Foundation Sunset
The Problem with Permanent Foundations
Most "decentralized" projects have permanent foundations that:
Control significant token supply
Maintain admin keys
Direct development priorities
Effectively govern despite "DAO" claims
This isn't decentralization. It's centralization with extra steps.
Our Commitment: Genuine Sunset
The Nonterritorial Foundation commits to reducing its power to zero by Year 10, following a defined schedule:
Voting Power Reduction
0-1
10%
-
2
8%
-20%
3
7%
-30%
4
5%
-50%
5
4%
-60%
6
3%
-70%
7
2%
-80%
8
1%
-90%
9
0.5%
-95%
10
0%
-100%
This schedule is constitutionally protected. It cannot be extended.
What Gets Transferred
Voting Power Foundation tokens burn on schedule. Voting power redistributes to active stakeholders (artists, hosts, nodes) proportionally.
Treasury Control Multi-sig control transitions:
Year 1–3: Foundation holds 3 of 5 keys
Year 4–6: Foundation holds 2 of 5 keys
Year 7–9: Foundation holds 1 of 5 keys
Year 10+: Foundation holds 0 keys
Development Authority
Year 1–3: Foundation directs development roadmap
Year 4–6: Joint governance with Technical Committee
Year 7+: DAO controls all development priorities
Admin Keys Any remaining admin capabilities transfer to DAO-controlled multi-sig by Year 5.
Sunset Milestones
Year 2: Governance Transition Begins
First voting power reduction
Technical Committee takes co-leadership of development
Treasury Committee established with stakeholder majority
Year 4: Foundation Becomes Minority
Voting power drops to 5%
Cannot block any standard proposals
Development authority fully shared
Year 5: Admin Transfer Complete
All admin keys transferred to DAO multi-sig
Foundation veto power expires
Operational role becomes advisory only
Year 7: Minimal Role
Voting power at 2%
No operational control
Historical documentation and advisory only
Year 10: Complete Sunset
0% voting power
No treasury keys
No admin capabilities
Foundation may dissolve or transition to pure advocacy
What the Foundation Retains
During Sunset Period (Years 1–10)
Declining Voting Power Participates in governance at scheduled percentages.
Veto Power (Years 1–5 only) Limited veto on proposals that would:
Violate constitutional protections
Endanger network viability
Enable speculation
This veto expires completely at Year 5.
Operational Role (Years 1–5) Day-to-day operations, development coordination, partnership management. Transitions to community by Year 5.
Advisory Role (Years 5–10) Non-binding guidance, institutional knowledge, dispute mediation if requested.
After Sunset (Year 10+)
Nothing The Foundation has no governance power, no admin keys, no treasury control. The network is fully autonomous.
The Foundation legal entity may continue for:
Holding historical records
Representing network in legacy legal contexts
Advocacy and public education
But it has no control over the network itself.
Why This Matters
True Decentralization
Most projects never actually decentralize. The foundation always has "emergency powers" or "critical keys" or "necessary oversight."
We're committing—constitutionally—to zero foundation power. The timeline is fixed. The milestones are defined. The accountability is public.
Builder Credibility
We're building infrastructure for others to use. That requires trust. And trust requires knowing that we won't maintain perpetual control.
Artists can commit to the network knowing it won't be rug-pulled by founders. Hosts can invest in programming knowing parameters won't arbitrarily change. Partners can integrate knowing the system will remain stable.
Aligned Incentives
Foundation sunset aligns our incentives with network success:
Without sunset: Foundation could extract value, make self-serving decisions, prioritize own continuation over network health.
With sunset: Foundation's only path to lasting impact is building a network strong enough to thrive independently.
Accountability Mechanisms
Public Reporting
Foundation publishes quarterly reports including:
Current voting power and scheduled reductions
Treasury holdings and expenditures
Development progress
Transition milestones status
External Verification
Annual third-party audit of:
Voting power calculations
Treasury management
Milestone compliance
Constitutional adherence
Community Oversight
Community can trigger review if Foundation appears to:
Delay scheduled power reduction
Exceed authority
Act against network interests
Review by independent panel with authority to enforce compliance.
Accelerated Sunset
The Foundation can voluntarily accelerate sunset (reduce power faster than scheduled). The community can also vote (66% supermajority) to accelerate Foundation sunset if:
Foundation acts against network interests
Milestones are missed without justification
Community loses confidence
Transition Support
Knowledge Transfer
Foundation commits to documenting everything:
Technical architecture and decisions
Operational procedures
Partnership relationships
Historical context and rationale
All documentation public and maintained.
Capacity Building
Foundation invests in community capacity:
Training for committee members
Development of community leadership
Support for DAO governance tools
Resources for independent operation
Contingency Planning
Plans for:
Foundation dissolution before Year 10
Emergency leadership transition
Continuity of critical functions
Legal structure adaptation
The Outcome
By Year 10, Nonterritorial is:
Fully governed by artists, hosts, and community
Self-sustaining through licensing revenue
Technically operated by community
Independent of any founding entity
This is what genuine decentralization looks like: not "we promise to be good stewards forever," but "we've made it technically and legally impossible to remain in control."
The Foundation's job is to build something good enough to not need us. And then to leave.
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