Drogon Burner

Program ID

mainnet : 7y5MbLiNUR6gRbTBbfzr2G3Rh9HsK641VXun8uk725SV

CLI cmd to check the program : solana program show 7y5MbLiNUR6gRbTBbfzr2G3Rh9HsK641VXun8uk725SV

Audit

This code has been audited by Cyberscope the 13th of June 2024

Audit report : https://www.cyberscope.io/audits/drgn

Overview

The Drogon Burner Program is a Solana-based smart contract designed to manage and execute automatically the token burn operations of El Loco's drogon tokens. The program allows for the initialization of a Drogon account and its associated token account, transferring tokens from El Loco's wallet to the associated token account, and then scheduling a series of burns according to a predefined calendar. The program also ensures that the tokens are securely locked within an Escrow account.

Objective

The objective of this program is to provide a secure setup for token burning operations, including:

1. Initializing a DrogonAccount .
2. Creating an associated token account DrogonAccount with the authority set to the DrogonAccount.
3. Transferring a specified amount of tokens from El Loco's wallet to the EscrowAccount.
4. Creating an account for the burn schedule
5. Implementing a function that manage the burn based on the burn schedule.

Components

Main Accounts

• DrogonAccount:

  • PDA derived from a seed ("drogon_account").
  • Keeps track of drogon token mint, burn schedule initialization time, total tokens burned, and the associated token accounts and their initialization.

• Mint: The mint is coming from another contract deployed by pump.fun for which we have no authority (mint-authority and freeze-authority being revoked of course), so we set up drogon.mint manually.

• Escrow Wallet - Associated Token Account:

  • PDA derived from a seed ("escrow_wallet_account").
  • The account that will hold the drogon tokens to be burned.

• Burn Schedule Account:

  • PDA derived from a seed ("burn_schedule_account").
  • The account that will hold all the burn schedule

Main Functions

• Initialization

  1. Drogon Account Setup: To act as the main control account for handling burn operations.
  2. Escrow Wallet Creation: To hold the tokens securely before they are burned according to the schedule.
  3. Token Transfer to Escrow Wallet: To transfer tokens from El Loco's wallet to the escrow wallet, ensuring they are locked and managed by the program.
  4. Burn schedule creation: To establish a clear and immutable schedule that defines the frequency and quantity of token burns. The schedule and first burn starts 1h after initialization of the calendar.

• Burn Function

  • Overview : The burn function, `burn_tokens`, is a critical component of the Drogon Burner Program. It automatically executes token burns according to a predefined schedule, utilizing the current time provided by the Solana blockchain's context to determine the appropriate action.
  • Purpose :To enable full decentralization and allow any participant or automated system (like a cron job) to trigger the burn process
  • Operational workflow:
    • Step 1: Retrieve the current time from the blockchain's context.
    • Step 2: Use the current time to locate the relevant burn event in the schedule. This involves comparing the current time against the timestamps defined for each burn event.
    • Step 3: Calculate the total tokens expected to be burned by this point in the schedule.
    • Step 4: Compare the expected total tokens to be burned with the actual number already burned, which is tracked in the Drogon account.
    • Step 5: If the expected burn exceeds the actual burn, execute a burn for the difference, updating the state within the smart contract to reflect the new total of burned tokens.
  • Accessibility : Public, ensuring that it can be executed by anyone without requiring special permissions.

Burn Schedule

The burn schedule is predefined and outlines the percentage of tokens to be burned at each event:

