The Karrat Foundation is aware that there has been confusion amongst the community as to the role of the Foundation within the broader $KARRAT ecosystem, and what actions it can and cannot take, particularly with respect to the KARRATco.
This post seeks to clarify and provide additional information about the Foundation’s role and abilities.
Treasury Distinction
There are two separate treasuries:
- Administrative Budget Wallet: Includes all $KARRAT tokens in separate accounts governed directly by the Foundation for the specific purposes of operations, administration and growth of the ecosystem.
- KARRATco Treasury: Includes all $KARRAT tokens governed directly by the KARRATco and/or the Security Council of the Karrat Foundation via on-chain voting. The KARRATOco may direct usage of these treasury funds by introducing a non-constitutional KIP and voting to pass it via the process in the KARRATco Constitution.
Foundation Abilities
The Foundation exists to develop and grow the Karrat protocol and ecosystem. To accomplish this, the Bylaws and KARRATco Constitution grant the Foundation powers that allow it to take the following actions:
- Use of Administrative Budget Funds: The Foundation can make transactions using the funds in the Administrative Budget Wallet for operational costs, administrative costs and growing the ecosystem – including but not limited to entering into partnerships and paying service providers. The Administrative Budget Wallet is separate from the KARRATco Treasury funds governed by the KARRATco, which cannot be accessed by the Foundation unless authorized by the KARRATco, or through the Security Council in an emergency situation, such as a compromise of the KARRATco Treasury.
- Emergency Operations & Meetings: In case of emergency, the Foundation can mobilize emergency operations with the Security Council. This includes holding special emergency meetings to respond to imminent security threats for speed and efficiency. Once the crisis is over, a post-mortem detailing the emergency and actions taken to address such emergency may be published.
- Amendment Authority: Foundation Directors can make changes to the Bylaws if they think it will help them fulfill their duties to support the KARRAT ecosystem. However, these changes can not impact the rights and powers of KARRATco (detailed below) without the KARRATco passing a Constitutional KIP.
KARRATco Powers and Rights
As specified by the Constitution, by raising either Constitutional or Non-Constitutional KARRAT Improvement Proposals (KIPs), the KARRATco can:
- Make Protocol Upgrades: Modify the Karrat protocol functionality at the code-level.
- Modify the Constitution: Modify the text of the KARRATco Constitution
- Elect & Remove Security Council Members: Elect and remove members of the Security Council.
- Remove Directors or Supervisors: Remove directors and/or supervisors of the Foundation. However, the Foundation must always have at least one director and one supervisor to keep the lights on.
- Funding Projects: Propose and vote on the spending or allocation of funds from the KARRATco Treasury, including but not limited to entering into partnerships and making grants. The Karrat Foundation cannot touch these funds unless otherwise voted upon and approved by the KARRATco.
- Post PSAs: Propose new guidelines or information for the broader KARRAT community.