ICF's funds fork toward a set of many competing DAOs

[Decentralist1]

Proposal plan draft to fork away the Interchain Foundation's (ICF) funds and attract the masterminds to process this for fullfilment

This proposal outlines a plan to fork away the ICF's funds toward a set of many competing DAOs.

Motivation

The ICF has been criticized for its lack of transparency and accountability, the opaque. The ICF's funds are currently controlled by Foundation Council (FC) a small group of people with clear conflict of interests, and there is no way for the community to hold them accountable for their decisions.

This proposal aims to decentralize the ICF's funds and give the community more control over how funds are used. By forking the ICF's funds under of management to a set of many competing DAOs, we can ensure that the funds are used in a way that is beneficial to the Cosmos Hub and community as a whole.

Proposal

The following steps would be taken to fork away the ICF's funds:

1. A new GitHub repo would be created.
2. A set of criteria would be developed for selecting DAOs
3. DAOs that meet the criteria would be invited to apply for managing the funds
4. Establish of a committee from long-term Cosmos contributors with good will without any conflicts of interest, which will review the applications and decide which DAOs represents the same values the best
5. After the new body of operations and fund management is created, proposal to demand ICF to remove all the funds and transferred those first to communitypool. Later creation of new management/operations accounts

Benefits

The benefits of this proposal include:

• Increased transparency and accountability: By decentralizing the ICF's funds, we would make it more difficult for a small group of people to control how funds are used.
• Increased community participation: By giving the community more control over the ICF's funds, we would encourage more people to participate in the decision-making process.

Risks

The risks of this proposal include:

• The funds could be lost or stolen. Prevent mechanisms
• The funds could be used for malicious purposes. Prevent mechanisms
• The funds could be used to fund DAOs that are not in the best interests of the community. Prevent mechanisms
• The committee and DAOs should be technically/economically experienced, competent and wise so that the core operation, maintenance and development work of Cosmos Network continues

[Decentralist1]

Public good research for the community's use to be able to inspect ICF's funds and accounts which are also in opaque from the community

Interchain Foundation Genesis Atoms were split between two multisigs a 2 (threshold)-of-3 (pubs) with 30% of the ICF atoms and a 3 (threshold)-of-5 (pubs) with 70%

• source: https://github.com/cosmos/mainnet/blob/master/accounts/icf/multisig.json

Accounts:

• 2-3 multisig
  cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

Genesis amount:
6,083,156.55 ATOM

• 3-5 multisig
  cosmos1z8mzakma7vnaajysmtkwt4wgjqr2m84tzvyfkz

Genesis amount:
14,194,031.94 ATOM

---

8/4/2023 Interchain Foundation Tweets:
"We inform the community that the ICF will transfer ATOMs from its primary multisig wallet to an operations wallet today."

• Tweet
  https://twitter.com/interchain_io/status/1687416258021523456?t=5KEG2zcLk-GX2wSIVBikDQ&s=19

• False in the Tweet
  Based on the post-tweet research, the reallocation of the multisig accounts had already been completed in February-April 2023.

• Transparency/accountability
  The addresses of the new ICF Operational accounts have not been reported, in a opaque from the community.

---

Research 4/8/2023 - Transactions

• from 3-5 multisig
  cosmos1z8mzakma7vnaajysmtkwt4wgjqr2m84tzvyfkz funds were removed fully to account cosmos1sufkm72dw7ua9crpfhhp0dqpyuggtlhdse98e7

New operational account cosmos1sufkm72dw7ua9crpfhhp0dqpyuggtlhdse98e7

• Transactions to new operational account

3,522,316.300000 +3,522,316.440000
+1,000,000
= 8,044,632.74
Total removed ATOM

• Links to transactions

April 10th 1,000,000 ATOM
https://www.mintscan.io/cosmos/transactions/533F14F513DEB9A81CA16042CB9546033CB123B93812D70A74506E1C9AFB7935

April 17th 3,522,316.44 ATOM
https://www.mintscan.io/cosmos/transactions/518FFFC5B04DC893D85B425AB439FF021D7735D970CEEC5F0EED56BB1BF92EE4

