Formal Governance Policy v1.0
1. Fund Purpose
The System Operations Reserve is a dedicated pool of 10 trillion ANC, established exclusively to fund the long-term operation, security, development, and sustainability of the ANCORA network.
This reserve does not belong to any foundation, corporation, team, or individual. It is the common property of all network participants, managed exclusively for the benefit of the network.
2. Authorized Usage Categories
Reserve funds may only be expended for the following explicitly authorized purposes:
Protocol Security: Third-party security audits, bug bounty rewards, cryptography research, post-quantum security upgrades
Core Protocol Development: Core client development, protocol upgrades, bug fixes, performance optimizations
Network Infrastructure: Validator ecosystem grants, node operation incentives, distributed infrastructure deployment
Ecosystem Development: Third-party developer grants, SDK development, integration support, educational resources
Governance Operations: Governance system maintenance, arbitration, transparency reporting, community operations
Legal & Compliance: Regulatory compliance, legal representation, intellectual property protection
3. Prohibited Usage
Reserve funds may NEVER be used for:
Any form of compensation, salary, or payment to founding team members, core developers, or governance council members
Marketing, advertising, public relations campaigns, or token price support activities
Venture investments, equity purchases, or any speculative financial activities
Loans, grants, or transfers to any individual or entity outside the explicitly authorized categories
Any form of political lobbying, campaign contributions, or partisan activities
Any expenditure that benefits any single entity disproportionately or without public benefit
4. Spending Approval Process
All reserve expenditures require the following multi-stage approval process:
Proposal Submission: Any network participant may submit a spending proposal with detailed budget, scope, and deliverables.
Treasury Council Review: 7-member Treasury Governance Council conducts technical and financial review (5-of-7 approval required).
Community Voting Period: 14-day public comment and community voting period.
On-Chain Execution: Approved proposals are executed automatically via on-chain multisig with 48-hour time lock for public observation.
All expenditures under 1,000,000 equivalent require a 30-day public observation period.
5. Transparency & Accountability
Real-Time On-Chain Transparency: All reserve balances, releases, and expenditures are publicly visible on-chain at all times.
Monthly Transparency Reports: Detailed monthly expenditure reports published on the first day of each month, including all transactions, recipients, and deliverables.
Annual Independent Audit: Annual third-party financial audit of all reserve expenditures, results published publicly.
Clawback Mechanism: Funds granted for specific projects are subject to clawback if deliverables are not met per proposal terms.
6. Governance Safeguards
No Single Entity Control: No individual, council, or entity may unilaterally authorize or execute reserve expenditures.
Spending Cap: Maximum monthly expenditure capped at 50% of monthly reserve release, ensuring minimum 100-year operational runway.
Community Veto: Any expenditure may be vetoed by a 51% community vote within the 48-hour time lock period.
Term Limits: All Treasury Council members serve 2-year staggered terms with maximum 2 consecutive term limit.