# Community Spend to Enable Secret Foundation Pool

**URL:** <https://forum.scrt.network/t/community-spend-to-enable-secret-foundation-pool/2009>\
**Category:** Secret Governance\
**Created:** [August 26, 2020, 7:50pm UTC](https://forum.scrt.network/t/community-spend-to-enable-secret-foundation-pool/2009 "2020-08-26T19:50:02Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![jlwaugh](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.scrt.network/jlwaugh/32/405_2.png) [@jlwaugh](https://forum.scrt.network/u/jlwaugh)\
**Post date:** [August 26, 2020, 7:50pm UTC](https://forum.scrt.network/t/community-spend-to-enable-secret-foundation-pool/2009/1 "2020-08-26T19:50:02Z")

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## Enabling Secret Foundation Pool

This off-chain community spend proposal requests 5000 SCRT for [Alexander Bezobchuk](https://github.com/alexanderbez), lead software engineer at Tendermint, who is adding functionality to Secret Network’s version of Cosmos SDK in order to enable a new tax on the inflation going directly to a configurable address belonging to Secret Foundation. Our agreement is the project will be done before the voting period of this proposal is complete. Here is the [work in progress](https://github.com/enigmampc/cosmos-sdk/pull/1).

Following these [best practices](https://github.com/gavinly/CosmosCommunitySpend/blob/master/bestpractices.md) created by Gavin Birch of Figment and the Cosmos Hub Governance Working Group, Secret Foundation is effectively submitting this proposal on behalf of Alex (a.k.a. Bez). We humbly ask our community to consider this proposal separately from the decision to implement a [Secret Foundation pool](https://puzzle.report/secret/chains/secret-1/governance/proposals/18). Either way, Bez will make this possible, and our team hopes it can be a good example of using the community pool responsibly.

Currently, the native distribution module within the Cosmos SDK contains support for a built-in community tax (tunable with `ParamChangeProposal`) distributed to a community pool. The main purpose of this community pool is to decentralize control of a budget, which is available to fund projects in our ecosystem. In addition to this model, our community agreed to a Secret Foundation tax (starting at 15 percent of inflation) going to the Secret Foundation pool.

Enabling a neutral ground is a huge step forward in pursuit of sustainability for Secret Network, and the Foundation will continue working with our community to coordinate participants, develop better systems for collaboration, drive growth, and reward valuable contributors. Of course, the Secret Foundation Tax is governable. `SecretFoundationTaxProposal` is defined as follows:

```auto
type SecretFoundationTaxProposal struct {

Tax sdk.Dec

Address sdk.AccAddress

}

```

This proposal type will be used to change the tax rate and/or the recipient address. If the `Tax` is 0 percent, we consider the Foundation tax to be disabled. The trusting of the `AccAddress` is done and verified out-of-band.

Generally, this approach solves the problem of inefficiency with respect to decentralized governance. Our intention is to help anyone and everyone get involved and earn from value shared. To do that, we need strong leadership and focused efforts to achieve specific goals.

Thank you, Bez! After considering any feedback here, Secret Foundation is planning to submit this proposal to Secret Network using the [on-chain governance module](https://build.scrt.network/protocol/governance.html) 🗳

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<div class="post-metadata">

**Author:** ![tor](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.scrt.network/tor/32/503_2.png) [@tor](https://forum.scrt.network/u/tor)\
**Post date:** [August 27, 2020, 2:15am UTC](https://forum.scrt.network/t/community-spend-to-enable-secret-foundation-pool/2009/2 "2020-08-27T02:15:35Z")

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Thanks for posting this @jlwaugh! I consider this proposal to be a great reflection of best practices and I look forward to its introduction on mainnet.

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**Author:** ![Brendan](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.scrt.network/brendan/32/1562_2.png) [@Brendan](https://forum.scrt.network/u/Brendan)\
**Post date:** [August 27, 2020, 3:30pm UTC](https://forum.scrt.network/t/community-spend-to-enable-secret-foundation-pool/2009/3 "2020-08-27T15:30:12Z")

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Agree 100% with this proposal 👍

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<div class="post-metadata">

**Author:** ![can](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.scrt.network/can/32/596_2.png) [@can](https://forum.scrt.network/u/can)\
**Post date:** [August 28, 2020, 9:26pm UTC](https://forum.scrt.network/t/community-spend-to-enable-secret-foundation-pool/2009/4 "2020-08-28T21:26:32Z")

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Looking forward to have the module to fund the Secret Foundation functional and be ready for the secret contract mainnet upgrade!

