This parameter change increased the maximum reimbursement amount from 20,000 to 40,000.

The goal is to increase this parameter to 100,000 over the next 2 cycles (it cannot be increased to 100,000 at once because the maximum single change allowed for this parameters is 200%).

Before Cycle 12, the upper limit for a compensation request was 100,000 BSQ while the upper limit for a reimbursement request was only 10,000 BSQ. As a result, because the arbitrator’s reimbursement requests would often be rather large, they had to make compensation requests instead of reimbursement requests.

This proposal established a per-case compensation rate for arbitrators (50 USD), as well as a 1% interest rate on BTC paid out in a cycle.

The arbitrator role is a risky, capital-intensive one, and these standards seek to better align the rewards with the risk. At the same time, these arbitration expenses can add up to a considerable sum, so they also act as an incentive for the DAO to reduce arbitration cases.

As a result of the April security vulnerability, this proposal seeks to establish a new security team as a core project function to handle auditing, responsible disclosures, bounties, and more, to make sure such an incident doesn’t happen again.