How do we stop fraud in the sns treasury system?

Governance
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With everything going on in the ecosystem this past month we have witnessed projects be accused of fraud such as yral, fuel ev, and estate dao. Those threads turned into something productive and revealing.

Today we face other issues with whale investors starting to use treasury funds for personal vendettas. We have witnessed one wallet take 40,970 ICP from the Trax treasury to attack other daos. This falls under misappropriation of funds as the treasury is meant for the dao to control and to help development of the project. By using this to send money to a personal wallet to buy tokens for themselves they are taking illegal actions with the funds.

There are a few issues at play here, we face the 51% attacks, treasury drains, and fraud. We have taken steps in the past to reduce the ability of draining treasuries, while we have ignored the actual attack vector allowing for one whale to takeover daos using other dao treasuries.

With this thread I hope we can brainstorm a way to reduce this type of fraud while improving the decentralization of the sns launchpad.

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I agree this is wrong.

I understand the motive, lets do it the right way and not be the bad guys.

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I think a big part of the problem is that many people just want to get funded without delivering anything real. That’s why I believe we need a proof-of-delivery model for DAOs.

Here’s the idea:

:light_bulb: Neurons should be locked when someone receives funding.
Only after delivering a verifiable milestone, a part of the neuron gets unlocked. No delivery = no more money. Simple.

Maybe a small amount can be given upfront to start, but the majority of the funding should be tied to actual results, not promises.
Didnt delivery, no more money.

It’s very crazy see these proposals, transfer X ICP to i don’t know who, with the excuse to pay development and other things…

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Maybe something like 50% of the treasury locked and tied to development milestones, sort of like grants.

A portion of the treasury is used as maintenance of the project, such as cycle costs, and other routine expenses.

While the rest goes towards liquidity and or exchange listings.

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I agree but this is very challenging to enforce through code… (in a way thay cant be gamed). But smarter people than me can figure out that part

We need a POP proof of progress protocol. :rofl:

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a reputation system would also help… voting power only is very easy to acquire, and give too much power to someone that does not collaborate with anything and can have bad intentions.
People that deliver could get some reputation and have more influence than just people that have money.

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