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Koinos Federation Charter

V1.0 Ratified 10.26.2023

Note: This Charter was unanimously adopted by the Federation Council during its first meeting on October 26th 2023.

Highlighted items are due for discussion and possible amendment during the course of the first year of the Federation’s existence — these amendments and updates are excluded from the general procedure for updating or amending the Charter, as described in section 8.

Koinos Federation Officers 2023-24

 

1. Mission

The Koinos Federation exists to advocate for, and maintain the health of, the Koinos blockchain and ecosystem; to raise awareness of its unique benefits; and to support developers building on Koinos.

 

2. Ethos

While the Koinos blockchain was launched with maximum decentralization in mind, the realities of operating within a highly-centralized industry necessitate the formation of an entity to help coordinate some activities that are required to successfully grow the Koinos ecosystem.

Pragmatic decentralization is therefore the overriding philosophy of the Federation. It recognizes that certain activities within the blockchain and crypto industry require leadership. Among them we may count cohesive marketing; negotiations with centralized exchanges; creating contracts with market makers and other service providers; educating community members on governance proposals; encouraging developers with incentives and grants; and so on.

The Koinos Federation will strive to preserve the ethos of decentralization that has characterized the development of the Koinos blockchain, but will blend it with experienced and ethical community-focused leadership to ensure that the mission of the Koinos Federation is advanced.

It is the belief of the Federation that increased decentralization is the natural result of the dispersement of network resources, which happens through more participation in the network — by block producers, developers, users, and entrepreneurs alike. Therefore increasing network usage is a primary goal for the Federation.

As a community-focused organization, the Koinos Federation will be as transparent, and inclusive of community feedback, as is practicable.

The Koinos Federation is committed to diversity and inclusion in the Koinos ecosystem, and will not discriminate against any member or potential member based on their gender, race, ethnicity, age, disability, sexuality, language or geographical region.

 

3. The Koinos Federation Entity

CURRENTLY UNDER DISCUSSION WITH A CORPORATE ATTORNEY. 

 

4. Koinos Federation Mandate

The activities of the Federation may include, but may not be limited to, the following.

  • Create and maintain a repository of knowledge capital including brand materials, messaging, marketing support materials and other promotional and educational content for use by any member of the Federation.
  • Manage and train community mods in building out positive and productive social networks
  • Direct developers and entrepreneurs to complementary services and providers of services who can support them in their development efforts.
  • Reach out to service and infrastructure providers (such as exchanges, hardware wallet providers, market makers, influencers and news media) to secure integrations, listings, partnerships, promotional activities, news stories etc.
  • Promote community involvement in the various Koinos-specific social media and discussion groups, such as Twitter, Telegram, Discord, etc.
  • Help developers to share resources and libraries, and potentially accredit developers who demonstrate specific knowledge of the Koinos blockchain.
  • Develop and analyze governance proposals on the Koinos blockchain, and report findings and recommendations to the community.
  • Such other activities as are prudent and necessary in accordance with the mission of the Koinos Federation.

 

5. Koinos Federation Membership

The Koinos Federation 

An open organization that any community member may join at any time, which entitles them to access to discussion platforms, and provides other benefits as outlined by the Federation during its first year of existence.

The Koinos Federation Core 

The Koinos Federation Core has membership restrictions and conveys voting rights. Core members must apply through the Federation website, and applications will be reviewed by the Council’s membership director.

Eligibility for Core membership is restricted to:

  • Developers on the Koinos blockchain with at least one commit on GitHub over the last 12 months
  • Founders and co-founders of active projects building on the Koinos blockchain, with a maximum of three members from any one project
  • KOIN holders with a verified minimum deposit of 10,000 KOIN in a burn pool
  • Block Producers with a minimum production of (X) blocks over the past three months
  • Past and present members of the Koinos Federation Council

Membership is per calendar year, and refreshes on 1st January each year, at which time membership eligibility will be reviewed regardless of when the member was first accepted.

Core members will be invited to vote for Council members by secret ballot once per year. A process for this ballot will be established during the first year of the Federation’s existence. Core members will also have privileges to be decided during the first year of the Federation’s existence.

