Redirect Community pool to SNF

Secret Governance
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Proposal: Redirecting the 2% Community Pool Tax to the Secret Network Foundation

Summary

This proposal aims to redirect the 2% tax currently allocated to the Secret Network community pool, along with the existing ~1M SCRT balance, to the Secret Network Foundation (SNF). Over the past 12 months, the community pool has mainly funded a few initiatives, specifically the testnet committee, support initiatives, and two Hack Secrets, all of which are now managed by SNF. Redirecting the funds to SNF, with its streamlined management processes, will ensure that resources are consistently directed toward advancing network development.

Implementation Plan

  • Tax Allocation Adjustment: Modify the current tax allocation mechanism so that the 2% tax, previously directed to the community pool, is rerouted to SNF.
  • Balance Transfer: Transfer the existing ~1M SCRT balance currently held in the community pool to SNF for ongoing use in network growth and development initiatives.

Addressing Concerns

  • Decentralization Considerations: While some community members may view this shift as reducing decentralized control, SNF’s transparent processes and community engagement mechanisms ensure ongoing participation and oversight.
  • Alternative Approaches: Although some may propose reducing or eliminating the tax altogether, this proposal maintains network funding while ensuring more active and efficient utilization through SNF.

Conclusion

Redirecting the 2% tax and the existing community pool balance to the Secret Network Foundation ensures that funds are actively deployed to support the ongoing growth and sustainability of the Secret Network ecosystem. This proposal reflects the current operational realities and aligns funding with strategic priorities. We invite the community to support this initiative for a more focused and effective management model.

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Does SNF have a grants program? That would be my only concern about eliminating the community pool.

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yes, there are plans to offer small grants for things the community pool may have covered in the past

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was there any other questions, comments, concerns or feedback regarding this? if not then we will be moving forward and putting this on chain soon-ish

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Hi All - as @MrGarbonzo mentioned, we’ve now had a month for discussion on this topic.

The question was raised about whether the pool would be funding grants, and the answer is that SNF is planning to continue to fund grants on an ongoing basis for the community. These are meant to be smaller grants for experimental purposes, rather than commercialized products.

Otherwise, the pool will be used to fund testnet, support, and other essential utilities for the network, most of which have already been moved from community support to SNF funded.

We discussed this topic at the last community meeting which was held as a group call on telegram. I proposed another discussion if there were questions, which there haven’t been to date.

So here’s a heads up that the proposal will go on chain tomorrow!

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Everyone looking at this proposal should consider this reality check for a moment: Lisa has represented Secret Network across Forbes, CNN, TheStreet.com, Yahoo Finance, NBC News, Coindesk TV, and numerous other publications. She brought Phala and other partners to the table for DECC, secured the Messari report on DECC, and obtained speaking opportunities at conferences that kept Secret in relevant. Secret Labs isn’t capable of doing any of this without SNF.

I’m not particularly bullish on things today, but if the community allows SNF to run out of funding, we’re about to discover what Secret looks like with zero visibility and SLABS handling communications alone. Currently, SNF has roughly 6 months of runway remaining…. and that’s with SLABS subsidizing them and assuming SCRT maintains at least $0.20. Lisa will not dispute any of this….

I’ve also heard Shade Protocol wants the entire pool, as others have heard, but if that’s what happens let’s call this what it is…. Shade is currently the most successful app on the network, but they aren’t in an excellent position either. Their protocol revenue doesn’t even bring in enough to support a decent size full time dev team, this would just artificially increase TVL which doesn’t keep secret relevant in any conferences or TEE / Privacy discussions. It does slightly bump secrets TVL but what does that matter if Secret itself lowers SNF runway by not supporting SNF? TVL didn’t help secrets price during surge, and such a small bump is highly unlikely to do anything for secret. So that play just hands some of the final resources to a 3rd party, none of which will look good for Carter or shades reputation once SNF runs out of funds.

Everyone can make their own decisions here, but carefully consider how you want to play what may be the final hand of cards. If SNF runs out of funds, Secret Network will effectively vanish.

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