Overview
The Security Council (SC) is a DAO-elected governance body essential to the decentralized operation of pNetwork v4. It is responsible for monitoring node performance and distributing protocol fees. The SC operates as a self-organizing working group, ensuring that the protocol runs smoothly without central oversight. It is composed of at least 5 members.
Key Responsibilities
The SC operates autonomously, with members self-organizing and deciding on their own workload. Initial coordination will require more time, but the ongoing workload is expected to stabilize to around 30 minutes per month.
1. Node Monitoring & Validation
- Goal: Ensure that only active and functional nodes are rewarded, maintaining the network’s integrity.
- Task: Verify which nodes are active and up to date within the network.
- Procedure: TBD
2. Fee Distribution Management
- Goal: Ensure fair allocation of fees to node operators based on their contributions.
- Task: Manage the distribution of protocol fees to node operators at the end of each epoch.
- Procedure: TBD
3. Releasing Updated Node Software
- Goal: Contribute to the security and functionality of the network
- Task: Ensure that nodes are running the most up to date and secure software versions (when necessary, e.g., for bug fixes, security patches, or new features).
- Procedure: This process involves generating a cryptographic key in a secure environment, using it to sign the updated node software, and then securely destroying the key after the signing process. For further details:
Compensation
SC members receive organic protocol fees generated from the network’s cross-chain activities. A minimum of 10% of the total fees per epoch is proposed as compensation for SC members, with the option to adjust this percentage based on community feedback.
Election Process
The SC is elected through a DAO proposal (PIP).
- Candidacy: Anyone from the community can propose themselves as a candidate by submitting their profile to the pNetwork forum.
- Voting: The DAO will elect at least 5 members to the SC via a DAO proposal (PIP). An odd number of members is recommended to prevent deadlocks in decision-making.
In the event of member resignation or inactivity, the DAO is responsible for electing new members to maintain a fully active 5-member council.
Changes
- Member Resignation: SC members can resign at any time, and the DAO must find new candidates to maintain a 5-member council.
- Replace Members: If fewer than 3 out of 5 members are active, the remaining members and/or the DAO should propose replacing inactive members to ensure the SC continues functioning.
Inactive or Malicious Security Council
- If the majority of SC members becomes inactive or fails to fulfill their duties, operations may temporarily stall. However, an inactive or malicious SC cannot compromise the security of the protocol. The worst-case scenario is that fees from affected epochs remain unallocated or undisturbed.
- The DAO should promptly recognize the issue, declare the old SC obsolete, and elect a new council composed of trusted members to resume fee distributions and node monitoring.
- Thanks to pNetwork v4's modular architecture, token issuers have the authority to update node references (to other pNetwork v4 nodes or their own/third-party nodes) and can replace the Fee Manager with a new one connected to a newly elected SC, ensuring continued governance, fee distribution, and node monitoring.
Conclusion
The Security Council is a crucial component of pNetwork v4, responsible for ensuring fair fee distribution and node monitoring. For more details or to participate, please reach out on the pNetwork forum or other channels.