AADAO Wind Down -- Oversight Updates and Reports

All wind-down progress reports and status updates will be posted in this thread. For detailed background on the DAO-termination process and objectives, please review the forum discussion here: https://forum.cosmos.network/t/proposal-draft-terminate-aadao-mandate-and-operations-within-60-days/15701/53.

June 2025 Staffing & Compensation

Role FTE % Monthly Compensation
Grants Reviewer 40% $3,500
Operations Coordinator 40% $2,200
Venture Specialist 40% $3,520
Grants Lead 40% $3,520
Internal Auditor & Accountant (Oversight) 25% $3,520
Elected Member (Oversight) 35% $4,200
Marketing & Communications (Contractor) 9% $435

Reduction: Venture Specialist and Grants Lead roles eliminated effective June 30, 2025.

July 2025 Staffing & Compensation

Role FTE % Monthly Compensation One-Time Additional Compensation
Grants Reviewer 50% $4,375 $2,500
Operations Coordinator 55% $3,025 $2,500
Internal Auditor & Accountant (Oversight) 35% $4,550 —
Elected Member (Oversight) 65% $7,800 —
Marketing & Communications (Contractor) 17% $870 —

Reduction: Grants Reviewer and Marketing & Comms Contractor roles eliminated effective July 31, 2025.

July compensation reflects elevated FTE percentages as core contributors and oversight members worked extended hours to support wind-down objectives communicated here.

One-time $2,500 payments (July 30) to Grants Reviewer (“Joni”) and Operations Coordinator cover transaction-signing availability through Dec 2025 and Grants SubDao wallet management from draw-down transition to grants program closure.

Operations Coordinator Offboarding
The engagement may extend through Aug 31, 2025 due to critical data remediation/recovery/reconciliation work.

Current Portfolio Status

As of 1 Aug 2025

Active Grants (11)

Grant Name Supervision Type Approved Disbursed Remaining Status
Passage: Supercharging ATOM Use-Cases in the Metaverse Standard Oversight $75,000 $40,000 $35,000 Active
Superbolt: Bringing Advanced NFTFi to AEZ Standard Oversight $125,000 $40,000 $85,000 Active
Pryzm: Supercharging Yield Optimization Standard Oversight $50,000 $20,000 $30,000 Active
Quadratic Funding for the AEZ Standard Oversight $200,000 $120,000 $80,000 Active
Huggin: ATOM Community Activation in Istanbul Standard Oversight $16,000 $10,000 $6,000 Active
Votion: Hydro Vote Aggregator Standard Oversight $50,000 $25,000 $25,000 Active
Immunefi: Bug Bounty Program for Hydro Ecosystem Standard Oversight $57,882 $14,471 $43,411 Active
Zephrus: Hydro Vote Aggregator Standard Oversight $85,000 $20,000 $65,000 Active
Token Terminal ICL Primary $200,000 $200,000 $0 Active
Archive Node for Cosmos Hub ICL Primary $12,000 $6,000 $6,000 Active
Zellic (Cosmos Hub audits) ICL Primary $440,000 $308,000 $132,000 Active
TOTALS — $1,310,882 $803,471 $507,411 —

Note

  • Standard Oversight: Milestone-based disbursements supervised by AADAO Oversight with ICL support (as needed).

  • ICL Primary: Supervised by Interchain Labs with AADAO Oversight support (as needed).

Discontinued Grants (2)

Grant Name Approved Disbursed Cancelled Status
Asteroid Protocol $111,000 $76,000 $35,000 Discontinued
Margined Protocol (Delta Neutral Vaults for Hydro) $50,000 $20,000 $30,000 Discontinued
TOTALS $161,000 $96,000 $65,000 —

Note

Cancelled amounts will be added to the unused balance returning to the Cosmos Hub Community Pool. Both grants were terminated during the recent wind-down period.

Active Investments (10)

Of the ten investment agreements, six are publicly disclosed: Elys Network, Union, Convexity Labs (Plaza Finance), Drop, Sphinx, and Shaga.
Four are fully executed but remain confidential under nondisclosure provisions.

Ventures Portfolio – Legal Remediation Required

  • Issue: Investment agreements with Elys Network and Union Labs were executed by contributors lacking signing authority, rendering contracts invalid.

  • Resolution: Agreements are being novated with a valid Trustee signature; investee teams have been notified.


Financial Provisions

Trustee Operational Reserve

  • Restricted Expense Grant (REG): $40,000 USDC to Lemma Ltd (AADAO Trustee)

  • Purpose: Cover third-party legal & administrative expenses through Dec 31, 2028

  • Rationale: With AADAO wallets being deprecated, a pre-authorized reserve of funds is needed to ensure the Trustee can meet episodic legal and administrative costs without operational delays or funding friction.

