Wu says it has learned that Ethereum researcher Leo Glisic proposed and open-sourced an on-chain privacy solution called Privacy Guardians, aiming to establish a priced mechanism between regulatory compliance and user privacy. The proposal requires “privacy guardians” to take on at least 15% of the insurance pool funds, and additionally stake “honeypot” funds equal to 5% of the insurance pool. If a third party can prove it possesses users’ transaction data, it can receive the honeypot rewards and automatically trigger the insurance pool to compensate users. Guardians can view transactions, cooperate with lawful investigations, and execute account freezes, but do not custody users’ funds.