ZenGuard introduction:

Revolutionizing the onboarding process for the next generation of Web3 users, modular smart accounts (smart contract wallets) represent a groundbreaking solution. Much like how smartphone operating systems empower users to enhance functionality through apps, smart accounts offer the flexibility to integrate features via modules. However, the current landscape lacks a secure and trusted app store akin to the Google Play Store or Apple App Store, which are default features of our smartphones.

ZenGuard introduces a pioneering solution: a secure marketplace for modules. This marketplace enables smart account users to seamlessly discover and integrate trusted, audited modules into their smart accounts following on-chain verification. Moreover, ZenGuarden offers a user-friendly web console for developers, facilitating the creation and publication of modules. By providing a platform for third-party audit services, ZenGuard enables them to showcase their expertise and establish reputations, which can be verified on-chain within the marketplace.

ZenGuard is essentially a platform where developers can easily drop their modules after they've been given the green light. Plus, we're bringing in auditors to double-check everything and give that on-chain stamp of approval that users can trust.

ZenGuard is a protocol for all modular smart account ecosystems but is currently focused on the Safe account ecosystem as Safe is a battle-tested smart account with $100 billion under its custody. Safe Modules enable Safe Accounts to add additional custom features in the form of standardized Smart Contracts. These smart contract logic can be anything from Social Recovery, Passkey Auth, Session Key to DeFi Automation, and much more. We have created a non-exhaustive list here.  While currently focussed on Safe Account ecosystem, the ZenGuard protocol can be ported to other accounts ecosystems as well very conveniently and flexibly.

ZenGuard stakeholders and economics:

Establishing a robust and resilient marketplace necessitates the active and equitable participation of various stakeholders within the protocol. ZenGuard eminently follows this dictum and introduces a model designed to foster this collaboration, ensuring that every participant is incentivized fairly. To achieve this, ZenGuard outlines specific stakeholder behaviors and protocol requirements:

Diverse Module Ecosystem by Developers: We all know that the developers play a crucial role in building and enhancing secure modules for user Smart accounts. To encourage active participation, developers require incentivization mechanisms that not only support the creation and dissemination of modules but also offset the initial costs associated with module audits. ZenGuard proposes an automated process.

Secure Audited Module Ecosystem: Smart contract auditors are responsible for rigorously assessing the modules available on the ZenGuard marketplace to safeguard user accounts. Incentivization mechanisms are essential to motivate auditors to conduct thorough assessments. This can be achieved through fixed module audit fees and subscription fees for auditing services over a defined period.

Gatekeeping of Modules, Developers, and Auditors: Maintaining the integrity of the module marketplace demands secure gatekeeping of all stakeholders and their contributions. This process must be decentralized and fair, facilitated by a governance framework that ensures equitable participation and decision-making across the platform.

By emphasizing these stakeholder behaviors and protocol requirements, ZenGuard establishes a foundation for a secure and thriving marketplace ecosystem, fostering trust and innovation within the Web3 community.

Taking into account the outlined points, we propose a model that leverages a token economy to decentralize governance and ensure fair incentivization across all stakeholders, thereby cultivating a resilient and secure marketplace.

The proposed token for the ZenGuard protocol serves a dual purpose as both a utility and governance token.

As a utility token:

It facilitates incentivization for module developers and auditors, encouraging their active engagement within the ecosystem at a subsidized cost. Developers receive compensation from smart account users for each module installation, while auditors are remunerated by developers for conducting audits and performing on-chain attestations, which can be transparently verified.

As a governance token:

Establishing a trusted module marketplace necessitates robust gatekeeping and protocol governance. This is achieved through a governance mechanism driven by the ownership of governance tokens held by token holders and delegates. We advocate for the careful creation of the initial token holder ecosystem through meticulous token allocation, ensuring a balanced and inclusive representation within the governance framework.

Initial token allocation strategy:

The initial token allocation strategy considers the current and future stakeholders such as Smart account users, module devs, auditors, core team, and investors. Here is an allocation note.

Category Percentage Description
Ecosystem Fund 22% The Ecosystem Fund is a proactive program meant to stimulate development in the Collective ecosystem by providing funding to projects and communities. This includes smart account user airdrops.
Module developers 20% Initial and future module developers
Module auditors 10% Initial and future module auditors
Core Team/ Contributors 30% The people who’ve been working tirelessly to bring ZenGuard into existence
Investors 18% ZenGuard Investors
Total 100%
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