  • Restriction: Funds may be used only for permitted expenses

  • Return: Unused funds returned to the Cosmos Hub Community Pool within 30 days of trust dissolution or 30 days after Dec 31, 2028

  • Technical Support: ICL will facilitate fund returns as needed

Trustee Approves ICL for “Venture Support”/”Protocol Support” Duties

After the Venture Specialist’s departure, a gap emerged in support services for AADAO investee teams. The Trustee interviewed @Mag, consulted his provided references, and concluded that Mag/ICL is well-qualified to assume this role. The venture-support function is limited in scope: offering ad-hoc technical guidance and facilitating introductions to ecosystem investors.

Trustee Service Extension

  • Term: 2 years (2027–2028)

  • Fee: $6,000 per year ( $12,000 total )


Infrastructure & Data Management Risks

Data Loss

  • Slack: Material messages lost due to deletion or non-renewal/downgrade (administrator and owner of AADAO Slack: Ryan Orr/“Better Future”); root cause unclear. Oversight has repeatedly stated that it does not seek access to or preservation of contributors’ private 1:1 messages. However, substantial discussions and governance records were exchanged in sub-DAO group channels and various ad-hoc formations. All non-1:1 correspondence must therefore be retained.

  • Documentation Gaps: ClickUp insufficiently populated; lacks key information because vital context was created and kept in Slack, much of which has since been lost. Oversight first identified these data gaps in June 2024, yet they remain unaddressed. The resulting inconsistencies are especially problematic for understanding and evaluating investment decisions and activities.

Info Integrity Measures

  • System Renewals (2 years):

    • Google Drive, Dual seat access (Oversight + ICL)

    • ClickUp, Dual seat access (Oversight + ICL)

    • Slack: Renewal status uncertain.

  • Socials

    • Administrative access to the AADAO website, X/Twitter account, and Cosmos Hub Forum account have been shared Oversight and @qxnico (ICL).

      Next month’s report will include a detailed cost breakdown for all essential tooling renewals, with expenses projected to stay below $3,000. I’ve also asked the Internal Auditor & Accountant for updated Financial Statements – will be posted here as soon as they’re made available.

5 Likes

The data loss part makes me furious.

Thanks for the report Grace!

Grants reviewer getting over 4k a month is honestly disgusting. Never responded to their emails as it is. Highly convinced this whole thing was just a slush fund for these guys pals. Easiest 50k/year anyone’s ever received.

2 Likes

We would like to request an update on the expenditure breakdown for August and September @Cosmos_Nanny .

It is important to note that the DAO was expected to be closed well before this point. The repeated extensions are beginning to feel like an unnecessary drag, and it may soon fall upon the community to take a definitive stance to bring this process to a conclusion.

2 Likes

First, my apologies for the delayed response. I’ll share a full expenditure update tomorrow.

At present, there are no active core contributor members.

The only individuals receiving remuneration are myself and Matt Brown (Financial Controller & Auditor) – and our compensation varies from 25% - 50% FTE since end of July.

Delisse Gamboa, the Operations Associate, and @CuriousJ were compensated through mid-August and received a one-time payment of 2,500 USDC each to ensure continued availability for proposal reviews and signing activities on DAODAO through December 2025. (Oversight members can’t simultaneously create and authorize payments.) At this juncture, I’m directly reviewing grantee milestone deliverables, and when satisfied, payment proposals are created by me, and subsequently approved by Delisse and Joni.

Some good news: the grants portion of the program may be fully concluded by the end of this month (rather than Dec). In addition to standard administrative and closure activities, two substantive matters remain:

  1. Return of Assets: The 450,000 ATOM liquidity position on Astroport/Stride (via Proposal 800) must be returned to the Cosmos Hub (more details on where we are with this process tomorrow)

  2. Governance and Legal Structure: There are material deficiencies in AADAO’s Guernsey Trust Deed. It’s super important that the establishment docs and gov framework reflect prudent, responsible, and community-aligned promises. Specifically, the shared understanding that upon completion of all DAO activities (grantmaking and ventures), ALL remaining assets will revert to the Cosmos Hub cp.

Cosmos Labs generously connected me with the ICF legal team to assist with this review. Pending their legal analysis, I’ll provide a detailed update on the governance remediation plan for Atom Accelerator Trust shortly.

5 Likes

Thank you for your response. We look forward to a swift resolution of the “Return of Assets”, which we anticipate will mark the final milestone before the trust’s termination. This step should effectively close what we can now consider a failed experiment. It is time to move forward.

FYI – the Trust cannot be terminated until all investment agreements reach maturity (projected end date: December 2028). Lemma LTD will remain the BVI Trustee, and allocated $40,000 grant to cover incidental administrative and legal costs for the next 2+ years. Any unsed funds from this grant will return to the community pool at end of Trust’s term. The Trustee is to provide expense reports directly to Cosmos Labs’ @Mag

Any balance that remains from Proposals 95 and 865 will return to the pool with closure of all grant activites – am aiming to close out all active grants by the end of this month (pending grantees’ responsiveness and cooperation).