MD-125: Risk Assessment for Staking and Governance Launch

Description: A desideratum requiring comprehensive identification and mitigation of risks associated with launching staking and governance mechanisms on Movement L1.
Authors: Andreas Penzkofer
Approval:

Overview

This desiderata establishes the requirement for a comprehensive risk assessment framework for launching staking and governance mechanisms on Movement L1. The framework must identify potential risks and provide clear mitigation strategies to ensure a secure and where possible decentralized launch.

Desiderata

D1: Comprehensive Risk Assessment Framework

User journey: Network operators and participants can rely on a thorough analysis of potential risks and corresponding mitigation strategies for staking and governance launch.

Description: Develop a comprehensive risk assessment that identifies all potential risks associated with launching staking and governance mechanisms, categorizes them appropriately, and provides specific mitigation strategies and techniques for each identified risk.

Justification: Launching staking and governance without proper risk assessment could lead to network security vulnerabilities, centralization issues, governance attacks, treasury exposure, and regulatory compliance problems. A systematic approach to risk identification and mitigation techniques is essential for a successful launch.

Recommendations:

Identify risks across staking and governance categories
Provide specific examples and root causes for each risk
Develop actionable mitigation strategies for each identified risk

D2: Behavioral Recommendations for Launch

User journey: Network operators and participants can follow specific behavioral guidance to implement staking and governance launch in a secure and decentralized manner.

Description: Provide clear behavioral recommendations for staking and governance launch that guide implementation decisions and operational practices.

Justification: While risk assessment identifies what could go wrong, behavioral recommendations provide specific guidance on how to implement the launch correctly. This ensures consistent application of best practices across all stakeholders.