Made with Huly®

Article VIII. Conflict of Interest and Ethical Standards

Section 1. Purpose

This article establishes policies and procedures to identify, disclose, and manage conflicts of interest within the Huly Foundation, and to uphold high ethical standards in all Foundation activities.

Section 2. Definition of Conflict of Interest

A conflict of interest arises when an individual’s personal, professional, financial, or other interests have the potential to interfere with their ability to act in the best interests of the Huly Foundation and its community.

Section 3. Individuals Covered

This policy applies to:

  1. Foundation staff, including the Secretary
  2. Members of specialized working groups
  3. Major token holders (defined as holding >1% of circulating supply)
  4. Any individual in a position to influence Foundation decisions

Section 4. Disclosure Requirements

  1. All covered individuals must disclose any potential conflicts of interest immediately upon recognition.
  2. Disclosures shall be made through a standardized form and recorded on-chain for transparency.
  3. Annual conflict of interest statements shall be required from all covered individuals.

Section 5. Types of Conflicts to be Disclosed

Potential conflicts include, but are not limited to:

  1. Financial interests in competing projects or technologies.
  2. Personal relationships with individuals or entities doing business with the Foundation.
  3. Outside employment or consulting arrangements related to blockchain or cryptocurrency.
  4. Significant token holdings in other blockchain projects.

Section 6. Review Process

  1. A Conflict of Interest Committee, elected by the DAO, shall review all disclosures.
  2. The Committee shall determine if a conflict exists and recommend appropriate action.
  3. Committee decisions may be appealed to the full DAO for a vote.

Section 7. Management of Conflicts

When a conflict is identified:

  1. The conflicted individual must recuse themselves from related discussions and decisions.
  2. If recusal is not sufficient, the individual may be required to divest certain interests or resign from conflicting roles.
  3. All actions taken to manage conflicts shall be recorded and made public.

Section 8. Ethical Standards

All individuals associated with the Foundation shall adhere to the following ethical standards:

  1. Act in the best interests of the Huly ecosystem and its community.
  2. Maintain the highest standards of integrity and transparency.
  3. Respect the privacy and rights of all community members.
  4. Avoid any actions that could bring the Foundation into disrepute.
  5. Uphold the principles of decentralization and community governance.

Section 9. Insider Trading and Market Manipulation

  1. The use of non-public information for personal gain in token trading is strictly prohibited.
  2. Any attempt to manipulate the market price of Huly tokens is forbidden and will result in immediate removal from any Foundation role.

Section 10. Gifts and Compensation

  1. Foundation staff and working group members may not accept gifts, payments, or compensation from external parties in relation to their Foundation duties.
  2. Any compensation for Foundation-related work must be approved by DAO vote and publicly disclosed.

Section 11. Whistleblower Protection

  1. The Foundation shall maintain a secure, anonymous channel for reporting ethical violations or conflicts of interest.
  2. Individuals who report concerns in good faith shall be protected from retaliation.

Section 12. Education and Training

  1. All covered individuals must complete annual ethics and conflict of interest training.
  2. The Foundation shall provide ongoing education to the community about ethical standards in blockchain governance.

Section 13. Enforcement

  1. Violations of this policy may result in removal from Foundation roles, as determined by DAO vote.
  2. In severe cases, legal action may be pursued if allowed by applicable laws.

Section 14. Public Disclosure

  1. A public registry of all disclosed conflicts and their resolutions shall be maintained on-chain.
  2. Annual reports summarizing conflict of interest management shall be published.

Section 15. Policy Review

This conflict of interest policy and ethical standards shall be reviewed annually by the DAO, with any proposed changes subject to the amendment process outlined in Article VI.