How Can We Make Polkadot Treasury Safer? Preventing Scams & Fund Misuse!

Governance
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Hello Polkadot Community! :waving_hand:

I want to start a discussion on an important issue related to the Polkadot Treasury Funds. Recently, we have seen cases where scam projects and fund misuse have become concerns. Many proposals get approved, but there is no proper tracking system to ensure funds are used correctly. This could impact Polkadot’s long-term growth.

:cross_mark: Problems That Need to Be Addressed:

:small_blue_diamond: Scam projects receive free funds and disappear without delivering results.
:small_blue_diamond: There is no proper monitoring system to track if the funds are being used as proposed.
:small_blue_diamond: Some projects receive excessive funding, while important proposals struggle for resources.
:small_blue_diamond: Lack of transparency on how effectively treasury funds are used.

:light_bulb: Proposed Solution:

To make the Polkadot Treasury safer and more efficient, I suggest a multi-layered approval and tracking system:

:white_check_mark: Multi-Signature Approval:

  • Before releasing funds, projects must pass three layers of approval:
    :one: Community Vote (DOT holders decide)
    :two: Independent Review Committee (selected experienced members)
    :three: Smart Contract Validation (ensures proposal terms are followed)

:white_check_mark: Milestone-Based Funding:

  • Instead of releasing funds all at once, payments should be made step-by-step as milestones are completed.

:white_check_mark: Public Treasury Dashboard:

  • A real-time tracking system should be available to show:
    • How much treasury funding is allocated
    • Which projects are receiving funds
    • Their progress & spending reports

:white_check_mark: Penalties & Clawback Mechanism:

  • If a project misuses funds, there should be a slashing mechanism to recover lost funds.
  • Fraudulent actors should face penalties or bans from future proposals.

:white_check_mark: Regular Independent Audits:

  • Treasury spending should undergo third-party audits to ensure everything is being used properly.

:rocket: Expected Benefits:

:check_mark: Scams and fund misuse will decrease.
:check_mark: More transparency and trust in the governance system.
:check_mark: Legitimate projects will receive fair funding and proper tracking.
:check_mark: Polkadot’s long-term sustainability and value will improve.

:backhand_index_pointing_right: What do you think about this? How can we improve it further? Let’s discuss ways to make Polkadot Treasury safer and more efficient!

I hope all respected members understand my concerns and the importance of this issue. This post has been refined with the help of ChatGPT for better clarity, but the ideas and concerns expressed are entirely my own.

Best Regards
ABDUL RAUF

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Are you aware of OGtracker? OG Tracker This helps with some of these.

I’m not sure what you mean by smart contract validation. But funds given out via bounty (which is increasing in usage) can be milestone-based and selected by the curators of that bounty.

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