Microsoft used to pay 20k for exploit primitives that could potentially lead privilege escalation. These days the bounty program seem to require a demonstration (read: working exploit).
Zerodium offers up to 80k for a working local privilege escalation exploit. Depending on the workings, if that exploit can be used to break out of a browser sandbox you might earn a bonus.
The whitehat bounties are not market rate, if you only look at the monetary rewards.
Maybe that's mitigated because people with the know-how to find exploits like that are usually well-educated and not desperately in need of money, but people can be greedy.
Though if as a corp you cover the black market rate fully then there's really no reason for a researcher to ever sell on the black market.
But this problem is not there with all avenues for grey market transactions.
For context, this is approximately what Google has to pay for an entry level engineer employee to work for ~40 hours.
Finding a bug of this severity level in a publicly accessible service with a bug bounty program every 40 hours of work is... a stretch of the imagination for an entry level person.
The author should "charge" based on a percentage of the value that this bug fix gives to google. I'd argue that for such a huge platform this bug is worth tens if not hundreds of thousands. Certainly would cause way more reputational damage than that of there was a large-scale data leak based on this.
As the music industry learned the hard way, if you make it too hard to be a good guy, everyone will become a bad guy.
I certainly don't see room for adding regulatory requirements here. And, about public pressure, this type of work is in its infancy, relatively speaking. Going straight for the throat is too much.
I don't mean that the US would chase you in Russia but you are digging yourself a hole and limiting options as you go.
Most companies are exploiting security researchers and pay them bounties that could be compared to the discounts found on Fiverr for different services.
5000 dollars is akin to to a very healthy contractor rate of $200 an hour at 25 hours of work, which is a conservative estimate of how much time OP spent discovering this. That to me feels pretty fair pay, based on things in reality, not some future value of potential costs savings that require some pretty hand-wavy maths to quantify.
* experts are paid for applying their knowledge, not their time[1][2]
* A “fair” time based system should also pay for unsuccessful searches e.g. the previous month unsuccessfully searching for a bug in Chrome.
* if person A spends 1 hour finding bug X, and person B spends 1000 hours finding exactly the same bug X, then it is a fallacy that you could pick a fair hourly rate.
Also I’ll mention that you don’t get paid according to how much damage a bug can cause. 1: usually the damages occur to a third party (e.g. users of Microsoft Windows, not Microsoft). 2: imagine you find ten bugs that could wipe out the business Acme - you can’t get paid 10x Acme’s value (not even just 1x Acme’s profits.)
The fact that a company has undervalued this work and failed to identify it as important, and someone external has identified it, makes it worth even more.
A ransom demand on YouTube might be unbounded in value, e.g.: https://www.lexology.com/library/detail.aspx?g=e4d1be15-18db...
For brilliant hackers in other parts of the world, then this might be a nice job. But I don't know if these bug bounties are available everywhere.
Last month on HN someone got £7500 from FB, but, everyone thought he should have got more: https://news.ycombinator.com/item?id=25401294
There is also a darknet diaries episode (can't remember which) but the guy who found a bug had got into instagram s3 buckets and source code, he felt he should have got the $1M bug bounty but instead facebook claimed he did it without permission to go further and got fuck all.
By the same logic, blind SQLi will typically be valued 'less' (hence pay out less) than SQLi with output.
But I do wonder if it would be possible to set up a legal alternative. I suspect if you did you would find law makers lobbied to make it illegal and it would already be decided as unethical by the corporate designed ethics systems.