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Governance and Security

4) Governance (veSQUDY)

  • Lock SQUDY (e.g., 1 week–4 years) to receive veSQUDY voting power.

  • Vote on: prize cadence & ticket price, fee splits, whitelisting new verification adapters, treasury top‑ups, LP strategy, grant approvals.

  • Bribery/Rewards: portion of dCampaign fees can flow to veSQUDY voters as incentives (DAO‑tunable).

  • Quorum & Safety: delayed execution timelock; emergency pause with DAO‑overridden reactivation.

5) Security, Compliance & Operations

5.1 Security Practices

  • Multi‑sig admin with hardware keys (≥2/3 or 3/5).

  • Staged rollouts: canary deployments on testnet; guarded mainnet upgrades.

  • Independent audits + continuous formal property checks (slither, echidna, foundry invariants).

  • Real‑time monitors: price oracles, LP health, abnormal on‑chain flows.

5.2 Compliance Notes (non‑exhaustive)

  • Jurisdictional exclusions for prize participation as required by law.

  • KYC for prizes above thresholds; storage minimized, handled by third‑party provider.

  • Disclosures: token is a utility token; no rights to revenue, equity, or dividends.

  • Users are responsible for local tax reporting on prizes.

5.3 Incident Response

  • Severity levels (P0–P3), public post‑mortems, bounty rewards for responsible disclosure, and user compensation frameworks for verified protocol faults.