Hello,
My name is Blockface.
Every single post by every single community member on this forum boils down to one thing: recentralization. Tell me I’m lying.
The community is concerned that the proposed endowment will be spent by the central authorities exclusively. These concerns often come off as “Can I Haz Da Monies” but hey, it is what it is.
So, to make sure we put a fine point on the root cause of The Community’s Concerns so it’s right here out in the open…
(I wonder if I can use Markdown? Anyhoo. I guess I’ll find out after I press reply huh)
Governance and Centralization Risks
For STX holders, SIP-031 introduces a new operational structure with potential centralizing risks, particularly concerning appointments to key positions. The community should closely monitor these appointments to ensure the continued decentralization and accountability of the Stacks ecosystem.
Treasury Committee Authority and Composition
Significant Concentrated Power
The Treasury Committee will hold significant power, being responsible for:
- Supervising and maintaining the Stacks Endowment’s assets
- Approving all major actions and allocations
- Setting the endowment’s investment policy
- Determining asset allocation
- Overseeing investment performance
Critical Control Mechanisms:
- Mint Address Control: The committee will hold the keys to the Endowment’s mint address
- Authorization Power: They will authorize all token transfers to operational wallets
- Monetary Concentration: This concentrates substantial monetary power in the hands of a few appointed members
Committee Structure and Self-Perpetuation Risk
The committee is designed to have nine members:
- Five keyholders with ongoing terms
- Four rotating members serving 36-month terms
Selection Process Concerns:
- Future appointments will follow an open community nomination period
- However, they ultimately require a two-thirds supermajority vote of the existing Treasury Committee
- This mechanism allows the incumbent committee to have strong influence over who joins
- Potential risk: This could lead to a self-perpetuating group
Initial Appointment Concerns
Temporary Appointments Committee
A significant point of concern is the initial formation of the Treasury Committee:
- A temporary Appointments Committee will be formed to make foundational appointments
- The specific individuals who will comprise this Appointments Committee were initially listed as “OPEN ITEM” in the draft SIP
- Critical Issue: The composition of this temporary committee is crucial, as it will determine the initial makeup of the powerful Treasury Committee without a prior community-governed selection process for itself
Pre-Allocated Positions
- At least three initial keyholder positions on the Treasury Committee are proposed
- One position explicitly reserved for the Chief Investment Officer (CIO) of the Endowment
- The CIO is responsible for overseeing the Endowment’s investment portfolio and strategy
- Centralization Risk: This pre-allocation of key roles, especially one tied to an internal operational function, could centralize financial control from the outset
Community Concerns: Community members have expressed concern that these initial appointments might favor:
- “The same people currently running Stacks (maybe add in a few VCs)”
- “Influential entities”