The Koinos Federation Council

The Council will consist of seven members, each of whom must be elected each year. Processes for electing members will be established during the first year of the Koinos Federation’s existence. In the first year of the Federation’s existence, Council members will be invited to participate by the Founder in consultation with key stakeholders, with invitations dependent on previous contributions to the Koinos ecosystem and with a view to bringing expertise across a variety of disciplines into the organization.

Council members will be unpaid volunteers and will sign an ethics statement.

Each Council member will have a specific role (President, Secretary, Treasurer, Community & Membership Relations Lead, Marketing Lead, Commercial Relations Lead, Developer Relations Lead). The specific duties of each role will be established during the first year of the Koinos Federation’s existence.

The Council will meet once per month at minimum, and ad hoc as necessary.

The Council’s responsibilities will include, but may not be limited to:

1. Attending monthly meetings. 

Quorum for Council meetings will be four of the seven Council members. When only four members of the Council are in attendance and are called on to vote on proposals during a meeting, the vote must be unanimous in order to pass any funding proposal.

  • When five members of the Council are in attendance and are called to vote on proposals during a meeting, a simple majority of the votes is required in order to pass any funding proposal.
  • When six members of the Council are in attendance and are called to vote on proposals during a meeting, a simple majority of the votes is required in order to pass any funding proposal. In the event of a tie, the President will act as tie-breaker.
  • When seven members of the Council are in attendance and are called to vote on proposals during a meeting, a simple majority of the votes is required in order to pass any funding proposal.

Any Council member who misses three meetings in a calendar year will not be eligible for election in subsequent years. Any Council member who misses three consecutive meetings will be replaced before the next meeting. A replacement will be nominated by any other member of the Council and the Council will appoint such a replacement after voting on the nominated candidates. In the event of a tie, the President will act as tie-breaker.

2. Reviewing proposals for fund allocations and voting to authorize or deny such proposals.

Council members will follow a three-step process in evaluating expenditures.

  • First, they will establish a quarterly budget based on the value and composition of the Koinos Federation treasury on the first day of each calendar quarter, with attention also to existing commitments and the expectations of future revenues.
  • Second, they will evaluate any proposal for funding based on whether it meets the eligibility criteria established in this charter. If a proposal does not meet eligibility criteria, it will not be considered further.
  • Third, they will evaluate eligible proposals based on their cost, their potential value to the Koinos ecosystem, their likelihood of success, and other criteria as established by the Koinos Federation during the first year of its existence. Proposals will then be voted on and if successful, funds will be transferred to recipients from the Koinos treasury promptly.

3. Reviewing governance proposals for the Koinos blockchain and presenting a Federation recommendation to the community on such proposals

The Koinos Federation Council will discuss governance proposals and their potential impact on the health of the blockchain and the overall Koinos ecosystem, and will vote on whether to support or recommend against such proposals. The Koinos Federation will communicate its deliberations and recommendations to the community via Telegram and Discord along with a brief summary of the rationale for the decision and any dissent from the majority vote.

In evaluating proposals created by third-parties, the Koinos Federation may lobby for its decision within the community and is not obliged to present opposing views.

4. Creating governance proposals for the Koinos blockchain and distributing information to the community regarding such proposals

The Koinos Federation Council may decide to create governance proposals that support its mission. The Koinos Federation will communicate its deliberations and recommendations on such proposals to the community via Telegram and Discord along with a detailed explanation of the rationale for the decision and any dissent from the majority vote.

In evaluating proposals created by the Federation itself, the Koinos Federation may lobby for its decision within the community, but should present its advocacy with as much context as possible, including presenting opposing views to the proposal.

5. Representing the Koinos ecosystem in public forums, at events, etc.

When deemed prudent and necessary by the Council, members may be encouraged to attend conferences, events, meetups etc. in person. Attendance costs incurred at such events may be reimbursed, and will be subject to prior approval and the submission of an event plan to the Council. 

6. Establishing community sub-committees to focus on areas such as marketing, community and developer relations, and open-source software.

