Tangle Community Treasury Election Statement

The Tangle Community Treasury (TCT) committee would like to elaborate on the outcomes of the recent IOTA and Shimmer on-chain governance elections and outline the subsequent steps for both us and the community. The complexity of the election results and their implications required us to seek legal advice and consult with several ecosystem stakeholders, which delayed this statement by a few weeks.

Conclusion of Election Results

Last month, the results of the March proposals and elections were officially published here: Governance Votes March 2024 Results. After verifying with legal advice for the jurisdiction in which the Tangle DAO is located and discussions with several stakeholders in the ecosystem, we can conclude that:

1. Continuation of the Tangle Community Treasury:

The Tangle Community Treasury was voted to continue on both Shimmer and IOTA for the 2024 to 2025 term.

2. Update of Exhibit C:

Exhibit C was agreed to be updated to the proposed version 3 by the Shimmer members of the Tangle DAO LLC.

3. Election of IOTA Grant Committee:

An IOTA grant committee was elected to manage the IOTA purpose-bound funds of 10 million IOTA for the 2024 to 2025 term. The committee consists of:

• Linus Naumann
• Nicole O’Brien
• 0xMarcus
• Finanzgoblin — Richard Mediavilla

As the results of the other proposals were inconclusive due to not reaching the 5% quorum, no program lead was elected to replace the existing program lead, and no Shimmer grant committee was elected to replace the existing grant committee. Therefore, the previous committee members have remained in place until a valid vote replaces them.

Continuation of the Tangle Community Treasury

Over the past two months since the elections, the Tangle Community Treasury has been continuing to operate as per the operations agreement of the Tangle DAO LLC and the respective exhibits that have been voted on to define its operating procedures.

This means that the new and old members of the Tangle Community Treasury have been fulfilling all legal obligations of the Tangle DAO LLC, including:

• The Shimmer Grant Committee has been managing the proposals, milestones, and payouts that were accepted as part of the 2023 to 2024 term.
• Onboarding the IOTA Grant Committee into the Tangle Grant Committee and becoming operational.
  - The newly elected IOTA Grant Committee has set up a multisig wallet to securely manage the IOTA purpose-bound funds.
  - They have requested and await the transfer of the 10 million IOTA operating budget for 2024 to 2025, currently in the custody of the IOTA Foundation.
• Reviewing new grant proposals submitted for funds from the IOTA community treasury and the Shimmer community treasury.

Next Steps for the Tangle Community Treasury

To ensure the effective continuation and enhancement of our operations, we will be undertaking the following actions:

1. Re-run elections for Lead and Shimmer Grant Committee

• We will initiate the process to hold new elections for the Lead and the Shimmer Grant Committee positions.
• The phase 1 proposals for a Lead is now open here: https://govern.iota.org/c/governance-proposals/community-treasury-2024-round2-program-lead/65
• The phase 1 proposals the Shimmer Grant Committee positions are now open here: https://govern.iota.org/c/governance-proposals/community-treasury-2024-round-2-grant-reviewer/66

2. Update Operating Agreement of Tangle DAO LLC

• We will work on updating the Operating Agreement to ensure it accurately reflects the inclusion of IOTA token holders as members of the Tangle DAO LLC.
• Changes to the Operating Agreement need to be voted on by the Shimmer members of the LLC, so a proposal will be issued as soon as possible.

3. Revise the Operating Agreement and Exhibits of Tangle DAO LLC and define new Standard Operating Procedures

• We will revise the Operating Agreement and exhibits to ensure they reflect the inclusive and comprehensive governance structure that our community supports.

Summary:

• An IOTA Grant Committee has been elected, while new elections will be held for the Tangle Community Treasury Lead and Shimmer Grant Committee positions due to the lack of quorum.
• The IOTA Grant Committee is operational and awaiting the transfer of the operating budget from the current custodians.
• In the absence of elected members to replace the existing Lead and Shimmer Grant Committee, the previous team will continue in their roles as acting reviewers and acting lead until the conclusion of an election to replace them.
• Additionally, a proposal will be made to update the Tangle DAO operating agreement to add IOTA token holders as official members of the LLC.

Moving Forward

Moving forward, the Tangle Community Treasury will work closely with the community to address these challenges and explore alternative solutions to ensure comprehensive representation and effective governance for both treasuries. We encourage active participation and feedback from the community to help us achieve these goals.

Thank you for your continued support and engagement.

Sincerely,

Tangle Community Treasury

TCT Website: www.TangleTreasury.org
TCT Discord: https://discord.gg/CDFkQdzCvJ