Hey @DAM really appreciate you starting this conversation here on the governance forum and thanks for also contributing on Discord. It’s great to have members of the community and affected users share their perspective and ideas on how to move forward.
Unfortunately, as I see it, there’s no way to sugarcoat this loss - certainly not with a percentage of revenue. The protocol revenue is really low atm, and it would take ages to fill this jar.
I wanted to chime in because we have discussed a lot of these possibilities between other contributors around here. The main issue with this is today revenue is at a low point (we were already pretty far from breaking even), and sharing a larger chunk with a recovery fund, would have a cascading effect: unwinding of veBAL/auraBAL positions, price depreciation, reduced efficiency of emissions and incentives, lowering liquidity, lowering fees, lowering revenue etc. in a death spiral.
If a proposal passes with veBAL holders taking the hit sharing their portion, a losing minority would still be rugged from their fee split. But for the survival of the protocol long-term, if veBAL is willing, I’d rather see this increase flowing towards the DAO Treasury so we can maintain a healthy runway and keep building.
The Foundation and its subsidiaries have taken measures to cut spending after the hack, reducing the current burn (full update coming soon). By the latest kpk Financial Report, there’s a healthy stablecoin runway of over 2y, but I would like us to be back at the ~5y range (considering hard assets).
In due time, I truly believe the recovery will come - at least partially, and most users will be made whole. But for now, we shouldn’t shorten our working capital reserves so rapidly.