When deemed prudent and necessary by the Council, the Council may instigate sub-committees to involve the community-at-large in wider efforts to further the Federation’s mission. Such sub-committees will report back to the Council at predetermined intervals, and the Council may specify requirements for membership, composition, and reporting.

Koinos Federation Council Ethics

All Federation Council members will sign an ethics statement that precludes them from voting on fund allocations that will result in personal financial benefit, or financial benefit to their immediate family, close associates, or personal business ventures.

The only exclusion to this rule will be that developers of active projects on the Koinos blockchain may vote on proposals that would result in grants to their legitimate business entity that further the development and health of the ecosystem and blockchain. In such cases, the Council member(s) concerned will inform the Council that such a relationship exists and that their business entity may benefit from such a proposal. Failure to do so will result in a vote of the other Council members on whether to expel the at-fault member from the Council.

 

6. Koinos Federation Treasury

It is anticipated that at some point in the existence of the Koinos Federation, the organization will be funded (either with KOIN tokens or fiat monies) and that it will be desirable, necessary, and prudent for the Foundation to build safeguards around the allocation of such funds.

a: Allocation of Funds

Per this Charter, the Koinos Foundation Council will only allocate funds for the following:

i. Exchange listing fees.

ii. Market making liquidity and fees to market makers.

iii. Grants to developers.

iv. Marketing and PR entities.

v. Legal expenses incurred by the Koinos Foundation or Council members as a direct result of activities pursuant to, and consistent with, their roles.

vi. Operational expenses such as accounting, banking, treasury management and custody, legal expenses in the ordinary course of business, and other such ordinary expenses.

vii. Reimbursement to Federation Council members or community members of eligible and documented expenses directly related to the official business of the Koinos Federation.

viii. Reasonable and documented expenses related to travel and representing the Koinos ecosystem at event attendance as deemed appropriate and necessary by the Council.

Detailed rules for these expenses will be established during the first year of the Koinos Federation’s existence.

During the first year the Council will also consider the pros and cons of a Koinos-focused event and decide on whether it represents a prudent use of funds.

Per this Charter, the Koinos Federation will never allocate funds for the following:

  1. Salaries or tokens for Council members.
  2. Salaries or tokens for any other community member except as described above.
  3. Funds to directly influence any Koinos blockchain governance vote. The impartial distribution of materials to educate the community on perceived pros and cons of such proposals will not be considered a breach of this duty.

b: Treasury Voting

The Koinos Federation is permanently enjoined from voting on governance proposals using its treasury tokens.

Given that any other policy regarding voting on governance proposals is utterly at odds with the ethos of decentralization and the mission of the Koinos Federation, any vote by the Council to reverse this policy will result in the immediate and permanent dissolution of the Koinos Federation, and the destruction of any KOIN tokens remaining in the treasury.

Council members will be required to specifically acknowledge and agree to this policy as a condition of appointment or election.

c: Treasury Custody

In the event that the Koinos Federation holds more than $150k in assets, it will partner with a licensed qualified custodian to safeguard assets. The Council will evaluate potential partners during its first year of operation.

d: Multisig Wallet

Once the Koinos Federation partners with a qualified custodian, it will receive cryptocurrency funds into, and allocate approved funds from, a multisig wallet that requires a 4-of-7 approval for outgoing transactions.

Operational details on the multisig wallet will be discussed and decided by the Council during its first year of operation.

 

7. Intellectual Property

Any and all materials developed by the Koinos Federation or the Koinos Federation Council during the course of their ordinary duties as officers will be considered open-source and freely available to the public. No member of the Koinos Federation Council will claim copyright or intellectual property rights over any materials created as part of their role as an officer of the Council.

 

8. Amendments and Updates

This Charter may be subject to amendments and updates, which will require that all seven of the Council members vote, and that a super-majority of five-of-seven votes are required to amend the Charter. In the event that a Council member is unable or unwilling to vote, they will be counted as a ‘no’ to any changes to this Charter.

The exception to this rule is described in section 6c on Treasury Voting above.

 

Formally and unanimously adopted by the Federation Council, 10.26.23.

 

Koinos Federation Officers 2023-24