April 19th 3,522,316.3 ATOM
https://www.mintscan.io/cosmos/transactions/518FFFC5B04DC893D85B425AB439FF021D7735D970CEEC5F0EED56BB1BF92EE4

3-5 multisig balance after reallocation: $16.00

Even without screenshots can be stated that the multisig account cosmos1z8mzakma7vnaajysmtkwt4wgjqr2m84tzvyfkz total amount of funds transferred was 8,044,633.74 ATOM before the allocation to cosmos1sufkm72dw7ua9crpfhhp0dqpyuggtlhdse98e7
because before these transactions there have been just undelegations

• Screenshot from Mintscan.io Cosmos explorer

• Link to multisig account
  https://www.mintscan.io/cosmos/accounts/cosmos1z8mzakma7vnaajysmtkwt4wgjqr2m84tzvyfkz

• Screenshot 8/8/2023 from a new operational account total balance

---

Research 8/6/2023 Transactions

From 2-3 multisig cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

• 2/10/2023

From address:

cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

To address:

cosmos17u903qxqc6dzn3chvmc9zzp9fl4xja0pwggfj7

Amount:
195,000
ATOM

Tx
https://www.mintscan.io/cosmos/transactions/C51B739241A629478E8C23FD0396ADE943D795A17E3EABDD802F1BF943CFE2F1

• 2/12/2023

From Address:

cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

To Address:

cosmos17u903qxqc6dzn3chvmc9zzp9fl4xja0pwggfj7

Amount:
198,000
ATOM

Tx
https://www.mintscan.io/cosmos/transactions/222D41941E2DF2167E43B0C4AE24CC80224E3C3D34F9CC722BEF51A14C87C84A

• 3/10/2023

From Address:

cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

To Address:

cosmos17u903qxqc6dzn3chvmc9zzp9fl4xja0pwggfj7

Amount:
150,000
ATOM

Tx
https://www.mintscan.io/cosmos/transactions/FC2263B117AEEAAB0293D864CE4CE1343C99C6812FA844DC9FD5D18E4A31E475

• 4/3/2023

From Address:

cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

To Address:

cosmos1z6czaavlk6kjd48rpf58kqqw9ssad2uaxnazgl

Amount:
500,000
ATOM

Tx
https://www.mintscan.io/cosmos/transactions/B56ECCBC04CA0B4BCF25EF1221C63F64E6E624BCEB15CA806B0BCC1E3459F838

• 4/4/2023

From Address:

cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

To Address:

cosmos1z6czaavlk6kjd48rpf58kqqw9ssad2uaxnazgl

Amount:
4,548,482
ATOM

Tx
https://www.mintscan.io/cosmos/transactions/00F627DDA4E6076FBF277CE18CE7203EC699A9B9976AFAF6142A16726577BDB1

2-3 multisig balance after reallocation: $14.41

Link to multisig account
https://www.mintscan.io/cosmos/accounts/cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

---

Summary:

This research focused only on send transactions, which excluded irrelevant transactions; receive, multisend, reward, comission, vote, delegate, re-delegate

Interchain Foundation 2-3 multisig cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

• 2-3 multisig
  cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

• 8/10/2023 Balance:

$14.41

• New operational accounts

cosmos17u903qxqc6dzn3chvmc9zzp9fl4xja0pwggfj7

195,000
+198,000
+150,000
= 543,000
Total removed ATOM from cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

• 8/10/2023 Balance

32,055.319723
ATOM

$ 270,867.4500**

• Screenshot from the account

• cosmos1z6czaavlk6kjd48rpf58kqqw9ssad2uaxnazgl

500,000
+4,548,482
= 5,048,482
Total removed ATOM from cosmos1unc788q8md2jymsns24eyhua58palg5kc7cstv

• 8/10/2023 Balance

5,420,939.424691
ATOM

$ 45,806,938.1400

• Link to account

https://www.mintscan.io/cosmos/accounts/cosmos1z6czaavlk6kjd48rpf58kqqw9ssad2uaxnazgl

