Blockchain security platform Immunefi has unveiled Vaults, a novel bug bounty system enabling developers to securely deposit and allocate funds to an on-chain address.

The funds serve as rewards for ethical hackers who identify vulnerabilities within the software.

According to Immunefi, the initiative aims to attract high-quality bug reports and underscore the developers' unwavering commitment to address potential security concerns.

Funds designated for bug bounties find their safety within a Safe multisig smart contract, delivering indisputable on-chain verification of fund availability.

Once a bug submission undergoes validation, developers can promptly disburse the reward to the responsible hacker.

Prominent proponents of this novel approach include Ethereum infrastructure provider SSV and decentralized exchange Ref Finance.

Immunefi's track record shows $66 million in bug bounty payouts facilitated since its inception.