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🔐 Upgrade Security: Timelocks & Multisig

Discover how to secure upgrades with governance controls

Learn upgradeable smart contract patterns

🔐 Upgrade Governance Models

Who controls upgrades? This question determines security. Single admin = fast but risky (one key compromise = total loss). Multisig = balanced (requires multiple signers). Timelock = safer (community can exit before malicious upgrade). DAO governance = slowest but most decentralized (token holders vote). Trade-off: speed vs security vs decentralization.

🎮 Interactive: Governance Model Comparison

Select a governance model to see its upgrade process, security level, trade-offs, and real-world examples. Compare models to choose the right security for your protocol's stage and TVL.

👤 Single Admin

One address (EOA or contract) has upgrade rights. Admin can call upgradeTo() anytime. Fastest but highest risk.

🔄 Upgrade Process
1. Admin calls proxy.upgradeTo(newLogic)
2. Transaction executes immediately
3. Proxy points to new Logic
4. Upgrade complete (< 1 minute)
🛡️ Security Level
Low
⚔️ Attack Resistance
Weak - Single point of failure
✓ Advantages
  • Fastest upgrade process
  • Lowest gas costs
  • Simple implementation
  • Good for rapid bug fixes
⚠️ Disadvantages
  • Single point of failure
  • Admin key compromise = total loss
  • No checks or balances
  • Community has no voice
🎯 Best For

Early development, testnet, trusted teams, low-value protocols

💼 Real Examples

Early-stage startups, MVPs, experimental protocols

🔒 Upgrade Security Checklist

1. Storage Validation

Use OpenZeppelin Upgrades Plugin. Run verify:upgrade before deploying. Catches storage collisions automatically.

2. Initialize Function Security

Use initializer modifier (OpenZeppelin). Prevents reinitialization attacks. Critical: call initialize() immediately after deployment.

3. Selfdestruct Protection

Never allow selfdestruct in Logic contract. If Logic is destroyed, Proxy becomes unusable. Parity hack lesson.

4. Admin Key Security

Use hardware wallets for admin keys. Never store in hot wallets or code. Rotate keys regularly. Consider multisig (Gnosis Safe).

5. Audit Before Mainnet

Get professional audit (Trail of Bits, OpenZeppelin, etc.). Focus on upgrade logic, storage layout, admin controls. Cost: $50K-200K but worth it.

6. Test Upgrades on Testnet

Deploy Proxy + Logic V1 on testnet. Perform real upgrade to V2. Test all functions. Verify state preservation. Only then deploy mainnet.

7. Emergency Pause Mechanism

Implement pause() function. If upgrade goes wrong, pause contract immediately. Buys time to fix or rollback.

🎯 Decentralization Progression

Most protocols start centralized and progressively decentralize. This balances speed (early stage) with security (mature stage).

1️⃣
MVP Stage: Single Admin

Fast iteration, low TVL (<$1M). Risk acceptable.

2️⃣
Growth Stage: Multisig (3-of-5)

Medium TVL ($1M-100M). Distributed trust.

3️⃣
Mature Stage: Multisig + Timelock

High TVL ($100M+). Community protection.

4️⃣
Established Stage: DAO Governance

Very high TVL ($500M+). Full decentralization.

💡 Key Insight

Upgrade governance is about trust minimization, not elimination. Even with DAO governance, someone writes the upgrade code. Even with timelocks, users must monitor proposals. Even with multisig, signers could collude. Perfect security doesn't exist. Instead, match governance to your protocol's maturity: single admin for MVP (move fast), multisig for growth (balance speed/security), timelock for mature (protect users), DAO for established (full decentralization). And always: audit, test, validate, then upgrade.

← Storage Collisions