An open source software foundation is a not-for-profit entity established to oversee and manage an open source software project. Foundations are also typically responsible for the governance of the platform they represent, voting on decisions about how the platform should operate or changes that need to be implemented. Many high-profile crypto companies are governed by a foundation including Ethereum and IOTA.
Havven is being run as an open source protocol, so it is ideal that the network is governed by a foundation. This governance structure ensures that funds are used responsibly for the benefit of the protocol.
Already, we have received many questions from members of our community wondering how this foundation will operate, and what governance processes will be established. This article will provide detail on how the Havven foundation will operate once the platform launches.
The structure of the foundation
The foundation is a not-for-profit public company limited by guarantee, domiciled in Australia. Initially there will be three directors of the foundation: Kain Warwick, Alan Burt and Jordan Momtazi. The directors of the foundation are responsible for appointing members of the foundation who will provide strategic value in promoting the Havven network and protocol.
All further members of the foundation will be announced once they are determined.
The responsibilities of the foundation
Ultimately, the foundation is responsible for advocating and advancing the usage of the Havven network. This encompasses a number of tasks, including appointing people to maintain the software and systems, handling partnerships and alliances with traditional businesses and crypto projects, and financial management of the foundation funds.
The foundation will also control 12% of the network, a total of 12,000,000 havven tokens out of the 100,000,000 total supply. These tokens are subject to a two year escrow period with quarterly vesting. These tokens will form the initial collateral pool when the system migrates from eth-nomins to havven backed nomins following the data collection period post-launch.
The Havven network has now been launched, but initially some platform features are disabled. This will allow the foundation to determine the parameters that will be implemented when the system is upgraded. The foundation will use the data and observations from this period to assess the performance of the system. Once system parameters are established, the ability to issue havven-backed nomins will be enabled, the foundation will establish the initial collateral pool, and another period of observation and analysis will then help to optimise the system before all havven holders are allowed to issue nomins. In this fashion the foundation will be responsible for managing the rollout of the network as the software matures.
The foundation’s use of funds
The foundation will use the funds from the sale in the early stages to provide collateral for eth-backed nomins. For further information on this process, you can read our launch plan here.
After the platform has transitioned from eth-backed nomins to havven-backed nomins, the foundation will use the proceeds of the sale to provide continuity of funding for the operation of the foundation and maintenance of the network. This will entail a number of different costs including staffing, legal fees, technology purchases, travel expenses and general overheads.