Proposal for an Independent Review of the NEAR Community Purpose Trust

Ecosystem NDC
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Introduction

The NEAR Community, driven by Community Voice and exercising NEAR Consent, a mechanism for on-chain community decision-making, requests an independent legal review of the NEAR Foundation’s and the Enforcer’s actions regarding the termination of NDC V1 Governance within the NEAR Community Purpose Trust known as the (Community Treasury). This review will examine the termination of NDC V1 and the proposed transfer of funds donated by USN.

Background

  • Funding Challenges and the Need for NDC V1: The NEAR Community faced funding delays due to unclear governance processes and the NEAR Foundation’s shifting priorities. To address this, the NEAR Digital Collective (NDC) was launched by the NEAR Foundation and ecosystem nodes to establish a decentralized and community-driven funding model.

  • NDC V1 Achievements:Over nine months, NDC V1 funded over 100 projects and distributed approximately 400,000 NEAR to grassroots initiatives. Key governance frameworks were developed, and community-led working groups were established. This period proved effective, with demonstrable progress towards community-led funding and governance.

  • Termination of NDC V1: On April 25th, 2024, the Enforcer announced the sunsetting of NDC V1 Governance, pausing community funding. the latest update is that the Enforcer is awaiting instructions from the NEAR Foundation to transfer funds from the Community Treasury, raising concerns about the Foundation’s influence.

Concerns Regarding Fund Management

  • NEAR Foundation’s Unfulfilled Commitment: The NEAR Foundation has not transferred genesis funds initially allocated for community development to the Community Treasury, retaining control despite the Trust’s establishment. This lack of action contradicts the initial promise of community ownership and autonomy. A nominal 1 USDT was sent to settle the trust, highlighting the discrepancy between the promised transfer of funds and the reality of the situation.

  • USN Donation and Community Trust: NEAR in the Community Treasury was donated by USN during its wind-down, following guidance from the NEAR Foundation. These funds are now governed by the Community Trust.

NDC V1 and Election Manipulation

  • NDC Election Software: NDC V0, which included the development of the governance framework, Astra++ and election software to facilitate community governance, faced challenges with election manipulation through controlled accounts. To address this, eligible voter criteria was established.

  • Election Manipulation and Breach of Trust: Despite efforts to address manipulation, evidence suggests a coalition of ecosystem leaders planned a hostile takeover of the NDC, compromising the election’s integrity. This represents a serious breach of trust.

  • Strengthened Election Integrity: To prevent future manipulation, revised eligibility criteria should ensure elected representatives are demonstrably community-focused and possess relevant governance experience, including a proven track record of responsible fund allocation.

Initial Trust Period

  • Invoking the Initial Trust Period: Due to the compromised election, the “Initial Trust Period” was invoked to safeguard against potential misconduct and allow the community to address governance challenges. This period proved effective, with trustees approving most proposals after final review and updates, ensuring stability during a critical time.

  • Concerns about Actions: The actions of NEAR Foundation and the Enforcer, particularly the termination of NDC V1 and the proposed fund transfer, raise concerns.

  • Definition of “NEAR Community” and Community Rights: The trust instrument defines the “NEAR Community” as those with governance participation rights, establishing their right to participate in decisions regarding the Community Treasury. The NEAR Foundation’s actions raise questions about whether these rights are being respected.

Key Questions for the Independent Review

  1. Was NEAR Consent established during NDC V1? This determines whether the NEAR Foundation and the Enforcer acted within their authority when terminating NDC V1 Governance.

  2. What powers does the Trust grant to the NEAR Foundation or the Enforcer to terminate NEAR Consent? This clarifies the boundaries of their authority.

  3. What powers does the Trust provide for removing funds donated by USN? This addresses concerns about potential misappropriation and protects the Community Treasury.

Conclusion

The NDC V1 experiment and its subsequent termination offers several lessons for the NEAR community to consider as it strives for a truly decentralized and effective governance system:

  • Performance-Based Funding: NDC V1 demonstrated tangible results within nine months, contrasting sharply with other nodes that have received funding for years without demonstrable progress. This underscores the need for clear performance metrics and accountability in funding allocation.
  • Effective Governance Requires Expertise: The challenges faced highlight the critical need for experienced, community-aligned individuals with funding expertise to manage and oversee governance processes.
  • Decentralization is a Journey: The path towards decentralization is iterative and will inevitably involve challenges and setbacks. The NEAR community must embrace this reality, learn from its experiences, and continuously adapt to ensure long-term success.

Call to Action

The NEAR Community is at a crossroads. We urge all members to support this proposal for an independent review to ensure transparency and protect community interests.

Desired Outcomes

Through this independent review, the NEAR Community seeks to achieve the following:

  • Clarification of the legality and fairness of the NEAR Foundation’s and the Enforcer’s actions.
  • Clarification on the removal of funds donated by USN.
  • Establishment of a clear and transparent community funding process.
  • Facilitation of new elections with safeguards against manipulation.
  • Development of an updated governance framework.
  • Protection of the Community Treasury from undue influence.
  • Appointment of a new Enforcer and Trustees who will act independently in the best interests of the NEAR Community.

Poll

Do you support this proposal for an independent review of the NEAR Community Purpose Trust?

  • Yes
  • No
0 voters

Note: this proposal will be moved to an onchain NEAR Consent vote with enough support.

2 Likes
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As an external observer, it has been interesting to witness how members of CoA, such as Sasha from Near Learn Club or Frol from Debhub, speak about transparency and reporting, while simultaneously becoming the ultimate beneficiaries of the NDC’s collapse. They are now receiving unlimited grants from the Near Foundation as a reward. DevHub has effectively become an unlimited cash dispenser. Another of Frol’s projects, the Events Committee, approves funds exclusively for themselves and their close associates from HOT, who deceived the community by selling cold wallets without delivering them.

It is time to bring order to DevHub and the Events Committee, which spend significant sums on themselves. Recently, they rented a villa for $16,000 app by events-committee.near | Near Social.

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Thank you @blaze for this proposal.
Hope to see this review soon

Tagging :@frol @sasha