IV. Security & Privacy (How?)

A. The importance of security in decentralized blockchain governance

• Security is critical for ensuring that the blockchain remains stable and reliable, and bad code or ill-thought-out ideas can potentially result in loss of funds.

B. Best practices for ensuring security in the governance process

• Validators should actively scrutinize and participate in all voting to ensure that bad code or ill-thought-out ideas do not damage the network which may result in service downtime or loss of funds.

• The community should decide on the appropriate value in fiat terms for the cost of on-chain proposals to deter spam and phishing attacks which post malware links in governance proposals.

  • A significate deposit should be required to post a proposal, and if any harmful proposals are posted, Validators should vote NOWITHVETO so that the malicious posters will lose deposited funds.

  • Finding the right balance between ease of posting a proposal and protection against the posting of malicious proposals is important and will differ for each chain depending on the value of the governance token in fiat terms.

  • Proposers who do not have the funds to post their valid proposal should seek the support of a Validator or community member sponsor.

C. Annonymous Actors

• Can and should annonymous actors be trusted?

  • Depends on community

  • Higher risk of rugged