Nodal Audit Platforms and Escrow Funding

In the context of national blockchain strategies, there is a call for an increased focus on the development of an ecosystem of independent, nodal Audit platforms. These platforms act as nodal agents, executing contracts to release rewards directly from an Escrow account whenever a cybersecurity or data protection breach is identified on the platform’s application layer.

Escrow Funding

The Escrow should be funded by each participant fintech platform, which is part of a regulatory sandbox network. The admission to the regulatory sandbox should not require a minimum capital. Instead, the size of the network maintained by the participant should determine what each participant will contribute to the Escrow in the event of a breach.

Sustainability of Platforms

This argument is based on the critical performance requirement for the sustainability of Web 3.0 platforms - “public performance”. Sustainability in this context should not only be seen from the compute power from each participant, but also the participant’s health, status, and quality of data processing on a public network.

Rewarding Sustainability

One approach to encouraging sustainability is to reward those with good sustainability scores. The better the ESG scores, the more rewards or governance a validator or participant can have. By giving rewards, participants are encouraged to practice sustainable solutions which ripple through the individuals governed by the participating entities.

Audit-Based Rewards Distribution

The conversation also touched on the topic of audit-based rewards distribution, specifically the ESG scoring model. However, no specific literature or resources were provided on this topic.

Treasury Pot for Rewards

An interesting question raised was about the source of the Treasury Pot for rewards. In the event of a venture capital or private equity fund injection into a governance system, how does an institutional investor get a stake in the governance of rewards? This question remains open and further research or discussion is needed.