Since the first iteration of Protocol Cover launched, both the community and Foundation + DAO teams have identified areas for revision and improvement to the existing Protocol Cover wording v1.0. Those comments have been collected and applied to the proposed Protocol Cover wording v2.0, which provides more clarity to both cover buyers and claims assessors.
This NMPIP will be open for review from 21 June until 9 July.
In 2021, Hugh first proposed updating Smart Contract Cover v1.3 in the Protocol Cover (new cover wording) post on the forum. After receiving feedback, this was then moved to an on-chain vote, where members approved the more comprehensive Protocol Cover to take effect.
Since the launch in 2021, there have been five (5) loss events where members voted to approve and pay claims. There were also a few claims that were submitted, which were not covered. From those claims events and feedback from members, the Foundation and DAO teams identified areas for improvement and clarification.
You can find a more detailed review of past loss events that were covered, the proposed improvements, and a summary of the changes to the Protocol Cover wording from v1 to v2 in the [RFC]: Update Protocol Cover wording post on the governance forum.
If this proposal were to pass in an on-chain vote, the following steps would be taken to update Protocol Cover wording.
Updating Protocol Cover wording to v2.0 on IPFS, so Protocol Cover wording v2.0 is the default for any Protocol Cover products purchased after the update
Update Terms and Conditions in the Nexus Mutual UI on the Quote page to reflect the new protections, exclusions, and claims filing information.
Issue notice on the governance forum, where we indicate that covers purchased after Block X include the updated protections in Protocol Cover wording v2.0
Existing Protocol Covers purchased before the update is approved via on-chain governance will still include the v1.0 protections until they expire or are renewed
Update the Claims Assessment UI questions to reflect the updated Protocol Cover wording v2.0.
This proposal will be on the forum for review and comment until Monday (10 July), at which time it will be put to an on-chain vote. Previously, this proposal was posted as an RFC on the forum for 18 days, after which time it was moved to a formal NMPIP.
This NMPIP has been transitioned to an on-chain vote, which is open for voting from Wednesday (12 July) until Saturday (15 July).
After the three-day voting period ended, members unanimously voted to upgrade Protocol Cover wording v1.0 to Protocol Cover wording v2.0.