791

Community Pool Spend

The full text of this proposal is available via IPFS link: [Hidden link] Please visit [Hidden link] for translations of the full text available in the following languages: Simplified Chinese, Traditional Chinese, Korean, Japanese, French, Russian and Spanish. Recipient: Grace Yu Legal Defense Team Amount: 50,000 ATOM (~approx $610,000 at current prices)

Summary:

On 3/23/23, All in Bits, Inc., (AiB) filed a legal complaint against Grace Yu, a former AIB contractor, for the alleged breach of a mutual non-disparagement clause. AiB seeks damages to be determined at trial, and asks the amount be “not less than $150,000.”

In our view, the lawsuit initiated by AiB constitutes a tortious act, which may result in unwarranted scrutiny and legal implications for $ATOM and the Cosmos network. Let it be known that AiB has filed and financed a frivolous lawsuit against a community member utilizing funds given to them for the assumed propagation and development of open-source software.

It is our utmost concern that AiB initiated this legal action without a sound basis in a federal court lacking genuine jurisdiction, rendering the Cosmos network vulnerable to ramifications of AiB’s pleadings that declare the core technology framework to be both centralized and dominated by a founding Cosmos entity.

In light of this negative precedent established with AiB’s lawsuit, the objective of this proposal is to rectify the situation with a positive, restorative precedent. This proposal is designed to lend unequivocal support to Grace – for her fortitude in prioritizing the public interest in our public goods, over the limited interests of a private entity.

At this critical growth juncture, it is paramount that we assertively demand radical transparency from our founding organizations; however, this goal is rendered unachievable when tort systems are exploited to effect intimidation and harassment.

We earnestly implore the community to consider the full contents of this proposal, as its approval will signify and secure a commitment of resources needed to defend Grace and provide evidence to the American fiat courts that the Cosmos ecosystem – that our code and our culture, are truly decentralized products and experiences.

The full text of this proposal is available via [Hidden link]*

*Objective:

Based on projected costs provided by law firms, we are requesting 50,000 ATOM to secure competent legal representation for Grace Yu. Grace will be seeking reimbursement for all legal costs and expenses from AIB. Grace will work with Notional for any remittance/reimbursement of funds back to the Cosmos Hub community pool.

As of 4/5/23, AiB has communicated that in the event the Cosmos Hub passes a funding proposal for Grace’s legal defense fund, AiB “will reimburse the Cosmos community for the portion used.”

In the event the outcome of a settlement or a trial works in favor of the petitioner, and damages are awarded to AiB; Grace will not use any of the funds allocated to pay for damages. Funds allocated will be used strictly for her legal defense, only.

Arrangement:

In the circumstance of successful passage of this proposal, the liquidation of ATOM will be executed in two tranches. The initial tranche will entail 25,000 ATOM which are to be converted into USDC by the undersigned parties of the multisig wallet after obtaining 2/3 authorization. Should the motion to dismiss the lawsuit prove to be unviable, this will trigger the second and concluding tranche which will liquidate the remaining 25,000 ATOM.

In the situation whereby AiB withdraws the lawsuit, and no legal costs and fees are awarded, the remainder of the designated legal funding, and its unspent balance will be duly restored to the hub.

1.In the event the lawsuit settles, and Grace is awarded legal costs and fees without personal or compensatory damages, she will use those funds to reimburse the community pool in full, and will not retain any of the payment until the community pool is fully reimbursed. 2. In the event Grace is unable to claim reimbursement of legal fees from AiB, and should there be unused funds remaining at the conclusion of the matter, she will return the balance of the funds using MsgFundCommunityPool. 3. In the event Grace is awarded any personal and compensatory damages, separate from legal costs and fees, she will remit 33.33% of awarded damages (post tax) back to the hub, any reimbursement of legal costs and fees, in addition to any balance remaining from her her legal defense fund using MsgFundCommunityPool.

Note on flow

i. This proposal seeks 50,000 ATOM ii. The multisig group will transfer ATOM to Osmosis to convert ATOM to USDC. iii. USDC will be sent to Grace’s law firm via Bitpay transaction. iv. Grace’s law firm will provide a written letter to confirm receipt of funds, and that letter and redacted invoices will be uploaded to the Cosmos hub forum. Redactions are necessary to protect the attorney-client privilege, as well as Grace.

Transparency

Monthly legal invoices will be uploaded to [Hidden link]. Narrative descriptions of work performed on the invoices will be redacted to preserve privacy, along with work-product and attorney-client privileged information. Once the matter of AiB v Grace Yu is settled, Grace will provide a report as to how the funds were spent. Providing a transparency report during the course of litigation would compromise the discretion her legal team requires to execute on tactical objectives and could waive the attorney-client privilege.

Why We Need to Fund #FreeGrace #dropthelawsuit:

• Cosmos is an assemblage of software components that operate under the open source model.
• Compliance with regulatory requirements necessitates the decentralization of Cosmos code.
• Open-source developers are afforded the privilege of seamlessly migrating their work alone or under the auspices and sponsorship of different organizations; hence, any practice that opposes open-source tenets, such as the AiB modus operandi, is not only contrary to established open-source norms but also undermines the fostering of an innovative culture that is indispensable for the competitive propagation of software code.
• Multilateral contributions to open source software frameworks is perceived as an indicator of maturity and resilience. An increase in diverse contributions to open-source software amplifies its reach, thereby guaranteeing a more thorough review process. This is in line with the well-known adage that “more eyes make for fewer bugs.”
• Due to Grace’s advocacy, a former Tendermint and Ignite contributor, Denis Fadeev is now free to engage in activities of his choosing – including the ability to continue work on the project he created independent of AiB. This outcome is attributable to Denis’ persistence, supported by the efforts of the #FreeDenis community facilitated by Grace Yu.
• While we recognize that the values of the Cosmos may not appear coherent at first glance, there is a fundamental alignment that we all share. This alignment, is the inalienable right to freedom of speech, and the freedom of expression.
• Protecting these freedoms are necessary to evince an alternative decentralized financial system dependent on radical transparency, accountability, open-source, and decentralization for legitimacy and resilience.
• The Cosmos Hub will be exercising its sovereign authority to protect a community member from a founding organization in a manner that is both unprecedented and essential to preserving the values vital to the Cosmos vision.
• The Cosmos Hub would indirectly assert itself in a matter being adjudicated in a fiat court, in the prestigious Eastern District of New York.

Multisig Address cosmos17p0ssxp4dwnr4qvs7kgm4currxfmaatkh4gcl3

Signers:

Greg Osuri, Akash Mike Purvis, Croncat John Macleod, ConsensusOne Validator

*Note

This proposal represents the opinions of the draftees and is based upon draftees’ understanding of the events, and or, in addition to the understanding that has been set forth in the lawsuit. Draftees consist of various members of the Cosmos community. The proposal was first shared on Cosmos Hub Forum on 4/1/23 by Jacob Gadikian. The Google document link for the proposal has remained live and public at all times. Although the pre-proposal was shared by Jacob Gadikian, he is not the principal author of the proposal. This proposal is a product of a grassroots community effort.

What do the voting options mean?

1. Yes: Approval of the proposal in its current form.
2. No: Disapproval of the proposal in its current form.
3. Abstain: The voter wishes to contribute to quorum without voting for or against a proposal.
4. NoWithVeto: A ‘NoWithVeto’ vote indicates a proposal either (1) is deemed to be spam, i.e., irrelevant to Cosmos Hub, (2) disproportionately infringes on minority interests, or (3) violates or encourages violation of the rules of engagement as currently set out by Cosmos Hub governance.

The full text of this proposal is available via [Hidden link]