In Proposal 104, which was approved on 1 March 2023, Notional has been granted 120,000 ATOM for 365/24/7 monitoring of the Cosmohub regarding security vulnerabilities. The exact on-chain proposal can be foundhere
The funds granted in the proposal have been used to create a vesting account. At the time of this proposal, there are approximately 120,000 ATOMs left in the wallet, with a current value of $1,100,000.
Of these 120.000 ATOM, 90.000 ATOM are still locked and vesting.This proposal only refers to the vesting coins remaining in the wallet at the time of the clawback. Coins that have already been paid to Notional are not part of this clawback.
The wallet with the vested funds is cosmos145hytrc49m0hn6fphp8d5h4xspwkawcuzmx498
In the past few days, Notional has undergone a separation. 16 of the developers, and therefore most likely all developers, have left the company in a dispute with the company management. Currently, there appears to be a legal dispute over the handover of the cryptographic keys and the transfer of company shares. This is all being shared on social media, which is currently ending in a real mud fight.
An explanation of the devs who have left Notional can be found here:
As a result, it is currently virtually impossible for Notional to fulfil its requirements within the scope of the services granted in 104. Furthermore, it is doubtful that Notional will be able to fulfil its obligations in the near future given the current adversities. The loss of 16 developers in such a short period of time is hardly manageable, even without legal disputes.
Jacob, Notional’s CEO, has repeatedly affirmed that Notional is in a position to fulfil its obligations. However, there is no evidence of this other than the statement. The news that the last 3 developers have also left the company means, in my opinion, that there are simply no resources left within the company to realise proposal 104.
In addition to that, this proposal involves time-critical and confidential issues that must be resolved clearly and promptly. These cannot be left to a company that is more concerned with itself than with others.
Proposal 104 states: "If the community feels displeased with Notional’s work, they should create a governance proposal to claw back the unvested portion.
In light of the current situation, I hereby request that the money be returned to the community pool. As this is only possible through a software update, this is a signalling proposal to see if this demand finds a majority within the community.
It should also be noted that 3 out of 5 people from the multisig are no longer part of the company. This means that even if Notional were to continue the security assignment. A new Multisig account must be created for security reasons.
What does each vote mean?
YES - I think that the money Notional has received should be returned to the CP.
NO - I believe that Notional should continue to be responsible for maintaining the security of the Cosmos Hub
NO WITH VETO - This proposal is spam or damages the integrity of the Cosmos hub
ABSTAIN - I don’t want to decide, but would like to contribute to reaching the quorum
Edit 1: Added the part about the multisig. 3 out of 5 members have left the company
Edit 2: Clarified that only unvested coins are affected
Edit 3: Clarified that only unvested coins are affected in the title.