The 17th KIR: Klaytn Ecosystem Audit Fund_Hacken


KLAY Funding

  • Proposed: KLAY worth USD $1,500,000


Brief Introduction of the Project

This document contains a proposal for Hacken OÜ 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 Hacken OÜ and its top audit team in a timely manner.

Key Deliverables

Audit certificates for the projects audited
Hacken 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 $1,500,000 to be used to subsidize Klaytn approved audit work
    • Quarterly funds dispensed as $375,000 payments. Unused funds will carry over to the following quarter and off-set any quarterly 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.
  • Hacken reserves the right to receive payment from the audit customers in any denomination and pegged pricing of that denomination to be agreed upon between Hacken and the audit customer on the basis of the Hacken service agreement and procedure.
  • In case, if any audit customer does not pay its portion of audit costs for any reason within one month after Hacken issues a completed audit certificate, the unpaid amount will also be paid from the audit fund allocation if possible.
  • The Klaytn Foundation shall inform Hacken of the audit needs one month before each quarter, and Hacken will reserve audit slots for that quarter.
  • Hacken will commit to provide up to 25 audit slots per quarter.
  • Each project should complete and provide an Audit Questionnaire (with code freeze and accompanying commit hashes) to Hacken at least one month before its audit is expected to start.
  • A 10% discount will be given to a project when it submits the Audit Questionnaire (with code freeze) at least one month 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 $375,000, any remaining amounts from a previous quarter will carry over towards the next quarter’s payment.
  • Hacken 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 $15,000 USD 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 Hacken will do its best to scale its development team to accommodate.