Transparency should certainly be increased. There is a lot of room for improvement. There was a huge allocation of $1.4m of DAO funds to PNF recently. That payment should be noted down and fully traceable. ERA budget payout opened up a lot of room for possible spending misuse. Just for an example, $100k spending for a headhunting fee should be clearly traceable. Was it really $100k? Or was it $88k? How can the community unequivocally determine that the remaining $12k did not end up in PNF executive’s pockets? ERA budget will either resurrect or completely destroy Pocket. If funds are being misused, POKT will not make it but people responsible for managing this money might realize exorbitant financial benefit.
In order to successfully circumvent this problem and mitigate the risks arising from it, I wrote a way to successfully solve a known Agency Problem in the field of governance.
As in the corporate world, and even more so in the crypto realm, the goal is to eliminate the trust factor as much as possible, following the most famous rule: “Don’t trust, verify”. Accordingly, ensuring convergence of interests of PNF leaders and investors should be the primary goal encoded into Pocket DNA that will increase the trust of the community and investors in the activities carried out by PNF leaders.
I propose less burden on the managers regarding the decisions related to the spending of funds, but a significantly higher level of transparency and more importantly traceability of the spending of funds so that the reasonableness of the spending can be reviewed by the community. Goal is that community can challenge the PNF spending retroactively, preventing the possible favouritism and thus maintaining a high level of treasury management quality.