#	Series	Day	Tokens to Burn	Stage Burn %	Burn % (Init Supply)	Burn % (Remain Supply)	i Duration (d)	Cumulated Burn
1	SEED BURN	0.00	60,000,000	20%	6.00%	6.00%	0.167	6.00%
2	SEED BURN	0.17	48,000,000	16%	4.80%	5.11%	0.167	10.80%
3	SEED BURN	0.33	42,000,000	14%	4.20%	4.71%	0.167	15.00%
4	SEED BURN	0.50	24,000,000	8%	2.40%	2.82%	0.167	17.40%
5	SEED BURN	0.67	21,000,000	7%	2.10%	2.54%	0.167	19.50%
6	SEED BURN	0.83	18,000,000	6%	1.80%	2.24%	0.167	21.30%
7	SEED BURN	1.00	15,000,000	5%	1.50%	1.91%	0.167	22.80%
8	SEED BURN	1.17	12,000,000	4%	1.20%	1.55%	0.167	24.00%
9	SEED BURN	1.33	6,000,000	2%	0.60%	0.79%	0.167	24.60%
10	SEED BURN	1.50	6,000,000	2%	0.60%	0.80%	0.167	25.20%
11	SEED BURN	1.67	6,000,000	2%	0.60%	0.80%	0.167	25.80%
12	SEED BURN	1.83	6,000,000	2%	0.60%	0.81%	0.167	26.40%
13	SEED BURN	2.00	6,000,000	2%	0.60%	0.82%	0.167	27.00%
14	SEED BURN	2.17	6,000,000	2%	0.60%	0.82%	0.167	27.60%
15	SEED BURN	2.33	6,000,000	2%	0.60%	0.83%	0.167	28.20%
16	SEED BURN	2.50	6,000,000	2%	0.60%	0.84%	0.167	28.80%
17	SEED BURN	2.67	6,000,000	2%	0.60%	0.84%	0.167	29.40%
18	SEED BURN	2.83	6,000,000	2%	0.60%	0.85%	0.167	30.00%
19	BURN A	3	30,000,000	20%	3.00%	4.29%	1	33.00%
20	BURN A	4	24,000,000	16%	2.40%	3.58%	1	35.40%
21	BURN A	5	21,000,000	14%	2.10%	3.25%	1	37.50%
22	BURN A	6	12,000,000	8%	1.20%	1.92%	1	38.70%
23	BURN A	7	10,500,000	7%	1.05%	1.71%	1	39.75%
24	BURN A	8	9,000,000	6%	0.90%	1.49%	1	40.65%
25	BURN A	9	7,500,000	5%	0.75%	1.26%	1	41.40%
26	BURN A	10	6,000,000	4%	0.60%	1.02%	1	42.00%
27	BURN A	11	3,000,000	2%	0.30%	0.52%	1	42.30%
28	BURN A	12	3,000,000	2%	0.30%	0.52%	1	42.60%
29	BURN A	13	3,000,000	2%	0.30%	0.52%	1	42.90%
30	BURN A	14	3,000,000	2%	0.30%	0.53%	1	43.20%
31	BURN A	15	3,000,000	2%	0.30%	0.53%	1	43.50%
32	BURN A	16	3,000,000	2%	0.30%	0.53%	1	43.80%
33	BURN A	17	3,000,000	2%	0.30%	0.53%	1	44.10%
34	BURN A	18	3,000,000	2%	0.30%	0.54%	1	44.40%
35	BURN A	19	3,000,000	2%	0.30%	0.54%	1	44.70%
36	BURN A	20	3,000,000	2%	0.30%	0.54%	1	45.00%
37	BURN B	21	15,000,000	20%	1.50%	2.73%	6	46.50%
38	BURN B	27	12,000,000	16%	1.20%	2.24%	6	47.70%
39	BURN B	33	10,500,000	14%	1.05%	2.01%	6	48.75%
40	BURN B	39	6,000,000	8%	0.60%	1.17%	6	49.35%
41	BURN B	45	5,250,000	7%	0.53%	1.04%	6	49.88%
42	BURN B	51	4,500,000	6%	0.45%	0.90%	6	50.33%
43	BURN B	57	3,750,000	5%	0.38%	0.75%	6	50.70%
44	BURN B	63	3,000,000	4%	0.30%	0.61%	6	51.00%
45	BURN B	69	1,500,000	2%	0.15%	0.31%	6	51.15%
46	BURN B	75	1,500,000	2%	0.15%	0.31%	6	51.30%
47	BURN B	81	1,500,000	2%	0.15%	0.31%	6	51.45%
48	BURN B	87	1,500,000	2%	0.15%	0.31%	6	51.60%
49	BURN B	93	1,500,000	2%	0.15%	0.31%	6	51.75%
50	BURN B	99	1,500,000	2%	0.15%	0.31%	6	51.90%
51	BURN B	105	1,500,000	2%	0.15%	0.31%	6	52.05%
52	BURN B	111	1,500,000	2%	0.15%	0.31%	6	52.20%
53	BURN B	117	1,500,000	2%	0.15%	0.31%	6	52.35%
54	BURN B	123	1,500,000	2%	0.15%	0.31%	6	52.50%
55	BURN C	129	6,500,000	20%	0.65%	1.37%	36	53.15%
56	BURN C	165	4,875,000	15%	0.49%	1.04%	36	53.64%
57	BURN C	201	4,875,000	15%	0.49%	1.05%	36	54.13%
58	BURN C	237	2,600,000	8%	0.26%	0.57%	36	54.39%
59	BURN C	273	2,275,000	7%	0.23%	0.50%	36	54.61%
60	BURN C	309	1,950,000	6%	0.20%	0.43%	36	54.81%
61	BURN C	345	1,625,000	5%	0.16%	0.36%	36	54.97%
62	BURN C	381	1,300,000	4%	0.13%	0.29%	36	55.10%
63	BURN C	417	650,000	2%	0.07%	0.14%	36	55.17%
64	BURN C	453	650,000	2%	0.07%	0.14%	36	55.23%
65	BURN C	489	650,000	2%	0.07%	0.15%	36	55.30%
66	BURN C	525	650,000	2%	0.07%	0.15%	36	55.36%
67	BURN C	561	650,000	2%	0.07%	0.15%	36	55.43%
68	BURN C	597	650,000	2%	0.07%	0.15%	36	55.49%
69	BURN C	633	650,000	2%	0.07%	0.15%	36	55.56%
70	BURN C	669	650,000	2%	0.07%	0.15%	36	55.62%
71	BURN C	705	650,000	2%	0.07%	0.15%	36	55.69%
72	BURN C	741	650,000	2%	0.07%	0.15%	36	55.75%
73	BURN FINAL	777	16,250,000	100%	1.63%	3.67%	36	57.38%

