Dear Karrat Foundation Members,
I am writing to express serious concerns about the way the Karrat Foundation has been operating, particularly regarding transparency and adherence to the Karrat Constitution and bylaws. Over the past eight months, the lack of a comprehensive transparency report and the absence of clear communication regarding key issues have left many in the community questioning whether the Foundation is acting in the best interests of the DAO.
Specifically:
- Transparency on Salaries and Fund Usage: To this day, Karrat holders have no insight into Foundation members’ salaries or how Foundation funds are being spent. These funds are meant to sustain the ecosystem for an extended period, yet the ongoing secrecy undermines the foundational principles of DAO governance. A DAO thrives on openness, and keeping such information hidden directly contradicts the spirit of decentralization.
- Exclusion of Holders in Decision-Making: According to the Karrat Constitution, Karrat holders are supposed to participate in all decisions that affect the ecosystem. However, decisions such as the introduction of Winvote, which is tied to the Karrat Protocol, were implemented without a proper proposal (KIP) or community vote. Even if the Security Council expedited this change, the bylaws require a follow-up transparency report. To date, no such report has been issued, violating the established governance framework.
- Failure to Abide by Karrat’s Constitution: Matt Shaw, as a leader in the Foundation, you are paid to ensure the Foundation operates in compliance with the Karrat Constitution. Yet, these consistent oversights make it clear that this obligation is not being fulfilled. This is particularly disappointing, given your company’s role in handling the ApeCoin DAO, where the governance framework and bylaws are properly respected.
The Karrat Foundation was established to uphold the values and principles of the DAO. Yet, these actions—or lack thereof—demonstrate a disregard for the Constitution, the community, and the long-term sustainability of the ecosystem.
I urge you to take immediate corrective action:
- Publish a comprehensive transparency report detailing member salaries, fund usage, and all actions taken by the Foundation to date.
- Commit to including Karrat holders in all future decisions that impact the ecosystem, as outlined in the Constitution.
- Ensure that any decisions bypassing traditional DAO votes (e.g., through the Security Council) are promptly followed up with transparency reports, as required by the bylaws.
Do the right thing, Matt. The Karrat community deserves better. Uphold the Constitution and restore trust in the Foundation’s ability to lead with integrity.
Sincerely,
Trace Boatright