Key Takeaways
- The restructuring proposal was passed with 90.13% of the vote
- According to the proposal, the DAO plans to have the new Secret Foundation up and running within 90 days of passage.
Privacy smart contract layer-1 blockchain Secret Network has voted to restructure its foundation as a nonprofit organization with a “transparent operation.” As per the announcement, the new foundation “will be registered as an NPO-nonprofit organization and also provide an annual account of its activities, including key performance indicators, budgets, and goals.”
The Network further added that the foundation would be run by a board made up of 3 or more community members. The restructuring proposal was passed with 90.13% of the vote. Reportedly, 9.87% of the DAO stayed away from voting, and no members voted against the restructuring proposal.
According to the proposal, the DAO plans to have the new Secret Foundation up and running within 90 days of passage. The restructuring proposal further points out that no single organization will be allowed to hold over two seats on the board.
The latest development follows a public clash between SCRT Labs and Secret Foundation executives. In January, Guy Zyskind, Secret Network’s founder, who also leads the development of the Network’s core technology as CEO of SCRT Labs, made a public allegation stating that the Secret Foundation’s founder, Tor Bair, made an undisclosed sale of the foundation funds and later directed some of the proceeds to himself as “dividend payment.”
Zyskind further mentioned a $4 million inflow for the foundation in its Q4 2021 report but did not mention the withdrawal. In response, Bair claimed that the withdrawn foundation tokens were owed to him under his SCRT vesting schedule. The feud has led to an increasing number of validators halting their services on the Secret Network.
Smart Stake, Kingnodes, Azul Collection, and Domerium Labs are some companies that have halted their services on the Network. Smart Stake cited “complex/stressful validator operations, cost/effort of validator ops, and recent events” as reasons for withdrawing its services from the Network.
Besides leadership concerns, validators have cited stricter operating requirements for validating the Network as a reason to stop validating. In November, Secret Network also faced a privacy-related vulnerability that rattled the validators.
