A new revelation about the DAO has come in from the publication Hacking, Distributed written by researchers and cryptographers Dino Mark, Vlad Zamfir, and Emin Gün Sirer. The three have written a 13-page paper describing potential attacks to the DAO ecosystem called “A Call for a Temporary Moratorium on The DAO.” So far the DAO has raised 12.07 million Ether equivalent to $132.32 million USD at the time of writing. The DAO pre-sale is officially closed. The project has so far been the largest crowdfund to date and holds roughly 14% of the Ether in existence. The researchers from Hacking, Distributed encourage the community to temporarily prohibit activity of the DAO until the updates can be made.

Many Eyes Are Watching The DAO. Can It Succeed With These Transgressions?

The paper describes seven identified attacks on the DAO that can cause “honest investors” quite a bit of troublesome times and could “hijack” investments. The report states, “these concerns motivate a moratorium on funding proposals to prevent losses due to poor mechanism design.” Researchers give a background explanation of the DAO and how voting processes work within the Ethereum decentralized autonomous organization. Following this, the team then goes into the seven attacks that would make the DAO fail to operate the way it supposed to. This is the very basics of each attack as the whole paper can be read here. Hacking, Distributed latest revelation explains:

“We now describe why the current implementation of The DAO fails to uphold this principle.”

Full text: http://bitcoinist.net/the-seven-sins-dao/