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F-2025-0004·state-corruption

Permanent reward loss for burnt veNFTs

FixedlendingmonadveToken
TL;DR

Rewards accrued to veNFTs that were later burned could not be recovered, causing user funds and treasury revenue to be permanently locked in the contract.

Severity
HIGH
Impact
HIGH
Likelihood
MEDIUM
Method
MManual review
CAT.
Complexity
MEDIUM
Exploitability
MEDIUM
02Section · Description

Description

The reward accounting tied accrued rewards to the veNFT token. When the token was burned, the rewards remained accounted to a token ID that no longer existed, with no recovery mechanism. The funds were not destroyed, but they became unreachable by any claim or admin path.

03Section · Impact

Impact

User funds permanently locked in the contract. Treasury revenue permanently diverted from circulation. No recovery path without a contract upgrade.

04Section · Recommendation

Recommendation

On veNFT burn, either claim all pending rewards to the owner address before the burn completes, or route accrued rewards to the protocol treasury via an explicit administrative path. Add tests asserting that no funds become unreachable when a veNFT is burned.

Composable Security ID: NRL-6c19a5e-H03. Neverland Money: Fixed. Composable Security: Fix verified during retest.

Status
Fixed
Fix commit
816c394500f1
Fix date
2025-08-22
F-2025-0004