Transparency Report

Governance
1

Transparency report: Initial foundation setup

Introduction​

The establishment of The Superfluid Foundation, a Cayman Islands foundation company, was a critical first step in the establishment of the SuperfluidDAO (as defined below). The Superfluid Foundation serves the SuperfluidDAO community and is governed by it, aiming to foster the growth and development of the Superfluid ecosystem while remaining accountable to the community.

This document acknowledges the actions that were required in advance of the DAO setup in order to legally comply with registration and operational requirements. The Superfluid Foundation believes it is important for the community to understand all actions taken in the lead-up to SuperfluidDAO formation, and therefore seeks to describe documents and activities conducted by The Superfluid Foundation on the SuperfluidDAO’s behalf.

This document sets forth a transparent summary of what has occurred thus far; the structure of a decentralised autonomous organisation (the “SuperfluidDAO”), that is governed by holders of SUP tokens, responsible for fostering, developing, authorising and governing the SuperfluidDAO and its governance powers over The Superfluid Foundation.

Pursuant to the Constitution of the Superfluid DAO (the “Constitution”) and the bylaws of The Superfluid Foundation, the SuperfluidDAO has the ability to submit Superfluid Improvement Proposals (“SIPs”), vote on them and, if approved, implement them through on-chain execution or actions of The Superfluid Foundation.

Through the SIP process, the SuperfluidDAO is able to collectively decide and effectuate changes ranging from core protocol technology to non-technical decisions that otherwise impact the community and (SUP tokenholders. Throughout this transparency report below, it’s noted where decisions made during The Superfluid Foundation setup can be modified by an SIP, and the process for doing so.

1. Foundation Governance: Directors

As a Cayman Islands foundation company, The Superfluid Foundation is required to have at least one director responsible for the management and operation of The Superfluid Foundation, including, in particular, the approving and entering into contractual arrangements on behalf of The Superfluid Foundation. The directors was required to be appointed as part of the initial set-up of the Foundation.

The initial director(s) of The Superfluid Foundation are the following individual(s):

Marc Piano - LinkedIn profile: https://www.linkedin.com/in/marcpiano/

2. Initial Set-up Costs of The Superfluid Foundation and SuperfluidDAO and Initial Operating Funds

The Superfluid Foundation incurred pre-launch costs to set up the SuperfluidDAO and governance. The work included careful consideration and guidance of legal structures and technical expertise and development. This was done in the spirit of providing a safe, legal and technical framework to allow the SuperfluidDAO to self-govern on a trusted platform, and to allow for the safe transfer of the Superfluid protocol to the SuperfluidDAO from both a technical and legal perspective.

1 Billion SUP was minted at genesis, non-transferable, pending a SuperfluidDAO vote on a Constitutional SIP on the token transferability event Superfluid Protocol upgrade.

The tokens were initially distributed as follows:

  • Community: 60% (600,000,000 SUP)
    • SuperfluidDAO Treasury: 35% (350,000,000 SUP) will be streamed over three years to ecosystem applications and their users and grants, as determined by the SuperfluidDAO.
    • The Superfluid Foundation Treasury: 25% (250,000,000 SUP) will be retained by The Superfluid Foundation treasury for protocol maintenance, promotion (marketing and partnerships), SuperfluidDAO administration setup and registration fees, legal costs, director fees, funding near-term operating costs, contracting with third parties.
  • Investors: 15% (150,000,000 SUP) of which:
    • Following an unlock process, ⅓ distributed after a one-year cliff followed by the remaining ⅔ sent in a linear stream over two years
  • Team: 25% (250,000,000 SUP)
    • Follows the same release schedule as Investors

3. On-Chain DAO Governance

The governance structure was established in line with the Constitution

Governance powers breakdown​

  1. SUP Tokenholders

    1. SUP tokenholders, who make up the SuperfluidDAO, play the most critical role in the proper functioning of decentralised governance in the pursuit of a trustless, transparent and verifiable Superfluid ecosystem. As Superfluid is intended to be a public good, it is only right that governance over it should be directed by those for whom such public good is intended.
    2. SUP tokenholders have the ability to directly propose, vote on and effectuate on-chain SIPs.

  2. Security Council

    The Security Council role and elections are defined in the Constitution

    Members

  • The initial Security Council members, are as follows:

  1. XXXX is (list current / previous positions and experience) and WALLET

  2. XXXX is (list current / previous positions and experience) and WALLET

  3. XXXX is (list current / previous positions and experience) and WALLET

    Election

  • Security Council ongoing Election process is outlined in the Constitution
  • For absolute clarity, as laid out in the Constitution, the SuperfluidDAO may appoint and elect members of the Security Council and may even expand or reduce the powers of the Security Council through a constitutional SIP.

c) Superfluid Voting Protocol Procedure

The Constitution lays out the SIP process and voting procedures, as well as the various categories of SIPs and is not incorporated in this report.

There are several governance avenues available, each serving its own purpose.

  1. Discourse: is a discourse forum for governance related discussions. Community members must register for an account before sharing or discussing posts.
  2. Snapshot: is an off-chain voting interface that allows the community to signal sentiment on the proposed SIP.

Copyright © 2025 The Superfluid Foundation.

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