Creation of a Due Diligence Team (DDT) under the House of Stake Security Council
Purpose
To strengthen the integrity, transparency, and risk management of House of Stake operations, a Due Diligence Team (DDT) will be formed under the House of Stake Security Council.
The team’s primary responsibility is to independently review potential conflicts of interest (COI) and provide clear recommendations to the Security Council regarding proposal approvals, budget allocations, and any adjustments to governance flows.
Key Mission
- Identify and flag Conflicts of Interest (COI) in proposals, budgets, appointments, partnerships or grant requests.
- Verify the background and track record of proposers, advisors, vendors, or sub-DAOs linked to House of Stake operations.
- Prepare clear due diligence reports with actionable findings and submit these to the Security Council.
- Recommend actions: approve, reject, postpone, or adjust any given proposal if risks or governance gaps are detected.
Team Composition
The DDT shall consist of 3 members only, each bringing combined expertise from both sides:
- Proven practical experience inside the NEAR ecosystem — including governance, treasury processes, or community operations.
- Hands-on governance track record in at least one other major Web3 L1 or L2 ecosystem (e.g., Arbitrum, Optimism, Polygon, Cosmos).
This mix ensures every member understands NEAR’s specifics and broader industry best practices, providing balanced due diligence capacity.
Members must:
- Not hold any paid operational role that creates direct COI within the House of Stake or other conflicting entities.
Compensation
- These roles are not permanent paid positions.
- If additional tasks require deeper research or other checks, the Security Council may authorize discretionary payments for individual deliverables or expert reports.
- Budget allocations for such payments must be pre-approved by the House of Stake Security Council.
Core Responsibilities
- COI Audits: Screen all major proposals, budget requests, and critical operational partnerships for hidden ties, double spending, or self-dealing risks.
- Pre-Vote Reviews: Issue recommendations to the Security Council on whether a proposal is safe to advance to a vote or needs revision.
- Periodic Updates: Maintain a transparent log of checks performed, decisions made, and flagged concerns (where possible, respecting privacy or legal limits).
- Advisory Role: If needed, recommend procedural improvements to reduce future COI risks.
Basic Operating Procedures
- Proposal Screening:
- DDT receives all incoming proposals marked for Security Council review.
- Members divide initial fact-checks and COI scans by area of expertise.
- Fact Gathering:
- If required, DDT may request clarifications from proposers or connected parties.
- Additional background checks or ecosystem references may be collected.
- Draft Report:
- Findings are compiled into a short report with clear recommendations:
- Approve as-is
- Approve with changes
- Defer for more information
- Reject with reason.
- Council Submission:
- Reports are submitted to the Security Council for final decision.
- The Council publishes final approvals/rejections with minimal delay.
- Transparency:
- Where appropriate, reports (or sanitized summaries) are shared with the community for full accountability.
Term & Replacement
- Each DDT member renewable with Security Council consent.
- Members may be removed by a Security Council vote if conflicts or breaches are found.
- Vacancies are filled through the same nomination and vetting process by House of Stake Security Council .
Reporting Lines
- DDT reports directly to the House of Stake Security Council.
- Final decision-making authority remains with the Council, which may accept, amend, or reject DDT recommendations.
Open doc: 3. Creation an due diligince team (TTD) at House of Stake Securuty Council - Google Docs