Organizational Structure

Even decentralized autonomous organizations need an org chart

Klima Foundation

As of KIP-53, KlimaDAO transitioned its underlying legal structure to a foundation model.

A number of benefits were realized by the project through this transition, as foundations offer unique operational and regulatory advantages:

• a more stable and enduring structure for KlimaDAO's goals, ensuring long-term impact and transparency.

• the possession of their legal identity, enabling them to hold assets, execute contracts, and engage in legal transactions independently, thereby simplifying governance, partnerships and decision-making processes.

• simplified KYC and KYB processes affording KlimaDAO the flexibility to integrate more effectively into the wider, dynamic business environment within the carbon and environmental commodity markets.

• reduced legal uncertainty during complex financial transactions.

• a continued and compliant commitment to KlimaDAO’s decentralized nature, which also allows for its dynamic governance process to continue evolving.

The transition to a foundation yielded several strategic advantages, allowing it to inherit the DAO’s existing asset management directives while streamlining governance, compliance, and operational efficiency.

An Overview of the Klima Foundation

The primary mission of the Klima Foundation remains the same as that of the DAO historically: to oversee a digital initiative focused on enhancing global decarbonization efforts. The Klima Foundation aspires to revolutionize carbon markets, environmental commodity markets and potentially establish a novel carbon-based monetary system.

The Foundation's primary purposes include promoting blockchain-related technology for carbon markets, supporting KLIMA Improvement Proposals (KIPs), producing educational materials related to decentralized autonomous organizations (DAOs) and blockchain technology, and facilitating commercial agreements aligned with these goals.

Alongside the generic and general initiative, the Klima Foundation is working on the development of the KLIMA DAO platform, operated through smart contracts. This platform empowers the KLIMA DAO community to collectively shape its future through decentralized voting. The Klima Foundation also recognizes and endorses contributions from individuals in strategy, IT, and law to promote environmental and climate policies.

The governance structure of the Klima Foundation will include a Board of Directors and the Guarantee Committee.

The President of Klima Foundation

The Board of Directors is overseen by the President of the Board. The president of the Board is ratified via Community vote, nominated by DAO contributors, and may be removed via KIP. The President will legally represent the DAO, and ensure that communication between its various stakeholders is efficient and effective.

The Board of Directors

The Board itself holds the powers for the operational management of the Foundation and plays a pivotal role in determining objectives, resource allocation, and financial management, analogous to the role Klima DAO’s Core and Stewards have previously fulfilled at the DAO (per KIP-19).

The directors are not required to be members of the Foundation or residents of its legal jurisdiction, allowing for a diverse and global representation. Directors serve at the pleasure of the appointing entities and are subject to removal by decentralized vote. They, whether acting individually or collectively, are entrusted with a fiduciary duty to uphold the best interests of the Foundation and the Protocol.

KlimaDAO’s founders will remain key stakeholders of the project, maintaining oversight of the Foundation and the DAO, and provide non-binding opinions regarding its progress to the Board and the Community – irrespective of whether they choose to continue on as a contributor of the project.

The Guarantee Committee

The Guarantee Committee is an office held within the Foundation, with the intention of ensuring robustness and integrity around KlimaDAO’s ongoing interactions with the carbon markets. Specifically, the Guarantee Committee is tasked with the thorough examination of RFCs brought forth from the market with regards to KlimaDAO’s carbon financing agreements.

The Guarantee Committee members are therefore expected to have significant knowledge and experience within the climate finance and environmental market domains. This Committee is positioned to shepherd the DAO’s initiatives within the climate finance space, and mitigate risks associated with these activities, considering factors such as technical, economic and reputational risks, and conflicts of interests that may arise within the market. The Community will have the opportunity to affirm new appointments to the Guarantee Committee, via a KIP.

The Committee's authority is exercised with the sole intention of advancing the DAO's interests, ensuring that its operations are not only efficient but also reflective of its core mission. Members of the Guarantee Committee are appointed for a tenure of three years, with the possibility of reappointment, signifying a long-term commitment to the DAO's vision and stability.

Therefore, the Guarantee Committee will have the ability to make recommendations to the community regarding carbon financing initiatives – however, it will not have the ability to make decisions on behalf of the community (i.e. a KIP will still be required to ratify financing agreements).

It is anticipated that the Guarantee Committee will at times work with the Klima Review Committee (defined in KIP-35) to progress or raise concerns around RFCs and KIPs specifically pertaining to climate finance.

Organs of the DAO

• Foundation President

• Foundation Directors

• Protocol Team: key contributors most of whom have been working on KlimaDAO since before launch. Establishes strategic vision and provide expert input on carbon markets and DeFi. Guides the DAO's decentralization plan and ensures functional teams are aligned on priorities, collaborate productively, and deliver on their objectives.

• Bounty Hunter: all applicants to be a DAO contributor automatically become Bounty Hunters. Bounty Hunters have access to the internal DAO bounty board, and are welcome to contribute to small projects and complete bounties without guaranteed compensation* - until a department has the resources to tap them in as a Bounty Contributor or Internal Contributor.

• Token Holders: core stakeholders of KlimaDAO, our Klimate community plays a critical role supporting the protocol’s growth and engaging in the governance process via discussion and voting.

• Partners: organizations who have established a relationship with KlimaDAO. Some Partners utilize our products and/or hold KLIMA on their balance sheets; some also contribute on joint initiatives.

Note: By default, bounties will only be available to licensed Bounty Hunters who have applied to work on a bounty and been assigned that bounty by a Protocol Team member. However, some bounties may be available to community members who have not been tapped in, and will be flagged as such. For example, the standing bug bounty for exploits that place funds at risk is available to any community member who follows the documented procedure for claiming that bounty.