Prop 306: Decentralized Cloud Foundation Operational Expenses
Decentralized Cloud Foundation Operational Expenses
Background
The Akash Network has operated as a self-sustaining blockchain for nearly five years, growing through open-source collaboration and community governance. As regulatory frameworks mature in the crypto industry, Akash must adapt to maintain compliance and minimize risk while preserving its decentralized nature.
The Decentralized Cloud Foundation (DCF) has existed since Akash's inception and aims to take a more active role in the network's execution. This proposal requests funding for the DCF's annual operational expenses, estimated at $382,500. The total request for this proposal is $657,250 and includes a volatility buffer as funds will be liquidated over time. GitHub Discussion.
The Foundation's Role
With governance fully on-chain, the DCF bridges community decisions and professional implementation—a critical evolution toward greater decentralization and regulatory compliance.
Benefits to the Akash Community
Enhanced Transparency & Accountability
- Standardized reporting by independent third-party providers
- Professional financial operations and custody services
- Clear audit trails for all community funds
Regulatory Compliance
- Alignment with emerging regulatory frameworks
- Professional foundation structure following industry best practices
- Reduced regulatory risk for the entire ecosystem
- Tax-advantaged structuring
Community Empowerment
- Infrastructure for potential community grant programs similar to other major crypto projects
- Professional fund management for significant community initiatives
Governance Structure
The DCF operates under a 5-director board ensuring proper oversight and diverse expertise:
- 3 Cayman Islands Directors: Experienced professionals from Horizons Global and Leeward Management specializing in compliance and fiduciary responsibility
- 2 Overclock Labs Executives: CEO and COO providing continuity and technical expertise
Annual Budget
| Item | Details | Annual Cost |
|---|---|---|
| Cayman Directors | $25,000 per director (3 directors) | $75,000 |
| Overclock Directors | $10,000 per director (2 directors) | $20,000 |
| FinOps Service Provider | Custody, payments, accounting, reporting | $150,000 |
| FinOps Implementation | One-time setup fee | $12,500 |
| Legal Reserve | Compliance and legal services | $75,000 |
| Operational Buffer | Contingency for unexpected expenses | $50,000 |
| Total Annual Cost | $382,500 | |
| Volatility Buffer (71.83%) | Semi-annualized volatility. Excess funds will be returned. | $274,750 |
| Total Proposal Amount | $657,250 |
Impact on the Community
What's New
- Professional fund administration for major initiatives and Overclock Labs proposals
- Foundation infrastructure for structured community grant programs (similar to other major crypto projects)
- Enhanced transparency through independent third-party reporting
What Remains Unchanged
- Community-driven governance process
- Proposal submission and voting mechanisms
- Akash protocol development and operations
Why This Transition Matters
DCF will fulfil its role by providing professional infrastructure for Akash Network's continued work with Overclock Labs and the Akash community, creates redundancy to eliminate single points of failure, and builds the infrastructure for future community grant programs similar to those found in other major crypto ecosystems.