In May 2022, we started a conversation with Paradigm about joining the Code4rena DAO. Paradigm’s work is likely familiar to many of us in the community – they run arguably the most difficult CTF competition in the space, developed the Ethereum toolkit Foundry, and have frequently published writings about the exploits they uncover, such as “Ethereum is a Dark Forest” and “Escaping the Dark Forest.” As a leader in smart contract security with a talented team and a uniquely crypto-native perspective, Paradigm is a natural fit to join the DAO.

During their time evaluating a collaboration with Code4rena, the Paradigm team conducted extensive interviews and research on ways Code4rena can improve the experience for sponsors, wardens, and judges. We agree strongly with all of the areas of improvement Paradigm has identified, and we’re excited to have their expertise in helping Code4rena achieve our shared mission of making the web3 ecosystem more secure, whilst rewarding all contributors.

As such, we are pleased today to present the DAO with a proposal to make Paradigm part of the Code4rena community.

The terms of this proposal approves a sale of 15% of the total supply of $ARENA tokens, or 150,000,000 $ARENA, to Paradigm for $6,000,000 USDC. These funds are intended as working capital for the DAO in growing Code4rena. Access to the tokens will be set to unlock via a contractual lockup, with the same schedule used for the initial airdrop and others who have joined the DAO via token purchase. After a 1 year cliff, the remaining balance will unlock at the same rate as the initial institutional recipients.

If approved, this proposal would authorize the DAO to sell 150,000,000 $ARENA to Paradigm (or its affiliate entities). As Code4rena’s UNA Association Agreement requires specific authorizations of authority for members of the association to act on its behalf – passing this proposal authorizes, empowers and directs Code4 to prepare or cause to be prepared and to execute, deliver, verify, acknowledge, file, record or sign any documents, instruments, certificates, statements, papers, or any amendments thereto, as may be deemed necessary or advisable in order to effectuate the sale contemplated by this proposal.

About Paradigm

Founded in 2018, Paradigm is a crypto investment firm focused on supporting the crypto/Web3 companies of tomorrow. The team is a frequent research collaborator with its portfolio companies, such as Flashbots (e.g., codebase contributions here), Uniswap (e.g., co-authoring v3 here), and Optimism (e.g., codebase contributions here). You can learn more about Paradigm’s team here.