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Only 1 Owner of Multi-Signed Contract? Worldcoin May Involve Centralized Risks

Validated Project

We analyzed Worldcoin's token $WLD smart contract 0x163f8c2467924be0ae7b5347228cabf260318753 and found some security concerns. Here are risks that you should keep alert.

Centralized Risks

  • The mintOnce Function

The contract implements a centralized minting mechanism mintOnce, allowing the owner to mint tokens to multiple addresses in one transaction. This one-time function has already been called by the current owner. The current owner is a 1/1 multisig wallet contract 0x59a0f98345f54bAB245A043488ECE7FCecD7B596, with only one owner eth:0xc534a745bFfaF9466Ed7B47fA23B0177b99A3e77. This means only one signature is needed to represent the owner to perform privileged operations.

  • The setMinter Function

In addition, the contract also implements the setMinter function, allowing the owner to set a minter address. Currently the minter is zero address.

  • The mintInflation Function

If the owner sets a non-zero minter, the minter can arbitrarily call mintInflation to mint unlimited tokens to any address.

Token Distribution

Statistics show the first 6 addresses already hold 94.5% of the total supply. This indicates a highly centralized token distribution.

In summary, the token contract has the following security risks:

  1. The owner currently has only one signer, which reduces security control over the owner account.
  2. There is a risk of unlimited token minting after a minter is set.
  3. The token distribution is overly centralized with the top 6 addresses holding most tokens.

To mitigate these risks, here are our security suggestions:

  1. Increase the number of signers for the owner to enforce multi-sig management.
  2. Disable arbitrary settings of minters to prevent unlimited minting.
  3. Adopt vesting or continuous distribution to reduce the centralization of token distribution.

Security is the cornerstone of a healthy blockchain ecosystem. We will continue monitoring project security, performing timely security risk alerts, to jointly maintain the security of blockchain.

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Twitter: @MetaTrustLabs

Website: metatrust.io

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