NePtar

POLICY FRAMEWORK

                                                                         Governance, Sustainability, and Institutional Integrity

1. Governance Framework

1.1 Decentralized Autonomous Organization (DAO)

Structure: NePtar’s governance operates within a bicameral system, involving two main bodies:

  • Community Assembly: Open to all $NTP token holders for proposal submissions and voting. One token grants one vote.
  • Expert Council: A handpicked group of cryptographers, economists, and ESG experts responsible for evaluating the feasibility of proposals from both technical and regulatory perspectives.

Voting:

  • Proposals require a 51% approval from the Community Assembly and 67% approval from the Expert Council to pass.
  • Critical updates, such as changes to the tokenomics framework, will require an 80% supermajority vote.

Tools:

  • On-chain voting is conducted using Realms (Solana DAO).
  • Off-chain signaling is facilitated through Snapshot.
1.2 Policy Enforcement

  • Smart Contract Audits: To ensure that governance decisions align with smart contract code integrity, quarterly audits are conducted by trusted firms such as Halborn or CertiK.

  • Penalties:

    • If unvested tokens are sold, a 25% tax is imposed, with proceeds directed to the ESG Reserve.
    • Proposals that are deemed malicious will incur a 5% slashing penalty on the proposer’s token holdings.

2. Tokenomics & Distribution

2.1 Supply Management

  • Fixed Supply: The total supply of $NTP tokens is capped at 21,000,000 tokens, as per the Solana SPL standard.

  • Deflationary Mechanics:

    • 0.5% of all transaction fees are burned quarterly to reduce supply over time.
    • Strategic buybacks are funded by 2% of the treasury yield.
2.2 Vesting Schedule

  • Post-Presale Unlocks: 2,000,000 tokens will be made available post-presale, with 50% of the total presale supply allocated for gradual distribution.

  • Team/Advisor Tokens: Tokens allocated to the team and advisors are subject to a 6- 12 month linear vesting schedule with a 24-month cliff.

2.3 Liquidity Provision

  • Stablecoin Pairings: 30% of liquidity will be allocated to USDC/$NTP pools to mitigate volatility.

3. Security Protocols

3.1 Infrastructure

  • Consensus: Solana’s Proof-of-History (PoH) combined with Byzantine Fault Tolerance (BFT) ensures robust, efficient validation.

  • Quantum Resistance: We are committed to maintaining future-proof security by implementing annual upgrades to NIST-approved post-quantum algorithms, in collaboration with ISARA Corporation.

3.2 Custody

  • Institutional Custody: Multi-Party Computation (MPC) wallets via Fireblocks and Anchorage Digital offer secure custody for institutional investors.

  • Retail Custody: Retail users can store their assets securely via hardware wallet integrations with Ledger and Trezor, incorporating biometric two-factor authentication (2FA).

3.3 Threat Mitigation

  • AI Surveillance: Real-time transaction monitoring using Chainalysis’s AML/CFT APIs helps mitigate Sybil attacks and ensure compliance with anti-money laundering (AML) standards.

  • Bug Bounties: Critical vulnerabilities can be reported through Immunefi with rewards of up to $500,000 for responsible disclosure.

4. Regulatory Compliance

4.1 FATF Travel Rule

  • Implementation: All transactions above $1,000 are tagged with originator and beneficiary data via Notabene to comply with the FATF Travel Rule.

  • Reporting: Monthly compliance summaries are submitted to FINMA (Switzerland) and the SEC (United States).

4.2 Tax Compliance

  • Tooling: Integration with TokenTax allows for automatic IRS Form 8949 generation to help users meet tax reporting requirements.

  • Withholding: A 30% tax will be withheld on transactions from U.S.-sanctioned addresses listed on the OFAC list.

5. Strategic Partnerships

5.1 Institutional Adoption

  • Custody: Fireblocks and Anchorage Digital are key institutional-grade custody partners for secure token storage.

  • Liquidity: Galaxy Digital OTC desk will facilitate bulk trades to support liquidity needs.

5.2 ESG Integration

  • Carbon Offsets: 70% of all fees contribute to the Toucan Protocol’s Base Carbon Tonne (BCT) to offset carbon emissions, ensuring that each transaction results in a measurable reduction of COâ‚‚.

  • UBI Pilots: NePtar has partnered with GiveDirectly to distribute $NTP to 10,000 unbanked individuals by 2028.

5.3 Technical Alliances

  • Oracles: Chainlink provides reliable cross-chain price feeds, ensuring accurate pricing for decentralized applications (dApps).

  • Interoperability: The Wormhole protocol enables seamless Ethereum/Solana asset bridging for broader ecosystem integration.

6. Sustainability & ESG Initiatives

6.1 Carbon-Negative Operations

  • Energy: Node operations are powered entirely by renewable energy sources, verified by the Energy Web Foundation.

  • Audits: NePtar conducts annual sustainability audits through S&P Global CSA to ensure alignment with environmental goals.

6.2 Social Impact

  • Education: 5% of NePtar’s treasury funds are allocated to decentralized education initiatives such as Gitcoin-style grants.

  • Diversity: 30% of grants will be dedicated to supporting developers in the Global South, promoting inclusivity in the blockchain space.

7. Risk Management & Disclosures

7.1 Market Risks
  • Volatility Hedging: NePtar hedges 20% of its treasury via Bitcoin Futures (CME) to mitigate potential market volatility.
7.2 Technical Risks
  • Contingency Fund: 10% of the treasury is reserved for protocol upgrades or forks, ensuring long-term technical stability.
7.3 Legal Risks
  • Jurisdiction: The Swiss Foundation structure (based in Zug) provides regulatory neutrality, minimizing legal risk exposure across different jurisdictions.

8. Policy Amendment Process

  • Proposals: Governance proposals may be submitted by the Expert Council or the Community Assembly.

  • Ratification: Proposals require a 75% approval across both governance bodies to be ratified.

References

  1. World Bank. (2023). Global Cross-Border Payment Flows.
  2. NIST. (2022). Post-Quantum Cryptography Standardization.
  3. Toucan Protocol. (2023). Base Carbon Tonne Methodology.
  4. FATF. (2021). Guidance on Virtual Assets and VASPs.

NePtar Foundation
Treviso | Sheringham | Zug | Singapore | Tokyo | Palo Alto