Deployment

1. This smartcontract is deployed on the the Solana mainnet.
2. Burn need to be executed manually. A Cron job will be set up but anybody can call the burn function.

Security

The Drogon Burner Program is designed with a strong focus on security to ensure that the SPL tokens designated for burning cannot be withdrawn or misappropriated. The following security measures are implemented to achieve this:

Escrow Wallet Authority: The Escrow Wallet, where the tokens are held before burning, is controlled by a Program Derived Address (PDA). PDAs are special types of addresses that do not have a private key and can only be controlled by the program itself. This ensures that no external entity can sign transactions to transfer tokens out of the escrow wallet manually. Controlled Access: Only the Drogon Burner Program has the authority to sign and execute transactions for the PDA. This ensures that all token burns are executed programmatically according to the predefined schedule, without any possibility of unauthorized withdrawals.

No Manual Withdrawal Functionality: The program does not include any instructions or functions that would allow for the manual withdrawal of tokens from the Escrow Wallet. This design choice ensures that once tokens are transferred to the escrow, they are locked in place and can only be burned according to the burn schedule.

Immutable Logic: Once the program is deployed and the update authority is revoked, the logic of the program becomes immutable. This means no further changes can be made to the contract, ensuring the security mechanisms remain intact and unalterable.

Ensuring Token Integrity: The combination of PDAs, the absence of withdrawal functionalities, and the immutable program logic ensures that the SPL tokens committed to the Drogon Burner Program are secure. The design guarantees that tokens can only be burned according to the predefined schedule, maintaining the integrity and trustworthiness of the token burn process.

Conclusion

This high-level specification outlines a fixed and immutable burn schedule for managing token burns using a public function, ensuring precise execution according to the predefined intervals and distribution pattern. This approach maintains the security and integrity of the burn process by allowing anyone to trigger the burns while adhering to the defined schedule.

Author

Built by El Loco.