# DAO Grant Engine (DGE) - Negative D-Points (Behavioral Risk)

While the D-Points System primarily tracks technical progress, the **Negative D-Points** mechanism is crucial for enforcing professional conduct, transparency, and the DAO's ethos of creating a "civil, tight niche community." Penalties are applied only after a formal **DAO Complaint & Review** process.

### 1. D-Points Loss - Behavioral Risk Categories

These penalties are designed to discourage malpractice and ensure all builders remain cooperative and respectful within the ecosystem.

| Category                 | Triggering Action                                                                                     | Penalty (D-Points)              | Consequences & Review Process                                                             |
| ------------------------ | ----------------------------------------------------------------------------------------------------- | ------------------------------- | ----------------------------------------------------------------------------------------- |
| **Technical Integrity**  | Detected malicious code injection, backdoors, or evidence of fraud.                                   | **-75** (Immediate Floor Check) | Governance vote on immediate bond liquidation and permanent ban. **Zero Tolerance.**      |
|                          | Major undisclosed security flaw found after code submission.                                          | **-40**                         | DAO Security Committee review and required 7-day fix window.                              |
|                          | Repeatedly submitting non-functional code or failing basic QA tests.                                  | **-20**                         | Technical Review Board arbitration. Penalty can be reversed upon successful resubmission. |
| **Community Conduct**    | Proven malicious intent or sustained disruptive/toxic behavior towards other builders or DAO members. | **-30**                         | DAO Mediation and Ethics Committee vote. Required public apology and corrective action.   |
|                          | Public communication that significantly damages the reputation of the DGE ecosystem.                  | **-15**                         | DAO Marketing & Comms Committee review and mandatory public statement retraction.         |
| **Transparency & Audit** | Failure to provide requested access or data during a scheduled DAO audit.                             | **-25**                         | Immediate tranche freeze until full compliance is met.                                    |
|                          | Misrepresentation of progress or documented falsification of milestone reports.                       | **-50**                         | Governance vote on bond liquidation and 12-month exclusion from the DGE.                  |

### 2. Enforcement Principle: The Mediation Period

For all non-malicious conduct penalties (e.g., poor QA, community disruption, audit delay), the builder is given a formal **Warning** and a **7-day window** to enter mediation or provide a corrective plan before the D-Points are permanently deducted. The goal is correction and education, not immediate punishment.

### 3. The Builder Bond as Behavioral Collateral

The Builder Bond ($\\$300$) acts as a strong incentive for positive behavior. Any single instance of **Technical Integrity** failure (malicious code/fraud) is sufficient grounds for an immediate bond liquidation, independent of the D-Metric score, reflecting the high cost of trust failure in a decentralized system.
