Made with Huly®

Article VII. Dissolution

Section 1. Purpose

This article outlines the procedures for the dissolution of the Huly Foundation, ensuring that any such process is conducted in a transparent, fair, and orderly manner, with the best interests of the Huly ecosystem and its participants in mind.

Section 2. Grounds for Dissolution

The Foundation may be dissolved under the following circumstances:

  1. Achievement of all Foundation goals, rendering its continued existence unnecessary.
  2. Insurmountable technical, legal, or financial challenges that prevent the Foundation from fulfilling its purpose.
  3. A community decision that the Foundation is no longer serving its intended purpose effectively.

Section 3. Proposal for Dissolution

  1. A proposal for dissolution may be submitted by any token holder.
  2. The proposal must include:
    1. Detailed rationale for dissolution
    2. Comprehensive plan for winding down Foundation operations
    3. Proposed distribution of remaining assets
    4. Timeline for the dissolution process

Section 4. Community Review and Discussion

  1. Upon submission, the dissolution proposal shall undergo a mandatory 30-day review and discussion period.
  2. During this time, the community may suggest modifications or alternatives to dissolution.

Section 5. Voting on Dissolution

  1. After the review period, the proposal shall be put to a vote.
  2. Dissolution requires:
    1. 80% supermajority of votes cast in favor
    2. Minimum quorum of 50% of all circulating tokens
    3. Voting period of 14 days

Section 6. Execution of Dissolution

If the dissolution proposal passes, the following steps shall be taken:

  1. Immediate halt to all non-essential operations and expenditures.
  2. Completion of any critical pending tasks or obligations.
  3. Finalization and publication of all Foundation records and reports.
  4. Settlement of any outstanding debts or liabilities.

Section 7. Asset Distribution

  1. All remaining liquid assets shall be distributed to token holders proportionally to their holdings at the time of the dissolution vote.
  2. Any non-liquid assets (e.g., intellectual property, domains) shall be transferred to the public domain or to a community-nominated successor entity.

Section 8. Blockchain and Protocol Considerations

  1. The dissolution of the Foundation does not inherently mean the end of the Huly blockchain or protocol.
  2. The dissolution plan must include provisions for:
    1. Ongoing maintenance of the Huly blockchain, if feasible
    2. Gradual reduction of Foundation involvement in network operations
    3. Transition of critical functions to the community or other decentralized mechanisms

Section 9. Final Report and Audit

  1. A final comprehensive report detailing the entire dissolution process shall be prepared and made publicly available.
  2. An independent audit of the dissolution process and final asset distribution shall be conducted and published.
  1. The dissolution process shall comply with all applicable laws and regulations in relevant jurisdictions.
  2. Legal counsel shall be engaged to ensure proper handling of regulatory and compliance matters throughout the dissolution process.

Section 11. Community Support

  1. The Foundation shall provide guidance and support to the Huly community during the transition period following dissolution.
  2. Resources and documentation shall be made available to facilitate the continued operation of the Huly ecosystem, if desired by the community.

Section 12. Irrevocability

Once the dissolution process has been initiated through a successful vote, it cannot be reversed. However, the specific steps and timeline may be adjusted through further DAO voting if unforeseen circumstances arise.

Section 13. Legacy Preservation

As part of the dissolution process, steps shall be taken to preserve the history and achievements of the Huly Foundation and project, including archiving key documents, code repositories, and community contributions.