The 17th KIR: Klaytn Ecosystem Audit Fund_FYEO


KLAY Funding

  • Proposed: KLAY worth USD $480,000


Brief Introduction of the Project

This document contains a proposal for FYEO to become a regularly available auditor for Klaytn ecosystem partners and projects.
The goal of this proposal is to set up an audit fund for the Klaytn ecosystem to help select partners and projects to have their projects audited by FYEO and its top audit team in a timely manner.

Key Deliverables

Audit certificates for the projects audited
FYEO proposes to create a Klaytn Ecosystem audit fund for audit services as follows:

  • Starting at the time of project approval (defined in Section 4 below)
    • A total yearly budgeted fund of $480,000 to be used to subsidize Klaytn approved audit work which would equate to 120 days of audit work.
    • Quarterly funds dispensed as $120,000 payments. Actual audit costs for each project will be scoped and settled on a per project basis: 50% of the costs will be paid using the above mentioned audit funds, and the other 50% of the costs will be paid by the individual ecosystem companies (the audit customer) themselves.
    • Projects must book with FYEO 45 days in advance of audit commencing
  • FYEO reserves the right to receive payment from the audit customers in any denomination and pegged pricing of that denomination to be agreed upon between FYEO and the audit customer.
  • In case, if any audit customer does not pay its portion of audit costs for any reason prior to starting the audit the unpaid amount will also be paid from the audit fund allocation if possible for the audit to begin.
  • The Klaytn Foundation shall inform FYEO of the audit needs one month before each quarter, and FYEO will reserve audit slots for that quarter.
  • FYEO will commit to provide up to 30 days of audits per quarter.
  • Each project should complete and provide an Audit Questionnaire (with code freeze and accompanying commit hashes) to FYEO at least one month before its audit is expected to start.
  • A $500/day discount will be given to a project when it submits the Audit Questionnaire (with code freeze) at least two months before the audit start date.
  • If at any time, the quarterly fund is used up, Klaytn can decide to recharge with additional funds at its discretion.
  • In case the quarterly fund amount is not used up in any one quarter, the remaining amount will be carried over to be used for payment calculation in the following quarter term. For the avoidance of doubt, all quarters will be adjusted up to the agreed quarterly amount $120,000, any remaining amounts from a previous quarter will carry over towards the next quarter’s payment.
  • FYEO reserves the right to not provide audit services for specific projects after its own internal scoping and evaluation (e.g. below standard, any legitimate concern, against policy, etc.)

Any project exceeding the scope and complexity of $120,000 USD (30 days of audit work) will require a custom scope and is subject to additional discussion within the given time. As such, very large projects may use multiple audit slots per quarter. In such cases FYEO will do its best to scale its development team to accommodate.