#  - Allocate $500k to Long-Term Code4Rena Auditing Budget
```plain text
Author: Nicholas
Date: 2022-09-01
```

## Synposis

The DAO should lock in favorable pricing for Code4Rena protocol audits by allocating $500k to a long term relationship with Code4Rena, which will fund multiple code audits for current 

## Motivation

Code4rena has proved to be the most productive form of auditing we have engaged in so far, according to protocol devs @Anonymous and @Anonymous. 

C4A will be implementing a fee increase in the short term. Trebien, our contact at C4A is encouraging us to lock in the current 25% fee rate now with a larger long term contract, before the price hike. 

<u>Requirements for a long term agreement with C4A</u>

- $300k commitment (minimum)

- 20% deposit up front (minimum)

B<u>enefits:</u>

- Lock in today's 25% base fee (a price hike is imminent)

- Reduce base fee by 1.25% based on C4a organization discount for a total fee of 23.75%

	- Org fee discount: 1% _of the fee_ off for every 100k committed

	- 25% * 0.95 = 23.75% fees

- 10% rush contest fee waived

- 20k minimum contest prize, instead of 30k (before fees).

- Priority to co-marketing resources (with enough lead time)

<u>Methodology</u>

Funds will be allocated and sent to the multisig. A 20% deposit will be immediately paid to C4A to secure the above pricing. The DAO delegates responsibility to use the remaining 400k USD to the protocol devs, who will set up contests with C4A as needed, and communicate with the multisig to queue and execute transactions to fund those contests. 

## Specification

- Add a 500k USD payout to dao.jbx.eth. 

- Upon distribution, the multisig should immediately swap for USDC using Matcha. 

- Multisig should pay 100k (20%) to 0xC2bc2F890067C511215f9463a064221577a53E10.

- Multisig should custody the remaining 400k. Protocol devs will communicate with the multisig to send portions of the remaining 400k to Code4rena as needed to fund subsequent audit contests.

## Rationale

By allocating 500k USD today, the DAO locks in good prices with a proven service provider. Audits are essential to ensuring the security of the protocol, which is a crucial element of the DAO Foundation, which is dedicated to supporting maintenance and access to the Juicebox Protocol. The sum is appropriate because the primary goals of the JBDAO Treasury are to pay for building and security of the protocol. 

## Risks

It could be better to only take the deposit out of the treasury now, and wait to add he remainder in separate payouts as contests come up, but this increases overhead. 

It may be wiser to stake the stablecoins instead of holding them in the wallet.

## Timeline

Execute in GC#31