.

Remediation

Voltage Technologies Ltd. acknowledged this issue and added a reference voting implementation in commit .

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