papers/lux-governance-dao/sections/09-security-and-attack-prevention.tex

\section{Security and Attack Prevention}


\subsection{Governance Attack Vectors}

\textbf{Common Attacks}:
\begin{enumerate}
\item \textbf{51\% Attack}: Attacker acquires majority voting power
\item \textbf{Sybil Attack}: Creating multiple fake identities to inflate voting power
\item \textbf{Bribery Attack}: Paying voters to vote particular way
\item \textbf{Flash Loan Attack}: Borrowing tokens temporarily to vote
\item \textbf{Front-Running}: Observing vote outcomes and acting before execution
\end{enumerate}

\subsection{Mitigation Strategies}

\textbf{1. Time-Locked Staking}:
\begin{itemize}
\item Tokens must be staked for $\geq$ 7 days before gaining voting power
\item Prevents flash loan attacks
\item Snapshot voting power at proposal creation block
\end{itemize}

\textbf{2. Quadratic Voting}:
\begin{itemize}
\item Cost of $n$ votes: $n^2$ tokens
\item Reduces whale dominance
\item Makes vote buying less economically viable
\end{itemize}

\textbf{3. Validator Verification}:
\begin{itemize}
\item Validators must prove stake and identity
\item Enhanced security through validator consensus
\item Slashing for malicious voting behavior
\end{itemize}

\textbf{4. Proposal Deposits}:
\begin{itemize}
\item Proposers stake 100-1000 LUX (refunded if approved)
\item Prevents spam proposals
\item Slashed if proposal determined malicious
\end{itemize}

\textbf{5. Emergency Pause}:
\begin{itemize}
\item 5-of-7 multisig can pause governance in emergency
\item Multisig controlled by trusted community members
\item Transparent 48-hour timelock on pause activation
\end{itemize}

\subsection{Post-Quantum Security}

Governance signatures use Quasar dual-certificate system:

\begin{lstlisting}[language=Solidity,caption=Quantum-secure governance signature]
struct GovernanceSignature {
    // Classical security (BLS aggregate)
    bytes48 blsSignature;

    // Quantum security (Pulsar lattice-based)
    bytes coronaSignature;  // ~2.5KB

    // Validator index in committee
    uint16 validatorIndex;

    // Proposal being signed
    uint256 proposalId;
}

function verifyGovernanceVote(
    GovernanceSignature calldata sig
) external view returns (bool) {
    // Both signatures must verify
    bool classicalValid = verifyBLS(sig);
    bool quantumValid = verifyCorona(sig);

    return classicalValid && quantumValid;
}
\end{lstlisting}