Aleph Zero Foundation Treasury Management

Aleph Zero Foundation Treasury Management

Treasury Management Rules for the Aleph Zero Foundation

1. Purpose and Scope

These rules outline the internal governance of the Foundation's treasury management overseen by the Aleph Zero Foundation Board. The overarching mission of the Aleph Zero Foundation is the promotion of the Aleph Zero protocol and, by doing this, to safeguard the longevity and encourage the sustainable development of the Aleph Zero blockchain and its ecosystem.

2. Financial Management and Strategy

The Foundation is committed to a proactive financial strategy, ensuring a solid fiscal position to support the development and long-term sustainability of the Aleph Zero blockchain, its ecosystem, and its overall business.

3. Foundation Grant Provision

The Foundation is authorized to provide grants to ecosystem projects and external partners. These grants aim to nurture innovation, promote the Aleph Zero ecosystem, and foster productive partnerships that align with the Foundation's mission.

4. Community grant treasury

At the genesis of the Aleph Zero blockchain, a community grant treasury was created separately with a public key of 5EYCAe5fg5WiYGVNH6QpCFnu55Hzv9MwtjFHdQCx8EaSQTm2. This wallet is funded with 10% of all inflationary coins and amounts to 2.7M AZERO for the year from October 14th, 2024 to October 25th, 2025. This figure will decrease annually in line with AZERO’s exponentially decreasing inflation mechanism. Overall, these funds will be made available for the community to provide grants throughout the ecosystem once treasury management features are incorporated. The Foundation does not possess the seed phrase for this account as it is accessible only via governance functions.

5. Foundation cold wallets

The list of Foundation cold wallets generated during the genesis block includes (and is limited to):

• 5ChkT8DrRCktgU9WcuGMnbQ2WmHgoxk5D5CK1B4rQoSpGBrG,

• 5GyVP1LuU2XgCRfL2H3wLaTfZm2JBqXuaTw1FfbBEc5hSzu9,

• 5Chrg9XwPQRNz4AZSWBRGLXhngRsVzTiu3Go2VV4qFfEFdaX,

• 5E59w8VGDHsuoqsKrC4dsjYWghpQvtiXwau3Zsg2RKqqHFVG.

The Foundation also reserves the right to create hot wallets, such as 5GXVCpZLsyHyc7km24d1MjBjdTLxvwJc9fWTVCqMbb5vVWhu, which are funded by either direct transfers from the cold wallets listed above, or by staking rewards.

The Foundation-owned AZERO coins are used to cover ongoing operational expenses, including development, marketing, grants provisioning, onboarding new institutional partners, responsible trading, liquidity provisioning, onboarding code auditors, and other ecosystem partners.

All wallets aforementioned above are managed by a board-controlled multi-signature scheme.

6. Risk Management

Effective risk management strategies will be deployed to address financial, operational, and market risks associated with the Foundation's treasury operations. Regular reviews of market conditions, investment portfolio performance, and liquidity management will be conducted.

7. Strategic Over-the-Counter (OTC) Coin Sales

The Foundation reserves the right to undertake strategic OTC coin sales of AZERO from its treasury. These transactions must be executed responsibly to minimize any potential impact on market dynamics and sentiment. The Foundation prioritizes value-added partnerships and relationships.

8. Coin Trading

The Foundation may engage in trading activities on both centralized and decentralized exchanges. However, all trades will be made with sensitivity to market conditions and should never be performed as direct, bulk market orders to avoid undue influence on market prices. Sales can occur, however, these are executed in favorable market conditions and are done by placing small orders on the ask side only which allows for a natural response to market demand.

9. Investment in Other Projects

The Foundation may invest in other projects, prioritizing those within the Aleph Zero ecosystem. This strategy stimulates synergy, collaboration, and holistic growth within the blockchain sphere.

10. Compliance and Reporting

The Foundation must comply with all relevant legal and regulatory standards in managing its treasury. Regular, detailed reports on treasury activities and performance will be prepared and subjected to internal review.

11. Transparency, Accountability, and Audit

The Foundation is externally audited on a yearly basis, which includes accountability in all financial operations, thorough internal reporting of treasury activities, and responsible resource management. The process is designed to ensure adherence to the highest standards of treasury management, among other activities.

12. Review and Amendment of the Rules

These rules are subject to regular reviews and may be amended as necessary based on changes in market conditions, the Foundation’s strategic objectives, and regulatory requirements.By adhering to these rules, the Aleph Zero Foundation strives to ensure the sustainable development and longevity of the Aleph Zero blockchain.

Past and upcoming activities (last update: July 30th, 2024)

March 27–28, 2024: Scheduled unbonding of 2,003,374 AZERO to be used for market-making and marketing activities.

July 24, 2024: Unbonding of 2,000,000 AZERO to be used for an upcoming market-making loan, operational expenses (development, grants, third-party integrations), and an OTC sale. October 23, 2024: Scheduled transfers of 1,281,000 AZERO: loan to market makers.