Proposal: Security Subsidy Program for Scroll Builders
I vote FOR this proposal. I have a number of concerns, highlighted below.
Rational:
Given that my cons are longer than my pros, you may think it strange that I will support this proposal. Why? The pain point it resolves for early stage projects is very real having personally faced this issue. Furthermore, just because I disagree with an approach doesn’t make it invalid.
Rolling an investment vehicle in to audit provision is an interesting idea and for that alone, i’m interested in seeing the uptake on this. But, i do feel like it should be one or the other: Exclusivity or Equity.
Personally, I think its very hard to enforce onchain exclusivity and you may well hinder the project by not allowing them to move to where their future community/product market fit may be.
So, that leaves equity/tokens as the alignment mechanism and it’s a good mechanism. Personally though, I don’t think I would be willing to part with equity/tokens for an audit, especially when numbers like 1-2% of the total token supply would be part of the deal (please correct me if I am wrong).
I’d really like too see the due diligence framework that will be applied to applicants because, although an equity alignment mechanism is good, it creates a different dynamic for the grantors because now they need to be looking to maximize DAO return, not just supporting promising builders, which may skew selection toward projects with clearer monetization/tokenisation paths rather than pure innovation.
Pros
- Addresses Real Need: Security is expensive barrier for early-stage projects
- Proven Partners: Immunefi & Areta have good track records
Cons & Concerns
- Complexity: Investment structure, legal entities, exclusivity clauses add complexity
- Execution Risk: Many moving parts, coordination between multiple entities
- Unclear Governance: Transition from Scroll Foundation leadership to DAO unclear
- Legal Complexity: Investment contracts, exclusivity enforcement
- Overt Dominance Assertion - Having projects give up equity AND enforcing exclusivity seems feels like overs.