ApeCoin DAO, the Decentralized Autonomous Organization that governs the activities of the native token of the Bored Ape Yacht Club (BAYC) ecosystem APE, has given its consent to the $4.4 million bug bounty program with Web3.0 leading bug bounty platform Immunefi. The agreed cost of the bug bounty program is the current value of 1 million APE.
“As we near the launch of the ApeCoin staking system outlined in AIP-21 and AIP-22, we propose taking additional measures to ensure the DAO is following smart contract security best practice,” an abstract from the proposal outlined “This proposal uses treasury assets to fund a 1 million $APE bug bounty program with Immunefi, and partners with Llama to help design, implement, and run operations of these initiatives.”
ApeCoin DAO made this move as a preventive measure against prospective attacks on its upcoming token staking mechanism.
Taking cognizance of a snapshot of the vote cast to propel the decision, it was discovered that 3.9 million APE users representing 57.92% of those who participated in the poll, voted in favor of the proposal. Another 2.9 million (42.08%) voted against the proposal tagged AIP-134.
Bug Researchers to Earn Rewards
Seeing that the proposal has been approved, the bug bounty program is expected to go live in a system where staking rewards are issued to apecoin and Ape Non-fungible token (NFT) stakers who identify the vulnerabilities in the ApeCoin smart contract.
Notably, this staking system is running on a testnet but will not start accruing until early December as against Mid-November which was previously agreed upon.
Hence, Immunefi which is believed to have protected $100 billion in user funds serving over 300 clients, will have its researchers earn rewards for every software and security flaw they identified. Over time, Decentralized Finance (DeFi) attacks have become prevalent in the crypto industry.
Such bug bounty programs have come to the rescue of so many victim organizations, reducing the impact of the attacks After the Solana-based DeFi trading platform, Mango Market was hacked, its community also voted for a proposal to pay a hacker’s bounty worth $47 million.