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Sponsor Incentivized Security

Definition

Sponsor incentivized security involves external parties providing economic rewards to uphold a network’s safety. This model aims to strengthen the security posture of a protocol by aligning the interests of external sponsors with the network’s well-being. Sponsors might offer bounties for identifying vulnerabilities, reward honest validators, or subsidize security audits, thereby augmenting the native economic security provided by the protocol itself. It introduces an additional layer of defense against attacks and malicious behavior, leveraging external capital for collective benefit.