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<div class="post-metadata">

**Author:** ![laura](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.scrt.network/laura/32/911_2.png) [@laura](https://forum.scrt.network/u/laura)\
**Post date:** [September 1, 2020, 9:13pm UTC](https://forum.scrt.network/t/community-spend-to-enable-secret-foundation-pool/2009/5 "2020-09-01T21:13:10Z")

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I support this proposal!

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<div class="post-metadata">

**Author:** ![jlwaugh](https://yyz1.discourse-cdn.com/flex035/user_avatar/forum.scrt.network/jlwaugh/32/405_2.png) [@jlwaugh](https://forum.scrt.network/u/jlwaugh)\
**Post date:** [September 2, 2020, 2:03pm UTC](https://forum.scrt.network/t/community-spend-to-enable-secret-foundation-pool/2009/6 "2020-09-02T14:03:58Z")

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Hi everyone 🌊

The above proposal has been submitted to the network with a few slight modifications. You can read the final version [here](https://explorer.cashmaney.com/proposals/20). **Importantly, the funding recipient and requested amount did not change, plus the work is now finished.** Our community is deciding whether to pay [Alexander Bezobchuk](https://github.com/alexanderbez) (a.k.a Bez) 5000 SCRT for enabling the Secret Foundation pool.

### Context

This [on-chain proposal](https://puzzle.report/secret/chains/secret-1/governance/proposals/18) was approved unanimously (65% of voting power) on August 18, signaling our need to implement some way to distribute block rewards as a "Foundation tax.” Once mainnet has been successfully upgraded, a configurable SCRT address owned by Secret Foundation will receive 15 percent of inflation to fund critical operations.

> [@Secret Foundation Signal Proposal](https://forum.scrt.network/t/secret-foundation-signal-proposal/1959):
>
> Hi all, I am following up from a previous thread to share that the Secret Foundation has made an on-chain signaling proposal concerning the self-sustainability of the foundation and updating the community on our progress. Thanks to [Secretnodes.org](http://Secretnodes.org) for their assistance in submitting this. [https://puzzle.report/secret/chains/secret-1/governance/proposals/18](https://puzzle.report/secret/chains/secret-1/governance/proposals/18) The text: Launched earlier this year by former Enigma Head of Growth Tor Bair, Secret Foundation is dedicated to building, researching, and…

TIL embedded links don’t work in the proposal description field 🤦‍♂️ So, I’m sharing the [on-chain proposal](https://puzzle.report/secret/chains/secret-1/governance/proposals/20) here and elaborating on a few points. All the links that were supposed to be included can be found in the “off-chain” proposal at the beginning of this thread.

Bez’s pull request for adding required functionality is merged. You can review it here:

> <https://github.com/scrtlabs/cosmos-sdk/pull/1>
>
> \## Description
> 
> Modification of \`x/distribution\` based off of rough proposal o…utlined \[here\](https://gist.github.com/alexanderbez/190884c73ffcd99e6d5786d6f32c0b5a) which introduces support for a secret foundation tax and governance proposal.
> 
> TODO:
> 
> \- \[x\] Genesis updates
> \- \[x\] Proposal type w/ handler
> \- \[x\] Allocation updates
> \- \[x\] tests & simulations
> \- \[x\] CLI and REST handlers for getting secret foundation tax and address
> 
> \---
> 
> Before we can merge this PR, please make sure that all the following items have been
> checked off. If any of the checklist items are not applicable, please leave them but
> write a little note why.
> 
> \- \[\] Targeted PR against correct branch (see \[CONTRIBUTING.md\](https://github.com/cosmos/cosmos-sdk/blob/master/CONTRIBUTING.md#pr-targeting))
> \- \[\] Linked to Github issue with discussion and accepted design OR link to spec that describes this work.
> \- \[\] Code follows the \[module structure standards\](https://github.com/cosmos/cosmos-sdk/blob/master/docs/building-modules/structure.md).
> \- \[\] Wrote unit and integration \[tests\](https://github.com/cosmos/cosmos-sdk/blob/master/CONTRIBUTING.md#testing)
> \- \[\] Updated relevant documentation (\`docs/\`) or specification (\`x/\<module\>/spec/\`)
> \- \[\] Added relevant \`godoc\` \[comments\](https://blog.golang.org/godoc-documenting-go-code).
> \- \[\] Added a relevant changelog entry to the \`Unreleased\` section in \`CHANGELOG.md\`
> \- \[\] Re-reviewed \`Files changed\` in the Github PR explorer
> \- \[\] Review \`Codecov Report\` in the comment section below once CI passes

Main difference between the off-chain and off-chain proposals: there won’t be a new proposal type for governing the Secret Foundation pool. Instead, users can submit and vote on `x/distribution` parameter-change proposals in order to change the tax rate or the recipient address.

Let us know if you have any questions 🙂

Your support is much appreciated!