We recognize the importance of trust and proper governance in any decentralized solution. We developed a long-term plan to transition the governance of the protocol to the users and community of the protocol. This DAO model will operate on the basis of the project’s token, which will be distributed across users, the community, investors, and the development team. This token main utility is to provide voting rights in the insurance claim dispute process and protocol changes voting.
In complex cases where the nature of the hack is ambiguous, this dispute process will include voting and investigation from the community and other protocol users. This way of governance will ensure transparency and fairness in each dispute since all participants are interested in producing the fairest result. There are the main sides of the decision process:
Users - they are interested in making honest decisions, as on one side, they can be in the same situation next time. On the other hand, each payment can decrease the insurance pool size, which balances the amount of payments that users can accept.
Investors, the team, and the community - all of them will have a vesting period for their tokens after payments. This forces them to accept only fair dispute results, as each of them can directly influence token price and, as a result, their own capital.
We plan to release the project token and develop DAO after the release of the protocol. Until this moment, we will gradually develop and release different features that increase the safety and decentralization of the protocol.
At the release stage, the protocol will operate via a multisig wallet, requiring the majority of the founders’ approval for any transactions for protocol updates or reimbursements.
Additionally, we will set a timelock contract on all transactions for reimbursements for 7 days. These transactions will automatically be posted in our Discord channel, where you can subscribe to receive notifications. This way allows you to be sure that the development team cannot at one moment take all the money from the protocol. About any payments, you will know in advance and have 7 days to withdraw all money from protocol.