Crypto crimes today
"Last year was one of the most tumultuous in cryptocurrency history, with several large firms imploding, including Celsius, Three Arrows Capital, FTX, and others — some amid accusations of fraud... Despite the market downturn, illicit transaction volume rose for the second consecutive year, hitting an all-time high of $20.1 billion... Overall, illicit activity in cryptocurrency remains a small share of overall volume at less than 1%". Source
The Chainalysis report provides 3 fundamental information:
- Scam is present in the crypto world and can be carried out even by the most reliable entities
- The volume of crypto crime is increasing, it is the highest ever and is worth $20.1 billion in one year
- Crypto crime volume remains less than 1%
The total volume is so high that a small percentage is enough to steal a large amount of money.
A defense system is needed to lower the volume of illicit activities, increase the security and reputation of the crypto world.
Protection fund
A valid defense system to fight crypto crimes is the creation of a public fund. Any victim of a crime can propose the case to DAO and obtain the financing necessary to defend themselves. Therefore any victim does not have to pay anything to be defended for judicial and extrajudicial activities, they will only have to ask for and obtain the financing. The victim will pay the DAO a percentage of the litigation only if the legal activity is successful (called success fee).
The fund is financed through HBD earned through voting all posts tagged #crypto-defender, used for the defense of crime victims rather than to generate profits. Those who actively participate in the fund will obviously take profit (read Profits) which however is a consequence of a service given to crypto citizens.
Staking alone could in fact cover the entire expense of all crimes and still generate profits.
Staking has a total volume of;
Global Staking Market Cap
$164.47b
Global Rewards Per Year
$5.85b
Source
The proceeds from criminal activities are approximately quadruple the rewards from staking.
The number of daily cyber crimes is 2328, i.e. 849720 every year. The total cost of defending all victims of cyber crime is approximately $1.7 billion (estimating an average legal expense of $2000 per victim). Source
Profits
- Anyone who works for the fund will be paid for that
- VDO and HBDSHARES token holders can sell them since they are exchangeable on Hive Engine
- HBDSHARES token holders will receive a percentage of the HBD monthly accrued interest
- VDO token holders will receive a percentage of the HBD monthly accrued interest since they are part of the DAO. That percentage is greater than HBDSHARES holders
- Each financed lawsuit will seek a cyber crime litigation success fee. Success fee profits will be split among VDO token holders
- The reimbursement of legal costs will be added to the fund for reuse in the future
DAO
Every decision is proposed and approved by the DAO (no one else has that power). Members are those who hold any amount of VDO token and that amount is equal to voting power.
The DEO (Dao Executive Officer) and every other worker have the obligation to implement the approved decisions.
The DAO has the following tasks:
- decide the success fee for each legal action
- approve or refuse funding requests
- remove or add any type of profit
- propose and approve new rules for the management of the fund
Conclusion
The crypto world has the ability to finance the defense of itself for the purpose of social utility as well as profit. Linking profit to social utility allows us to generate wealth and offer services to citizens at the same time.
Cryptocurrencies are an asset like Fiat and can be used to pay for professional services. The project just described is the first proposal in history with the aim of profiting through service and free association between citizens
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