[BIP-658] Ecosystem-Council review and self-insurance cover

This proposal updates [BIP-198] by reviewing the members of the Ecosystem-Council covered by the DAO’s self-insurance fund

Summary

By nature of their work, major participants and service providers to the ecosystem are exposed to potential regulatory and legal liabilities. This proposal helps manage that risk. The Ecosystem Council is a group of active participants to the Balancer protocol. The Ecosystem Council will be delegated the administrative task to seek independent legal counsel to confirm use of any funds from the self-insurance fund are used as intended to cover unbudgeted litigation costs and government fines incurred as a direct result of commissioned work on behalf of the Balancer ecosystem.

Detail

Through governance resolution (BIP-14 and BIP-198), a self insurance fund of $1,250,000 USD was created (currently held by the DAO Treasury in BAL tokens).

This proposal is to ratify the use of that fund and its reach to protect the broader Balancer ecosystem, supporting MPs-SPs: Balancer Labs and the main service providers approved by governance:

  • Balancer Foundation,
  • Balancer OpCo,
  • Balancer Maxis,
  • Balancer Grants,
  • BDSP,
  • Beethoven X,
  • Hypernative and
  • Karpatkey.

Before any disbursement from the self-insurance fund to any applicant, the Ecosystem Council will consult with independent legal counsel who will verify a litigation cost and/or government fine directly related to Balancer work under an agreement with an expectation for coverage of such costs and it is not eligible under any other insurance coverage. The funds will be directly moved from the DAO Treasury multisig to recipients directly, or through Balancer OpCo, without additional governance vote.

Ecosystem Council

The Ecosystem Council at this time has representatives from Balancer Labs, the Balancer Foundation, Balancer OpCo, Balancer Maxis, Balancer Grants (represented by the Balancer Maxis), BDSP, Beethoven X, Hypernative and Karpatkey.

The Ecosystem Council meets as needed to coordinate on ecosystem plans. This formation was referred to in [BIP-1] Operating Framework for Balancer DAO as part of accountability mechanisms, ratified by [BIP-629] Balancer DAO Service Provider & Grantee Standards:

“There will be at least one internal monthly meeting, with mandatory attendance by representatives of every actively funded SP. The goal of this meeting is to ensure all SP’s are strategically aligned across the ecosystem.”

Specification

No action needed. If approved, this resolution prevails over any conflicting provisions.

1 Like

https://snapshot.org/#/balancer.eth/proposal/0xb87b41bd18ba132866a9fda82bd23aa95fabc333248f19d11936149389d33a71

totally agree on this, but holding these funds in BAL only seems not the best idea to me, cause most likely an issue that requires to use this cover will have a negative impact on the price of BAL anyway.