@robert, thanks for the post and putting this detail together. I will try and keep my response as succinct as possible.
- I disagree on the framing that the mutual has the ability to pay partial claims. This is an extreme interpretation of a very technical workaround that breaks all existing workflows and requires coordination with every claimant and all claims assessors before any claims are submitted.
- Armor (and other stakers) have benefited from not paying claims under the 20% threshold in the past, so there are two sides to this argument. You can’t have it both ways.
- Nexus V2 is close, so any precedent set by agreeing to any one-off reimbursement will be limited.
- It’s unclear at this stage if the claimant is willing to refund any of the claim amount and/or if Fei will reimburse users.
Overall, I see both sides of the argument here and as such I am open to partial reimbursement of burnt NXM for all impacted stakers on Rari after the situation with the claimant and any potential reimbursement from Fei is finalised.
Using Armor as an example, but noting this should apply to all Rari stakers:
- Armor’s extra burn is approx 44,000 NXM
- Use any reimbursement from the claimant and/or Fei to purchase wXNM on market and refund stakers, including Armor, proportionally. For the sake of argument, say this amounts to a 20,000 NXM refund for Armor. (Note: this could be zero)
- Use the Community Fund to refund some portion of the remaining amount, eg 50%. So in this example 24,000 NXM extra burn remains after reimbursement so 12,000 NXM could be paid from the Community Fund.
I think the Community Fund refund proportion (the 50% suggested) should be discussed after understanding the situation with the claimant and Fei.