Keyper Compensation Program

Proposal

Create a Keyper Compensation Program to promote participation, especially uptime and communication.

Background

Uptime

Low or inconsistent Keyper uptime creates a risk that the Keyper sets will not be able to achieve a minimum threshold and generate decryption keys. If this occurs, the Shutter commit-reveal threshold encryption service will be disrupted.

• Gnosis Chain Keypers: We have 6 of 7 Keypers online. (Threshold is 4/7 Keypers.)

• Shutter API Keypers. We have 6 (inc 3 internal) of 11 Keypers online (Threshold is 5/11.) ,

Communication

Inconsistent or slow communication also makes it difficult to ensure that updated packages are installed and that incidents are resolved in a timely manner.

Rationale

A Keyper Compensation Program will encourage participation (especially uptime and communication), improve network performance, and recognize Keypers for their valuable service. The compensation for the initial period is only open to the Keypers that are already registered.

In the short term, the Keyper Compensation Program is a straightforward starting point. In the medium and long term, Shutter will likely require a more elaborate incentivization, tokenomics and staking system.

Estimated Costs

Keypers will be compensated at a rate of 50 USDC per month if they achieve desired uptime and communication standards.

Estimated cost of 4,500 USDC = 15 Keypers * 50 USDC per month * 6 months (initial period). Maximum cost of 5400 USDC = 18 Keypers * 50 USDC per month * 6 months (initial period).

Implementation

At the end of each month, brainbot will review each Keyper's uptime and communications. If a Keyper's uptime and communications are up to the following standard (90% uptime and a communication channel open) for that month, brainbot will schedule the Keyper to receive compensation for that month. If not, brainbot will provide feedback on how the Keyper may improve.

Compensation will be paid by the Shutter DAO 0x36 via Decent vote every 3 months.

Platform

Snapshot (if passed, this proposal will not trigger an onchain transaction)

Voting Options

Vote “FOR” to if you support a Keyper Compensation Program

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Vote “AGAINST” if you do not support this proposal

OR

Vote “ABSTAIN” if you do not have an opinion but want to help the vote reach quorum