Blockzero Labs Financial Relief Fund

Hi fellow Citizens,

Seeing the (unfortunate) fallout regarding Flashstakes potential security issue I was thinking maybe we should consider a “financial relief fund” to help out people that got caught in the crossfire? This could apply to future projects as well, to minimize some risks.

Even though I think the team is trying their absolute best to accommodate everyone, in the end there will be some people left disappointed. More often than not, those people might not be Blockzero Citizens. After this incident, they might not ever become a citizen, being disappointed with their first interaction with our community/projects. They will miss out on awesome things and we will miss out on a potential awesome member to our community.

Random thoughts below…

What if we allocated a part of the Blockzero Index into the fund, or even by default used part of the index to cover for incidents like the Flashstake security issue (if that’s not already happening right now)?

Or maybe let people donate parts of their XLP/XSI earnings? I’ve seen mentioned in the forums some people think they earn to much XSI, they’d have a good incentive to donate parts of their earnings into the fund.

The xio.app interface could even have a “donate” button.

Maybe it could be an exclusive perk for becoming a citizen, as a way to incentivize people to actively participate within the projects while at the same time giving a feeling of safety.

2 Likes

I agree with the donation part but not for what you suggested, We can set up donations for some charities. But covering people losses makes no sense. If you are entering the crypto market, loss is eminent. Everyone is responsible for their own actions and their own money. As far as citizens are concerned this project has been organically growing and will do so in the future, until team is reaching their goals and providing results.
Also as far as I know (maybe I’m wrong), the current solution is preemptive and no harm was done.
Just my two cents.

5 Likes

I agree, we all understand that investing in bleeding edge of anything is risky, speaking for myself as hard as I may try to understand how DeFi pools work I am very much naïve to what does and doesn’t constitute a safety risk in this field. So I keep this in mind whenever participating in these things.

that being said I think OPs idea does give me an idea for a token opportunity through block zero labs. what if as an incentive to becoming a citizen one could stake, in a native stable coin with in an “insurance” pool. the aggregate of the profits obtained by each lp would not be redistributed back to the lp’ers but rather back into the pool. the aim being to provide low risk, long term growth of the pool and there by being able to cover the claims of participants. I would love to see this idea decentralized and work on smart contracts along the lines of, a lp’er can not lay claim in less than 12months from their stake date. or to have claims settled through smart contracts.

the program if successful could provide both more confidence from citizens to participate in block zero, as well as safe guard the organization from fall out of bad actors finding vulnerabilities within projects. I’m no finance guy, but it would seem to me that such ideas have been profitable for pension and insurance funds. why should it not work in the DeFi sector?

2 Likes

Thanks for the reply. Maybe I worded it wrong but I do not mean cover losses in the most simplistic sense. I don’t think holders before the snapshot (be it stakers/poolers/hodlers) should be covered in any way seeing as how the team has handled the event (edit: although I appreciate the xio/flash drops to try and cover for the migration costs). All should be fine when we have migrated.

But…

A group of people not affiliated with Blockzero have been unknowingly buying Flashstake thinking it was “on sale” so to speak, not knowing why it dumped so hard. They essentially bought a dead token unknowingly. We could maybe be lenient to a small group of people that were hit by this, although I understand it is hard to seperate them from bad actors.

I also understand that people should investigate a token before they make an investment, but in the heat of the moment (fomo) people don’t always do so. Although ignorance is a counter-argument against my whole proposition, I guess. I just think a little sympathy for a select few could go a long way and also grow Blockzero as a whole.

1 Like

I totally get your point and I agree with it. But let’s just say person A is a bad actor and he got tokens while exploiting the protocol and sold them in open market. Now considering the current scenario team caught the issue and in order to avoid the protocol being manipulated they stopped the liquidity and introduced the newer version of the tokens, to avoid the manipulation.
Considering your point there’ll be no way in knowing if the tokens bought are not by the same person and if we try to help certain few, what makes it certain that we’ll not be helping the same person.
Also I strongly believe in learning by mistakes, if you help someone now, they will be relieved and will most certainly make the same mistake again knowing they can be saved.
If the team tried to resolve these issues case by case, it will require a lot of time and resources, which can be used somewhere else.

I wholeheartedly agree with you. But if you are confident in the project, there are a lot of ways one can earn tokens, via contributing in this forum, hastags or providing the solutions. There are a lot of examples in the group.

2 Likes

I think there’s a few ways to determine if someone is a bad actor or not (via transactions/id and whatnot) but I can see how this would be a whole lot of work for too little gain (time spend better on growing the inner community).

I do agree Blockzero has a lot of ways to earn things, which in a way also acts as an insurance or at least a type of apprecation. Maybe that’s enough, although it still doesn’t cover for people outside our citizenship (but is a big incentive towards becoming a citizen).

Thank you for entertaining my idea. Regardless of your view on it, I appreciate the feedback :slight_smile:

2 Likes