As the name already suggests, DAO (Decentralized Autonomous Organization) is a decentralized, autonomous, and organized organization. It is an automated whole organization. It stores rules and processes in code. DAOs are often stateless and distributed over millions of computers. No single government could decide to take it down. The below audit guidelines refer to the measures and practices implemented to protect smart contracts from vulnerabilities, attacks, and failures.

  1. Governance Mechanisms: DAOs are governed by their members, so it’s crucial to audit the voting mechanisms. Ensure that they are transparent and can’t be easily manipulated.
  2. Proposal Systems: Review the system for making proposals. Check who can make proposals, how they are on, and how they are executed if approved.
  3. Quorum Requirements: Check the requirements for a quorum. Ensure it’s not set too high (which could prevent any decisions from being made) or too low (which could allow a small group to control the DAO).
  4. Access Controls: DAOs often have multi-signature wallets or other access control mechanisms. Ensure these are secure and can’t be easily exploited.
  5. Token Distribution: If the DAO has a token, check how it’s distributed among members. Ensure that the distribution is fair and aligns with the DAO’s goals.
  6. Treasury Management: Review how the DAO’s treasury is managed. Check how funds are spent and ensure checks and balances are in place.
  7. Dispute Resolution: Check how the DAO resolves disputes among members. This is often done through a voting process, so ensure this is fair and transparent.
  8. Upgradeability: DAOs often need to upgrade their smart contracts. Check how this process is managed and ensure it’s secure.
  9. Interactions with Other Contracts: DAOs often interact with other smart contracts (e.g., DeFi protocols). Ensure these interactions are secure.
  10. Emergency Shutdown: Check if there’s a mechanism for an emergency shutdown in case of a serious issue. This should be a last resort and only accessible to trusted members.
  11. Transparency: Ensure that all actions taken by the DAO are transparent and can be audited by members.
  12. Member Rights and Responsibilities: Review the rights and responsibilities of DAO members. Ensure they are clearly defined and protected.

E COM SECURITY SOLUTIONS’ – BLOCKCHAIN SECURITY

The E Com Security Solutions Cyber Range solution creates immersive simulations to guide your team through realistic breach scenarios, helping ensure you can respond and recover from enterprise-level cyber security incidents, manage vulnerabilities, and build a stronger security culture in your organization. E Com Security Solutions blockchain testing solution will help enterprises to securely create, implement, and use blockchain technology and the connected infrastructure. The solution includes a manual review of chain code, security controls, and processes. These processes include access controls and finding a probable adversarial path to compromise and move laterally within a blockchain network.