Vault Charter V2.1

[Sam]

To be proposed in upcoming governance vote.

Fantom Ecosystem Vault –

Governance Charter v2.1

Mission

To allow the Fantom community to efficiently and transparently distribute any assets collected in the Ecosystem Vault amongst successful projects that the community determines most deserving.

Background

1. On 3 October 2022, a Network Governance Vote resolved to establish the Fantom Ecosystem Vault (the Vault) on the basis of an earlier forum post on the subject.
2. On 19 January 2023, Fantom launched the Vault, which collects 10% of all transaction fees paid to the Network, which is distributed by the Special Fee Contract (SFC) to the Vault wallet 0xb21b972B2aA69a01C6f7e6C19717126C7cD7559F, accessible at https://vault.fantom.network (Vault Assets).
3. The Vault Assets are to be directed under the terms of this Charter. (Once approved via governance)

Charter’s Purpose

This Charter aims to:

1. Replace and update the rules established by a governance vote dated 3 October 2022;
2. Establish new rules under the terms proposed in this Charter;
3. Establish the process by which Vault Assets are distributed to project applicants; and
4. Establish any eligibility requirements for such projects.

General Provisions

5. This Charter and related governance cite substitutes prior terms as described in Ecosystem Support Vault as adopted on to Governance Vote of 3 October 2022. To the extent this Charter, once passed by a Governance Vote, contradicts any prior Governance Votes passed or publications made relating to the Vault, this Charter shall prevail.
6. Unless specified otherwise, all references to a “Governance Vote” are taken as resolved if they received at least a 55% participation of the votes, from a cast of at least 55% of eligible governance votes.

Vault Assets

7. Until a further Governance Vote to the contrary, 10% of all transaction fees paid to the network will be distributed via the Vault Wallet, Accessible here https://vault.fantom.network.
8. A Wallet Steward (described below) will be appointed by the Fantom Foundation, at the sole discretion of the Board, to be bound by the terms of this charter.
9. Vault Assets will be managed and distributed by the Wallet Steward on the terms of this Charter.
10. Once per quarter, the Wallet Steward will distribute the Vault Assets to the Gitcoin Grants program, utilising a decentralised quadratic-funding model, as further described in Gitcoin Grants - Fantom (Grant Program).

Terms

11. The Wallet Steward will review all proposals submitted to the Vault in good faith and with no undue influence from anyone and determine their suitability for approval.
12. The Wallet Steward shall distribute vault assets on a quarterly basis, commencing no later than 3 months post governance approval and be authorised to distribute pro-rata to the as recommended by the Grants Program quadratic funding model. Any other distribution ratio or distribution to a Vault Project would require a Governance Vote.
13. The Wallet Steward may establish procedures and require Project Applicants to submit to appropriate AML/KYC identification and vetting process requirements for applicants and which the Wallet Steward will undertake in ensuring that such applicants are suitable and compliant from an AML/KYC perspective, prior to the approval of any applications for Vault Projects.
14. All Grant Program recipients must first acknowledge they accept the following terms and conditions available on Fantom Foundation’s website:

• Important Notice
• Terms and Conditions
• Supplemental Wallet Terms
• Privacy Notice

The Wallet Steward

15. The function of the Wallet Steward is to ensure the legal and ethical allocation of resources of the Vault and to carry out the duties under this Charter.
16. The Wallet Steward is authorised to do all things necessary, to prevent payments or halt payments to a project or wallet suspected of fraudulent, illegal or sanctioned user activity. The Wallet Steward, at their sole discretion, may withhold any payment approved under this Charter where they reasonably suspect a Vault Project Applicant has engaged in fraud, illegality or deception through this process or otherwise.
17. The Wallet Steward will be charged with ensuring that Vault Assets are not used for any illegal activities or improper purposes, including those that may harm the reputation of the Network or of Fantom.
18. The Wallet Steward will be fully indemnified from Vault Assets where they are held liable or suffer damage arising from their honest administration of the Vault. Where Vault Assets are insufficient for such indemnification, Fantom Foundation will consecutively and directly indemnify the Wallet Steward.
19. The Wallet Steward shall have sole responsibility for the management and control of the Vault wallet keys and for approving any transactions under the terms of this Charter.
20. The Wallet Steward is authorised to use multi-sig, MPC or other wallet technology, to delegate up to 2 of 3 keys as they see fit, and to do all things necessary to ensure continuity of the Vault wallet management in case of their death or incapacitation.

Jurisdiction and Dispute Resolution

21. This Charter, its subject matters including the voting processes and applications and the formation of the Vault is governed by the laws of the Cayman Islands.
22. All disputes arising out of or relating to this Charter, including but not limited to any question regarding its existence, validity, interpretation, performance, breach, termination or any other matter related thereto, shall be resolved by binding arbitration in accordance with the Rules of the Cayman Islands International Arbitration Centre (the Rules) by a single arbitrator appointed in accordance with the Rules. The seat of the arbitration shall be the Cayman Islands. The language of the arbitration shall be English.