Submitted by kn0t, also found by 0xc0ffEE, 0xrafaelnicolau, Decap, federodes, Ruhum (1, 2), CAUsr, OpaBatyo (1, 2), 0xNirix, 0xBugSlayer, 20centclub (1, 2), MrPotatoMagic, rbserver (1, 2), and 0xCiphky
The primary impact of this bug is that the protocol cannot change the mint and art creation fees as intended. This limitation has the following consequences:
The protocol is unable to set the correct mint fee of 0.00005 ETH per NFT minted, as documented in the specifications:
This discrepancy between the intended fee (0.00005 ETH) and the maximum settable fee (10,000 wei) renders the fee adjustment mechanism ineffective.
The protocol loses the ability to adjust its revenue model in response to market conditions or strategic decisions, as both the mint fee and art creation fee are effectively locked at their initial values.
Below lines demonstrate that the fees are being applied as direct values rather than percentages, contrary to the setter functions assumptions.
From src/PhiFactory.sol:
From src/art/PhiNFT1155.sol:
Its important to note that while the immediate financial impact may be limited if the initial fees were set correctly, the long-term implications of this inflexibility could be significant for the protocols adaptability and financial management.
This POC demonstrates the inability to set the correct protocol and art creation fees as intended by the protocol.
ZaK3939 (Phi) confirmed and commented via duplicate Issue #13
