Summary : This proposal is to react and blacklist a wallet which was used for a rug pull on the network.
Background : Rug Pull are quite common in the crypto space and can only prevented by detailed reviewing of smart contracts from Devs. Often there are new projects and people trust those Devs because they have not the technical opportunity to review a smart contract in detail. Lately we also had on Harmony a project which cause a rug pull and withdraw all the ONE and transferred to Binance where it’s probably cashed out. In such a case we as Block validator could have the opportunity to Blacklist a ONE Wallet to prevent a further cash out and maybe apply pressure on the Dev to refund. But in this we must act all together and very fast, so it’s get blacklisted immediately and don’t even have the chance to cash out.
Motivation : This proposal should help to get Harmony a safer place for asset. This can also only happen in a healthy validator economy, so we need a trigger system to get the ONE Wallet address fast implemented in the Blacklist or if possible, directly distributed to the Validator Nodes. To show we are still a decentralised network we need transparency and communicate this blacklist in public and explain why those addresses are placed there. We need detailed rules to get without a voting the address directly placed without. May a future partnership with Lossless Cash could be also an option.
Specification : One Wallet address which acting malicious (i.e. take part in a rug pull or Wallet Hacks) to the network economy needs to be placed on the blacklist and if technical possible directly distribute to validator nodes to prevent a further move of stolen assets.
Suggested voting options : Use of the Blacklist or not