[bisq-network/proposals] Reimburse victims of the security incident using the DAO via a Special Refund Agent (#206)

wiz notifications at github.com
Thu Apr 9 18:17:03 UTC 2020


> _This is a Bisq Network proposal. Please familiarize yourself with the [submission and review process](https://docs.bisq.network/proposals.html)._

## Summary

This proposal is an alternate proposal to https://github.com/bisq-network/proposals/issues/205 - instead of modifying the Bisq code to change the Bisq donation address to the victim's Bitcoin addresses to compensate them for their losses, it proposes to use the DAO to approve issuance BSQ in 12 monthly payments to a Special Refund Agent, which would sell the BSQ to the Burning Man and send the BTC to the victims.

## Proposal

Our current estimate is that there are 6 victims with a total loss about $240K USD. After we finalize the investigation of the incident and come to an agreement wth the victims, I propose the DAO reimburse the victims the equivalent USD amount they were owed at the time of the incident as follows:

1) The DAO will reimburse the victims what they are owed in 12 equal monthly payments. For example, if the total is $240K and we split this across 12 payments, it would come out to $20K per month. This would be exempt from the monthly budget (currently $60K).

2) A temporary role will be created called the Special Refund Agent. The SRA will make a BSQ reimbursement proposal each cycle for the monthly payment due to the victims using the BSQ issuance rate (denominated in USD) displayed in the screenshot for the current cycle's issuance rate, as defined each cycle by the Compensation Maintainer.

3) The SRA will sell this BSQ to the Burning Man, at a fixed rate which is equal to the same rate as the BSQ issuance rate (denominated in BTC) displayed in the screenshot for the current cycle's issuance rate, as defined each cycle by the Compensation Maintainer. The Burning Man will prioritize these trades buying BSQ from the SRA.

4) The SRA will pay out BTC to the victims and post proof of his transactions in his monthly report, similar to how the Burning Man posts a Proof of Burn transaction in his monthly reports.

5) After the 12 cycles are completed, the victims will be repaid in full and the SRA role will be terminated.

6) The security incident victims would all need to agree to this proposal, as well as a full vote by the DAO stakeholders for it to be considered approved.

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