• Screenshot from the account

---

Interchain Foundation 3-5 multisig cosmos1z8mzakma7vnaajysmtkwt4wgjqr2m84tzvyfkz

3-5 multisig cosmos1z8mzakma7vnaajysmtkwt4wgjqr2m84tzvyfkz

• 8/10/2023 Balance:

$16.00

New operational account is cosmos1sufkm72dw7ua9crpfhhp0dqpyuggtlhdse98e7

3,522,316.300000 +3,522,316.440000
+1,000,000
= 8,044,632.74
Total removed ATOM from
cosmos1z8mzakma7vnaajysmtkwt4wgjqr2m84tzvyfkz

• 8/10/2023 Balance:

8,145,009.893057
ATOM

$ 68,743,883.5000

• Link to account

https://www.mintscan.io/cosmos/accounts/cosmos1sufkm72dw7ua9crpfhhp0dqpyuggtlhdse98e7

• Screenshot from the account

---

Interchain Foundation Treasury

• Annual financial report 2022

https://medium.com/the-interchain-foundation/annual-report-2022-7be419e1a1f4

• Screenshot from 2022 Treasury snapshot

• Treasury Ethereum and Bitcoin accounts

ETH: 0xe825363f3bedabc95b2a9d42dbc73ec7b82b57d3

BTC: 35ty8iaSbWsj4YVkoHzs9pZMze6dapeoZ8

• Source:

ETH
https://github.com/cosmos/mainnet/blob/70d6682e987b81ec6cd73405e40aaecbf9f51912/accounts/public/eth_main.go

BTC
https://github.com/cosmos/mainnet/blob/70d6682e987b81ec6cd73405e40aaecbf9f51912/accounts/public/btc_main.go#L14

---

BTC account research 8/13/2023

Screenshot and link from explorer
https://www.blockchain.com/explorer/addresses/btc/35ty8iaSbWsj4YVkoHzs9pZMze6dapeoZ8

• Reported balance by ICF annual report 2022 4% from 308M

All time total BTC balance 4,498.56278647 BTC

Current BTC balance 383.84860018 BTC

4,498.56278647
-383.84860018
= 4,114.71419 BTC (total txs out)

---

ETH account research 8/13/2023

• Screenshot and link from explorer

https://www.blockchain.com/explorer/addresses/eth/0xe825363f3bedabc95b2a9d42dbc73ec7b82b57d3

• Reported balance by ICF annual report 2022 15% from 308M

All time total ETH balance
246,009 ETH

Current ETH balance
38,687.260983646059253983 ETH

246,009
-38,687.260983646059253983
= 207,321.739 ETH (total txs out)

---

Treasury ATOM balance, reported by ICF annual report 2022 43% from 308M (Dollars?)

ATOM Avg. price around April 2022 annual report $26.59

308,000,000 * 0,43
= $132,440,000

$132,440,000/$26.59
= 5,008,341.69 ATOM

Treasury ATOM account address and current balance unknown

---

Fiat reported balance by ICF annual report 2022 38% from 308M

308,000,000* 0,38
= $117,040,000

Current balance unknown

[Decentralist1]

fundraiser/Interchain Cosmos Contribution Terms - FINAL.pdf

https://github.com/cosmos/cosmos/blob/master/fundraiser/Interchain%20Cosmos%20Contribution%20Terms%20-%20FINAL.pdf

[m0therforker]

Treasury ATOM balance, reported by ICF annual report 2022 43% from 308M (Dollars?)

ATOM Avg. price around April 2022 annual report $26.59

308,000,000 * 0,43
= $132,440,000

$132,440,000/$26.59
= 5,008,341.69 ATOM

Hey @Decentralist1
Thank you for the summary. Heads up -- ICF total treasury reported for 2022 is $304M, not $308M.

Report link: https://github.com/gaiaus/ICF/blob/main/stiftung/transparency/reports/ICF_AnnualReport_2022.pdf