But if the funds are in ethereum is it not its own kind of country? I don’t see how they can go after the treasury if it is not within their reach. Once again I have no idea and I think no one else does either what kind of pandora’s box we are opening by venturing down this road. Are we supposed to address it or just whistle past the graveyard?
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This kind of response is precisely why I question the ability of Yearn governance to wade into these types of issues, and I applaud your recognizing the need to act carefully given most people’s lack of knowledge on this topic.
No, ethereum is not its own type of country.
Assuming a claimant is sufficiently motivated, they register a judgment they obtain in a sufficient amount of countries and use various aspects judicial process to interfere with Yearn and, assuming decentralized governance of the YFI treasury without the need of a multisig has been implemented, harass known or suspected YFI holders until a payment from the centralized indemnity fund is authorized. In the case of a sufficiently large judgment, harassment of known YFI holders would included colorable threats of imprisonment until payment is authorized from the indemnity fund to a judgment holder.
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So would the best course of action be to not do anything? I am also thinking about the inevitable government agencies trying to impose AML, BSA, KYC regulations on DeFi. Would Andre and the rest of us be subject to a perp walk a la Bitmex? This is pretty scary if so.
You are mixing up issues that have no discernible connection. This has nothing to do with KYC/AML regs or the current issues BitMex is facing.
Obviously, I am strongly opposed this proposal, but that is only because I think it would cause Yearn devs to become the most attractive litigation targets in all of crypto.
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I was under the impression that if Andre could be targeted by lawyers, then regulators would not be too far behind. Just so we are clear, we should not be worried about the latter and only the former?
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I have made no claim or argument about regulatory actions concerning Andre or any other dev. The existence of a standing indemnity obligation is likely to be neutral to slightly negative (negative as in bad) with respect to future regulatory action.
A standing indemnity obligation (backed by a meaningful revenue stream) will increase, perhaps substantially, the incentive for individuals to pursue civil lawsuits against Yearn devs.
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So is the best course of action to go back to business as usual? Does the current multi-sig have a target on their back for possible litigation? If so, would that not be an incentive for them to stop building? Maybe I am jumping around a lot but all of these issues seem inextricable connected to one another.
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Yeah, you are jumping around a lot, and no, these issues are not inextricably linked.
Currently, just about every crypto project has a central treasury governed by a multisig. Therefore, Yearn having the same in no way causes it to stand out from the pack.
What practically no crypto project has (if any) is a standing, public commitment to indemnify its devs from legal liability. If Yearn were to adopt this proposal, it would very much stand out from the pack and make its devs targets for litigation.
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You brought up some good points to think through. Eventhough our intentions are right…we need to think through the best way to implement this.
Taking a step back, so how does other opensource projects deal with the question of liability? I mean if a dev is contributing to say a linux project and that code gets used by a company that causes them loss. Surley the company cant go after the contributing dev? Is the issue of liability dealt with in the licensing of the opensource software?
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Should be a conduct code to analyze that points.
Well we have another PR nightmare brewing because people FOMOed into $LBI testnet contracts within minutes of Andre publishing his Medium article.
Update: This is 100% valueless, not in the meme sense, as in this is an experimental concept to be further developed and co-collaborated on. This won’t be used in the future, nor does it do anything more than create a perpetual distribution pool. Its shared for devs to help think tank and figure out how to create this new distribution mechanism. Don’t put funds into it. I promise, I will create things for you to use your funds for, but this is not it.
I am sure a lot more trust has been lost with LBI compounding the damage of EMN. Does anyone still think that a public relations/communications director is still not necessary? Let us please solve this ASAP to be able to clean up this mess and move forward once and for all.
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Closed since inactive. Feel free to reopen if this topic is still relevant.