I shared the following message with AADAO Contributors today – am sharing here as well, as it addresses several questions addressed here and on socials:
TLDR:
- Oversight Role:
- Our relationship – Oversight + Core DAO is not inherently tricky; complexity stems from public perception of AADAO’s Oversight Committee and internal lack of clarity as to what the organization is.
- Oversight exists to enforce ethical governance and responsible resource allocation.
- I strongly disagree with characterization of me seeking conflicts; my actions have been deliberate and often de-escalating.
- On this occasion, we had no choice but to escalate the issue for community review due to seriousness of violations.
- Special Report Publication:
- Necessitated by delays in KPI delivery, transparency concerns, and substantiated misconduct findings.
- Standalone report needed due to significance of issues and to avoid burying information.
- Timely disclosure deemed necessary as part of oversight’s duty to the community.
- AtomOne and Perceived Conflicts:
- Interest in AtomOne is purely recreational and intellectual.
- No economic interest or formal relationship with AtomOne.
- Critiques of Cosmos Hub directed at ICF, not AADAO.
- AtomOne is complementary, not competitive, to Cosmos Hub.
- I acknowledge potential optics issues but it is essential to distinguish between PR concerns and actual conflicts of interest. There is a difference.
1. The Role of Oversight and My Involvement
Oversight’s function is not inherently tricky; rather, it’s the public perception of your oversight committee and your lack of internal clarity that creates complexity. I ran in the election to help you make progress on this issue.
This perception stems from both deficient internal governance structures and the community’s somewhat primitive understanding of checks and balances in principle and in practice.
From the outset, I’ve maintained that oversight exists to establish and enforce ethical governance, steward public mandates, and ensure responsible allocation of community pool resources. I view AADAO as a community-owned DAO, subject to the standards of a public-facing entity. My role is both to enforce these standards and to educate, helping to preempt operational vulnerabilities and governance challenges.
Perhaps the most profound tension I’ve identified with respect to your governance and by extension our relationship is — while you publicly embrace your identity as a community-owned DAO, internally, I have heard and observed senior management operating with the prerogative of a hybridized model that I do not believe the community ratified or supports.
You must be governed on the basis of what you are, not what you want to become.
I respectfully disagree with the characterization that I’ve sought out conflicts in my limited capacity as the elected member. My actions have been deliberate and mindful, often choosing not to escalate numerous situations. I believe the perception that I’m seeking conflict is affected by recency bias, and the general cognitive dissonance created by lack of internal resolve as to how you will collectively address the power imbalances in your organization. I respectfully ask for you to consider albeit limited, all our interactions with the DAO since my onboarding.
I have gone out of my way to de-escalate and preempt issues for you.
The recent report was necessitated by specific circumstances, particularly: a) Oversight’s decision to withhold approval for the proposed bonus methodology b) issues and concerns pertaining to GM’s misconduct/mismanagement and c) Youssef’s “communique” strongly implying the use of DAO resources for an external investigation — this is a resource allocation question.
2. The Publication of the Special Report
The decision to publish the report this week was not taken lightly, and the team was kept informed throughout the process. Several critical factors necessitated this timely release:
Significant Delays in KPI and Bonus Framework Delivery :
- Per Proposal 865 and the Performance and Retention Protocol, AADAO committed to publishing KPIs with the “next transparency report.”
- This commitment is now eight to nine months overdue.
- Given this delay, it’s crucial to address the lack of objectivity and specificity in individual performance KPIs; it’s also crucial to communicate the inappropriate intimidation and influence exerted on the Financial Controller regarding various approvals throughout bonus related methodologies.
Need for Standalone Reporting :
- These issues warrant a dedicated report, especially considering the GM’s directive to “bury” the team KPIs in Transparency Report #7.
- Standalone reporting ensures these critical matters receive appropriate attention and aren’t obscured within larger documents.
Addressing Transparency Concerns :
- We’ve observed multiple instances that could objectively be perceived as manipulations of transparency efforts.
- These, coupled with serious issues of parity and consistency in base compensation and bonus mechanisms, demand community awareness.
Oversight’s Duty to Report :
- As the Oversight Committee, we have a fundamental obligation to report such issues to the community.
- This duty is forms a core part of our mandate to ensure transparency and accountability.
Approval Process Concerns :
- The methods and pressures applied in seeking approval for these frameworks raised significant red flags.
Resource Allocation Transparency:
- Given that AADAO operates with community pool resources, there’s an inherent need for clear and timely disclosure of allocation decisions. And by extension, any decision from Oversight to withhold approval that can affect resource utilization.
- The proposed bonus methodology not only involves the allocation of 100,000 ATOM but also concerns hitherto, the use of all ATOM for team compensation.
Substantiated Misconduct Findings :
- Our investigation has yielded supporting evidence of misconduct/mismanagement, which we are obligated to report promptly. While I understand the suggestion to defer findings to the next transparency report (this is the first time we have heard the suggestion – and it is true to say the team has not ever expressed a timeline preference as to how or when any of the involved issues should be reported on).
AtomOne and Perceived Conflicts of Interest
I’m deeply sensitive to the concerns raised about my support for AtomOne and want to address them directly:
- My interest in AtomOne is purely recreational, stemming from intellectual curiosity about governance experiments within the Cosmos ecosystem.
- I have no economic interest in or formal relationship with AtomOne or its developers. I cannot even participate in their GovGen governance as I did not vote on Proposal 848. I refused to vote on 848.
- There are tweets that has been interpreted as “slander” against the Cosmos Hub – these tweets were not directed at AADAO. I urge you to be reminded of my recent involvement with Cosmos Hub governance, I am the proposer of Proposal 952, my critique was aimed at the ICF and their egregious non performance of given mandate.
- I do not currently perceive AADAO as the primary steward of the Hub, though I share your vision that it can become so.
- The primary steward is the ICF; arising from their fiduciary duty from organizing the ATOM ICO, and receiving Genesis allocation of ATOM. I’ve made my views on this abundantly clear. My comments were about the current state of the Hub under the ICF’s pathological lack of stewardship, not at all about AADAO’s efforts or its potential.
- To be super clear, when I speak about the failures of the hub, I am speaking about the failures of the ICF.
I see projects like AtomOne as complementary experiments within the ecosystem, not as competitors to the Cosmos Hub. It is the Litecoin to our Bitcoin, ATOM.
The either/or mentality and ultimatum-driven bargaining has balkanized the Hub and the Cosmos. It is distressing to me personally that contributors and community members are endorsing binaries that are wholly non-constructive in my view.
Personally, I feel we should embrace experimental forks of the hub.
While I understand how my interest can be misconstrued, it does not constitute a conflict of interest. I’m not a woman preoccupied with optics.
As an Oversight member, not a Core DAO contributor, my role focuses on governance and resource utilization, not AADAO’s public image. The separation of duties and responsibilities is essential to understanding separation of powers, checks and balances.
I acknowledge this may affect optics, but it’s crucial to distinguish between your PR/marketing needs vs. actual and potential conflicts of interest. My right of free speech should not be abridged for organizational PR objectives, either.
There is a huge difference.
My commitment to ATOM and AADAO’s success and integrity remain unwavering.
I’m here to support your vision and help navigate the complex challenges of building a community-owned DAO. I’m open to discussing how we can address these concerns constructively and establish clear boundaries and procedures that maintain both the principled reality and impartiality of oversight members’ roles.
Respectfully,
Grace