Definition ∞ An economic logic bug is a flaw in a decentralized protocol’s design that allows users to exploit its incentive mechanisms for unintended financial gain. This type of vulnerability does not necessarily involve a traditional code exploit but rather a miscalculation in how token rewards, fees, or penalties interact. Such a bug can lead to a protocol’s assets being drained, unfair distribution of value, or a collapse in its intended economic equilibrium. It represents a critical failure in the game theory and financial engineering underlying a digital asset system.
Context ∞ Economic logic bugs represent a significant risk in the decentralized finance landscape, often resulting in substantial financial losses and erosion of user trust when discovered. A key discussion revolves around the difficulty of fully auditing complex economic interactions within smart contracts, even with formal verification methods. Future mitigation involves more rigorous economic modeling, peer review, and robust bug bounty programs.
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