The MakerDAO community voted to establish a special fund, the Defense Fund, to cover legal defense costs, providing an emergency budget of 5 million DAI to cover legal defense costs in the event of legal or regulatory action against specific MakerDAO participants. Initially, coverage will be provided to Accredited Representatives, Core Unit Promoters, Core Unit Permanent Contributors, and active MKR holders. Legal proceedings against beneficiaries must be directly related to their activities with MakerDAO. The fund will be managed by an external technical committee of insurance and risk management experts, who will recommend whether to approve or deny payments based on applications.