The decentralized autonomous organization that governs the privacy-focused blockchain Secret Network has voted to restructure its foundation as a “transparently operated” nonprofit, according to the official page for the proposal.
Congratulations to the #SecretNetwork community! The Secret Foundation has been restructured as an NPO, with a community-elected board & amendments requested by the founder. #blockchain #cryptocurrency
— Krypton AI (@KryptonAi) February 10, 2023
The proposal establishes that the new foundation “will register as an NPO [organización sin fines de lucro] and will provide an annual account of its activities, including key performance indicators (KPIs), budgets and targets.” The foundation will be directed by a board of trustees made up of three or more members of the community. According to the proposal, no organization may occupy more than two positions on the board of trustees.
It was approved with 90.13% of the votes. 9.87% of the DAO abstained in the vote, and no member voted against the proposal.
The approval came after a public dispute broke out between SCRT Labs and the Secret Foundation, two different organizations that support the Secret Network. On January 14, Guy Zyskind, CEO of SCRT Labs, accused Tor Bair, CEO of Secret Foundation, of cashing in SCRT tokens as a dividend paid to himself and failing to disclose the transaction.
Bair denied the accusation, saying the dividends were part of his regular salary and were disclosed as required. Still, Bair agreed that the foundation needed to be more transparent:
“I have privately and publicly communicated on multiple occasions my desire to be part of that change, which could include restructuring the Foundation entity, closer support for the Secret Agency, the establishment of a worldwide board of trustees, or other next steps. We strongly support this pathway and look forward to working closely with other actors in the network.”
Despite Bair’s public support for a restructuring plan, one of the Secret Network’s main backers announced on January 30 that it was shutting down due to “recent events” and other issues.
The restructuring proposal was created on February 2. Voting began immediately and continued for seven days. Under the proposal, the DAO intends to have the new Secret Foundation operational within 90 days of its approval.
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