Budget Category: Legal

Proposal Kickoff: November 1st, 2020
Budget Amount: 20,000,000 SC per month, from block subsidy
Treasury Kickoff: 120,000,000 SC, from treasury
Timeline: Active until Jan. 2023
Stockpile Cap: 1,820,000,000 SC
Leftovers: to be returned to treasury

This proposal is to put aside a large stockpile to handle legal issues related to the Sia network. The primary intention of the legal stockpile is precisely to be a stockpile, in the event that a significant event on the network requires large defense spending. Part of the game theory behind this stock pile is that you are less likely to be sued if your opponent knows that you have the legal resources to bulldoze them, and it is easier to come to a settlement.

The general thought is that this would be applied to case law around hosting (for example, what happens if someone uploads an illegal file to the Sia network), encryption, freedom of speech, and securities law. We hope to never need to touch this stockpile, but having it gives us significantly more leverage as a community than not having it.

In the short term, small portions of the budget (intended to be substantially less than 20 MS per month) will be used to fund things like legal memos for hosts about the legality of being a host in various jurisdictions.