SPOCRA: Re-location Fund for SPOs

SPOCRA contingency plan for this real disaster threat is to support key community SPOs with funds set aside for re-location.

The SPOCRA body consists of highly experienced stake pool operators possessing a broad range and depth of skillsets.

Disaster Recovery Funds

Setting aside funds that will be held for the purpose of helping SPOs recover in the event of a disaster scenario such as key SPOs shutting down their operations if adversarial regulations are passed that make it impossible for SPOs to operate legally. SPOCRA can allocate funds to help re-locate SPOs from a jurisdiction that passed disastrous regulations. 

The funds allocated to aid SPOs in the event of a regulation disaster would be held in a separate ADA wallet to appreciate over time. In the event SPOs need to tackle the risks associated with operating in a location that make it illegal to run a pool an application would be submitted to the SPOCRA board or eventually a request through a smart contract would be submitted to SPOCRA to request funding. Note: the funds allocated to disaster recovery would be solely for the purpose of holding in the event they are needed to aid SPOs in relocation and would not be used in the development of a smart contract or governance system. 

Education and Research (Preparedness) Funds

In addition, funds will be used for the purpose of education and research for viable relocation options. This would include research into the laws of potential jurisdictions that SPOs can move into as well as the costs & requirements to establish residency.  Funds allocated to research would be paid to professionals that provide relocation as a service to provide this information to SPOCRA.  

Understanding the processes of the various potential nations to relocate as efficiently as possible will be key to preparing for a disaster event such as adversarial regulations being passed into law. 

Legal Counsel & Defense Funds

Lastly, funds would also be used for lawyer fees to provide legal consultation to SPOCRA as the trade association is being established. Understanding the legal landscape and what potential laws/ regulations/ tax codes implicate for SPO businesses is still a gray area in most countries. Laws passed in the United States have a greater chance of influencing laws passed in other countries. There is not a dedicated law office proficient in matters concerning the blockchain space for SPOs that can identify potential threats and work to establish regulatory clarity & educate lawmakers so they do not create scenarios that would put SPO business owners at risk of running a stake pool operation illegally.

As a non-profit trade association for the stake pool operation industry SPOCRA must ensure we are operating according to laws and regulations pertaining to blockchain, cryptocurrency and stake pool operations. Our legal counsel provides SPOCRA with the most immediate updates concerning potential threats in the legal landscape of the blockchain space that can be accurately interpreted and disseminated to the entire SPO community.

Holding a lawyer under retainer for SPOCRA provides us with legal counsel over the ambiguous laws/ regulations in the blockchain space.  This means identifying and providing clarity on novel, emerging threats to the Cardano ecosystem as events unfold, i.e., potential laws being passed that can prohibit SPOs from running their businesses in the US legally would be a major assault on the backbone of the Cardano ecosystem if the result would mean many SPOs shutting down their operations.

These legal funds would also be held and used for addressing legal matters arising for community SPOs in the event of state & federal investigations or the need for regulatory defense.  Providing legal defense could benefit the entire SPO community where such cases could have cascading effects on shaping the laws in nations and states around the world regarding running a stake pool operation. 

Definition of Success:

Ultimately not needing to use these funds as the result of a disaster would be ideal. However, in the event a disaster does occur distributing funds to help key community SPOs recover successfully. Being prepared with the knowledge required, funds and professional help to react as quickly as possible to mitigate the disaster event assisting SPOs in relocation would mean success.

3 months

Acquiring professional help to acquire the information on most viable relocation possibilities and best methods to make this happen quickly. 

6 months

Providing educational content to the community to better prepare the SPO base in the event of adversarial regulation in specific jurisdictions. More operators preparing now with additional options for citizenship status would mean success for the entire Cardano ecosystem as this would mitigate the risk of a disaster such as many SPOs shutting down their operations. 

12 months

Established emergency communication channels to aid in the relocation of SPOs in the event of adversarial regulation passed into law. Legitimate preparedness and relocation processes laid out and proven through use by community SPOs.  

Budget:

$40,000 - Disaster recovery - held for the purpose of providing re-location assistance to community SPOs. 

$20,000 - Disaster preparedness - research & education into the best relocation spots and most efficient methods. 

$20,000 - Disaster defense - lawyer retainer fee for legal consultation and holding of funds for future legal aid.

Auditability:

All SPOCRA transactions can be viewed on Cardano blockchain explorers via searching for the public wallet address used to hold funds and create transactions.