Retro Funding 5: Self-dealing Policy
It is expected that Optimists refrain from self-dealing. While opportunities for self-dealing in the Citizens’ House will be reduced via incentive design and voting mechanisms, the Foundation may implement additional measure to discourage self-dealing, to be defined at the beginning of each Round, while these mechanisms are further developed. The Foundation has defined the below process to address self-dealing in Round 5, if needed.
Conflict of Interest Disclosure
Voters should not vote for organizations where they expect any portion of funds to flow to them or any projects from which they derive income. Voters will need to disclose their conflict of interest during their review of projects in the voting process. For each project they review, badgeholders will see the option to disclose a Conflict of Interest. Projects for which a badgeholder has disclosed a Conflict of Interest will be removed from the badgeholders ballot.
Reporting
- To support the enforcement of rules, the Optimism Foundation will publish the Conflicts of Interests each badgeholder has disclosed following the end of the voting period.
- You may report any verifiable instance of a conflict of interest rule violation using the form linked here. Reports can be submitted up to Dec 18th. All discussions and reports should be in accordance with the Rules of Engagement
- For a report to be valid it needs to prove that a badgeholder has violated the Conflict of Interest rule. Information which is provided in a report needs to be timestamped and publicly verifiable.
Enforcement
- In the event any report is found to be invalid, the badgeholder will receive an attestation and may be ineligible to receive retroactive governance participant rewards for Round 5.
- If a Conflict of Interest rule violation has been identified, the badgeholder will be prohibited from participating for the remainder of Season 6. The badgeholder will not be eligible to receive Retro Governance Participation rewards in Season 6.
- If a Conflict of Interest rule violation has been identified and it’s the second violation, the badgeholder will lose their voting badge and be prohibited from receiving a new voting badge in Season 7.
Subject to Citizens’ House Veto
Before any enforcement decision is subject to Citizens’ House veto. Before any enforcement action is taken, the Foundation must post a proposal summarizing the reported Conflict of Interest rule violation and corresponding enforcement actions. The Citizens’ House will then have one week to veto any enforcement decisions proposed by the Foundation. If an enforcement action suggested by the Foundation is veto’d, no enforcement action will take place. New reports filed about the same instance will not be re-considered.