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REFHE Security Model

REFHE adds a stronger encrypted-computation boundary to confidential payouts without moving treasury authority away from the existing governance lifecycle.

Security Goals

  • keep employee-level or recipient-level manifests off-chain
  • bind encrypted evaluation inputs to the exact payout proposal
  • prevent payout execution if the encrypted evaluation has not been settled by the DAO authority
  • require a verifier program binding before a REFHE-gated payout can execute

Protected Invariants

Proposal Binding

The REFHE envelope is derived from the proposal PDA and stores:

  • DAO
  • proposal
  • payout plan

This prevents cross-proposal reuse.

Ciphertext Binding

The REFHE envelope requires:

  • input_ciphertext_hash == confidential_payout_plan.ciphertext_hash

This prevents evaluating a different encrypted manifest than the one approved by governance.

Execution Gate

If the REFHE envelope account exists, execute_confidential_payout_plan requires:

  • matching DAO / proposal / payout plan
  • status == Settled
  • settlement was recorded by the DAO authority
  • verifier_program.is_some()

Immutable Settlement Boundary

Execution uses the settled envelope only as an enforcement gate. Treasury release remains:

  • proposal-bound
  • timelocked
  • wallet-visible
  • auditable on-chain

What REFHE Does Not Claim

  • it does not claim fully homomorphic computation on-chain
  • it does not claim the PrivateDAO program cryptographically re-verifies REFHE computation on-chain
  • it does not claim that verifier execution is the canonical governance boundary yet
  • it does not hide aggregate payout totals from on-chain execution

Current Threat Model Focus

  • wrong proposal / wrong payout-plan linkage
  • missing or downgraded verifier binding
  • attempted execution before encrypted evaluation settlement
  • operator mis-routing of the encrypted bundle
  • stale or conflicting payout ciphertext inputs

Recommended External Review Focus

  • PDA binding correctness
  • settlement gating correctness
  • payout-plan / envelope mismatch rejection
  • execution path safety under malformed envelope data
  • auditability of emitted events and explorer-visible transitions