KIP-83: Establish Risk Protection Fund

Simple Summary

This proposal aims to establish a Risk Protection Fund, establish initial funding, and an ongoing funding source. The Risk Protection Fund will be placed under the management of the AdminDAO and will be used to reward users that report bugs and errors in the Protocol’s codebase.

Abstract

The creation of the Risk Protection Fund formalizes the process for rewarding users that identify and report bugs and errors in the Protocol’s codebase.

Motivation

As the KwentaDAO continues to successfully facilitate a higher volume of transactions, the risk of user loss becomes greater. Although users themselves must be aware of the risks of using the Protocol, a formal program that is similar to a traditional “bug bounty” program will incentivize users to report potential issues to the AdminDAO in detail. By proactively addressing reported issues, the KwentaDAO can prioritize building a reliable and positive experience for its users.

With the establishment of the Risk Protection Fund, the KwentaDAO will have a clear mandate, as well as the requisite funds, to evaluate and address bugs and errors moving forward. Additionally, the users of the Protocol will have an active role in this process.

Specification

For more information, visit the: Kwenta State Log