# TCT-4-AuditOne - Smart Contracts for Risk Coverage Pools and Token Economy

## Approved with Conditions

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The Tangle Community Treasury has agreed to approve the 4th grant submitted to AuditOne.
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## 📈 Summary

This first grant was submitted on the 7th of April by AuditOne and the second Tier II proposal the Treasury reviewed. AuditOne was also the first project to give back to the Community Treasury by offering 0.5% of their $AUDIT token supply to show appreciation and give back to the community.

This grant supports the ecosystem with a platform that supports smart contract security. Even today, we regularly hear projects' getting hacked. As Shimmer EVM and smart contracts go live on the Shimmer mainnet, the ecosystem must have a provider to offer not only smart contract security auditing, but also an insurance pool. As AuditOne states, a complete security infrastructure consists of more than just audits but instead includes insurance pools that likewise give liquidity providers meaningful use of their tokens, as well as, a detailed tokenomics that includes the entire security community from Auditors to risk providers.

The committee supports solid projects with communities that have their own token and treasure. As the Shimmer Community Treasury is small, we can help other projects with their own tokens and treasuries to flourish and thus bring new valuable treasuries to the space that support the positive growth of the entire ecosystem.

## 🤔 Committee Considerations

### Technical considerations.

Several technical considerations went beyond the capabilities of the committee. We asked several questions and voiced concerns about how the risk pools stand up against massive smart contract policy losses. AuditOne explained the safety factors that will be inplace to ensure a healthy pool and how losses can always be covered.

Further, the committee couldn't reach an agreed position and see past their initial reservations. However, these reservations partly came from a need for more technical understanding. The Treasury then gave a couple of hours to one of the backup reviewers, Umair Sarfraz. Umair is an experienced software engineer and researcher who also worked at the IOTA Foundation for about five years, where he primarily contributed to the Trinity wallet, client libraries, and Firefly.

Umair did a great job looking at competitors and requesting information on the project's uniqueness. Further, he analyzed the tokenomics and protective measures for the token pool liquidity providers. This technical review gave the committee better information to consider. The committee further asked for a more detailed budget summary, milestone execution breakdown, and more clear project analysis.

AuditOne's team took additional time to present the requested information to the committee carefully. With this other information, we agreed to fund this project.

## :100: Conclusions

The community treasury not only looks forward to funding a smart contract insurance pool, but we are happy to support security utility applications for our space. A significant hack can easily deter all positive momentum the Shimmer ecosystem has made recently. Security must be a considerable priority not just for project builders but also for the community.

Further, we appreciate AuditOne and their returned support to the community by donating 0.5% of their token supply to the treasury. These tokens will have an 18-month vesting period with an unlocking schedule determined by the team.

It's actions like these that don't just give back to the Treasury but then give back to the community. We wish AuditOne the utmost success, and thus, this will not only support the ecosystem but will also leave the Treasury with a valuable asset that will later fund initiatives to benefit the community and positively grow the Shimmer ecosystem.