Risks

When a user creates a DAO on the Toucans platform, the fungible token smart contract that is created is stored in the creator's account storage.

Although we believe this is a huge advantage because it allows users to have full control over their contract and gives DAOs independence from our platform, it also means that they can directly manipulate the token contract.

The following are the main risks related to this.

Tokens can be minted even if this feature is turned off

The project owner can mint tokens even if the minting feature is turned off by updating their contract. This can potentially cause inflation and impact the value of tokens.

The minting being turned off/on should solely be used as a communication tool from the owner to their community that they do not intend to ever mint.

Total supply updates

Project administrators can update the total supply at their discretion, which may affect funding overflow calculations and impact the value of tokens.

This can be done simply by updating the total supply number, or by minting tokens as described above.

Max supply can be edited

If project administrators configure a max supply, they can change the it to be a different number, which may affect how much they can mint and potentially impact the value of tokens.

If there is a max supply present, it should solely be used as a communication tool from the owner to their community that they do not intend to ever mint more than a certain amount.