Originally posted by NF legal team - Bianca
Q&A: Understanding the Legal Structure of the House of Stake (HoS)
What is the House of Stake (HoS)?
The House of Stake (HoS) is a decentralized governance structure and legal foundation designed to advance the NEAR Protocol and its ecosystem. Legally registered in the Cayman Islands, HoS operates as a foundation company that implements decisions made by NEAR tokenholders and enables long-term, sustainable growth of the protocol and its ecosystem.
HoS exists to:
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Support transparent and fair decentralized governance.
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Facilitate community-led decision-making through formal proposals and voting.
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Manage resources for ecosystem development, security, and operations.
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Act as a neutral legal wrapper that transforms community intent into executable actions.
At its core, HoS is about empowering the NEAR community to govern itself while maintaining legal compliance and operational efficiency.
What kinds of proposals can the community submit?
Community members who hold or are delegated governance tokens (veNEAR) can submit a variety of proposals, known as Grant Proposals (GPs). These include:
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Ecosystem Grants: Funding for projects, developers, or community initiatives.
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Governance Changes: Updates to bylaws, decision-making processes, or delegate responsibilities.
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Technology Upgrades: Approval of protocol changes or infrastructure improvements.
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Operational Budgets: Allocations from the Administrative Budget Wallet for core operations or grants.
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Delegate Issues: Raise concerns about delegate performance or propose their removal.
All proposals go through a formal process as defined in the House of Stake Proposals and Voting Procedures, and are subject to community Tokenholder Votes.
Why does HoS have a legal structure?
The legal structure exists to protect the mission and intent of HoS while providing the tools and safeguards needed for effective operations. Specifically, it ensures:
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Legal enforceability of community decisions.
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Accountability and transparency for those executing governance actions.
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Compliance with international law, especially fiduciary and financial regulations.
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A mechanism to respond swiftly to emergencies, such as security threats or protocol vulnerabilities.
In short, the legal wrapper allows HoS to transform decentralized will into real-world action, safely and effectively.
Who Are the Key Governance Bodies and What Do They Do?
1. Foundation Directors
The HoS foundation currently has one director.
Mandate:
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Manage the day-to-day business of the Foundation.
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Implement Tokenholder-approved proposals unless legally required to veto them.
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Authorize expenses and execute contracts.
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Ensure the Foundation complies with all applicable laws.
Appointment/Removal:
- Appointed and removed by Tokenholder Vote.
2. Supervisors
Mandate:
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Provide oversight of Foundation Directors.
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Review records, attend general meetings, and request reports.
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Ensure Directors are acting in the interest of the Foundation and the community.
Appointment/Removal:
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Appointed by Directors; required if the Foundation has no members.
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Removed by resignation, conflict of interest, or as outlined in their terms.
3. Security Council
Mandate:
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Handle on-chain security and integrity operations.
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Execute Emergency Actions (e.g. patching critical vulnerabilities).
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Approve Non-Emergency Actions like protocol upgrades (which must also be approved by Delegates).
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Veto proposals that do not align with HoS purpose.
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Call Emergency Meetings if needed.
Safeguards:
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Emergency Actions require a 75% supermajority vote of council members.
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All actions must be followed by transparency reports to the community.
Appointment/Removal:
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Defined in the House of Stake Proposals and Voting Procedures.
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Can be overridden or removed by a supermajority of Tokenholder Vote.
4. Screening Committee & Endorsed Delegates
Screening Committee Mandate:
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Elect Endorsed Delegates.
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Vet and pre-screen community proposals.
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Remove Delegates who fail to meet responsibilities or act against NEAR values.
Endorsed Delegates Mandate:
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Vote on proposals and justify their votes.
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Must participate in 80%+ of votes monthly.
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Help bridge community input and execution of governance.
Appointment/Removal:
- Delegates are elected by the Screening Committee based on the Call for Delegates Process.
How Does Community Voting Work?
The Tokenholders, using veNEAR, are at the heart of HoS governance. They can:
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Submit and vote on proposals (GPs).
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Approve or amend Bylaws and governance procedures.
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Appoint or remove Directors and veto Security Council actions.
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Raise concerns about delegates or governance matters.
Votes are binding unless a Foundation Director justifiably rejects a proposal due to:
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Violations of law or fiduciary duties.
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Conflict with Foundation Articles or Bylaws.
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Risk of legal or reputational harm.
What if something goes wrong?
To address urgent threats or governance conflicts:
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Emergency Meetings can be called by the Security Council or Directors.
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Directors may veto execution of a proposal if it conflicts with legal obligations, but must act transparently and responsibly.
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Disputes can be resolved through international arbitration in the Cayman Islands, rather than courts.
Can this structure be changed?
Yes. Most elements of the governance structure—like Bylaws, delegate rules, or even director compensation—can be amended by Tokenholder Vote. This ensures that the community retains ultimate control and can adapt the structure over time.
Want to Go Deeper?
For those who want to explore the full legal details, you can read the official governance documents below:
Summary: What Does This All Mean for Me?
The House of Stake exists to:
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Empower the NEAR community to lead.
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Translate community intent into legal and operational action.
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Ensure decisions are carried out safely, fairly, and transparently.
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Provide checks and balances between community, directors, and oversight bodies.
This legal framework doesn’t control the community—it’s here to protect your voice and make your collective decisions real.