The Filecoin network has reached a critical moment in the blockchain industry. In order to rekindle the enthusiasm of network participants and unite the consensus of community members, the community needs Protocol Labs(PL) and Filecoin Foundation (FF) to improve financial and operational transparency.

At present, the number of tokens belonging to PL and FF has greatly exceeded the total amount of tokens mined by the Filecoin storage provider (SPs) community. With the increase of FIL, the community also needs transparent financial planning to bring confidence in priorities and the expectations of token holders. Involving community members in governance, operational priorities, financial planning and financial auditing will help to strengthen the correct use of network resources, and build community confidence and consensus.

1.Clarify the roles and responsibilities of PL and FF: the principle of Filecoin Foundation as a blockchain project foundation. Protocol Labs is the core developer of Filecoin network. Even if the foundation is registered as a commercial entity in the United States, it should act like a non-profit organization or a software foundation and define its status. Its main responsibility is to ensure the future funds of the network and help the community manage the changes of the network (not letting the core members control this process) and the ecosystem prosperity of the Filecoin network. The long-term goal of the foundation is to obtain the existing FIL tokens and independently support the work of any team developed on the Filecoin network. Protocol Labs needs to use its existing FIL tokens to continue to promote the core development of Filecoin protocol, make it more secure and have higher performance, and provide funds for the development of Web3.0 related protocols. In the long run, foundations and laboratories should not be the only contributors and leaders of Filecoin, but a part of the entire ecosystem of Filecoin.

2. Clarify the liquidation process of PL and FF: PL and FF shall publicly disclose the liquidation process of acquired tokens on which their daily operations depend. Excess tokens or assets should be locked or restricted until the financial plan for the next fiscal year is approved by the community that granted the new clearing quota.

3. Transparent financial and operational planning: PL and FF foundations should make financial plans for each fiscal year and submit them to the community for discussion and voting approval. Publish financial statements every 6 to 12 months and be audited by the community or the third party. Audit reports shall be disclosed regularly.

4. Disclosure of current token holdings: fully disclose the address and quantity of all tokens. Future liquidation plans need to be in line with finance and planning. A planned liquidation amount (annual and monthly) and a detailed ownership balance management plan (disclosure of ownership address and quantity) are required. After being approved by the community, liquidation plan appoints a financial manager who is responsible for reporting the number of tokens that have been liquidated and are to be liquidated and the amount of liquidation every month;

5. We strongly appeal to Protocol Labs and Filecoin Foundation to work together to share the transparency of their respective FIL tokens, formulate a clear liquidation process, and allow the community to participate/approve the plan and be audited. As one of the largest single holders of FIL tokens, Protocol Labs should shoulder the responsibility, demonstrate its long-term planning for the Filecoin network and its long-term commitment to the Filecoin community, and jointly promote the sustainable development of the web3 storage network.

In-depth interpretation of the proposal: discussion on financial and operational transparency of Protocol Labs and Filecoin FoundationWith the rapid development of blockchain technology, Protocol Labs and Filecoin Foundation, as important participants and promoters in the Web3.0 era, their financial and operational transparency is not only related to their own reputation, but also directly affects the health and development of the entire Filecoin ecosystem. The purpose of this proposal is to clarify their roles and responsibilities, standardize their financial and operational behaviors, and promote the sustainable development of Filecoin network.

First, clarify the roles and responsibilities of PL and FFAs the principle of the blockchain project foundation, the Filecoin Foundation is not only a simple fund manager, but also a leader of network development and a promoter of community construction. Being registered as a commercial entity in the United States does not mean that it can deviate from the nature of its non-profit organization. On the contrary, foundations should be more strict with themselves, ensure the safe and rational use of network funds, help communities manage network changes, prevent core members from abusing their power, and promote the prosperity of the Filecoin ecosystem.

As the core developer of Filecoin network, Protocol Labs has a great responsibility. While promoting the core development of Filecoin protocol, we should not only ensure the security and high performance of the network, but also provide financial support for the development of related protocols of Web3.0. This role orientation means that Protocol Labs can not only focus on its own interests, but also grow together with the entire Filecoin ecosystem and become an indispensable part of it.

Second, openness and transparency of the liquidation processLiquidation process is an important embodiment of financial and operational transparency. PL and FF should publicly disclose the liquidation process of acquired tokens on which their daily operations depend, which will not only enhance trust, but also help the community to better understand the use of funds. Excess tokens or assets are locked or restricted. This measure can effectively prevent the abuse of funds and ensure that every fund is used in the cutting edge. The next fiscal year’s financial plan is approved by the community before the liquidation quota is granted. This process ensures the community’s right to participate and make decisions, making the liquidation process more fair and reasonable.

Third, the transparency of financial and operational planningThe financial plan of each fiscal year is submitted to the community for discussion and voting approval, which is an important embodiment of financial transparency. It not only gives community members the opportunity to participate in financial decision-making, but also ensures the rationality and feasibility of financial plan through collective wisdom. Financial statements are published every 6 to 12 months and are audited by the community or the third party. This regular supervision and review mechanism can find and correct possible problems in time and ensure the standardization and transparency of finance and operation.

Fourth, the full disclosure of the amount of tokens held.The disclosure of token holdings is an important part of financial transparency. The full disclosure of the address and quantity of all tokens can let the community members know the distribution of tokens, thus enhancing their trust in PL and FF. The future liquidation plan is in line with finance and planning, which means that liquidation is not arbitrary, but has clear plans and goals. Planned liquidation amount and detailed ownership balance management plan, these measures ensure the rational use and planning of funds and prevent the waste and loss of funds.

Fifth, make joint efforts to promote the sustainable development of Web3 storage networkAs one of the largest single holders of FIL tokens, Protocol Labs shoulders the responsibility to show its long-term planning for the Filecoin network and its long-term commitment to the Filecoin community, which is not only its responsibility as a core developer, but also its vision and responsibility for the Web3.0 era. By sharing the transparency of FIL tokens, formulating a clear liquidation process, allowing the community to participate in and approve the plan, and accepting the audit, Protocol Labs and Filecoin Foundation jointly laid the foundation for the sustainable development of Web3 storage network.

To sum up, this proposal aims to improve the financial and operational transparency of Protocol Labs and Filecoin Foundation by defining the roles and responsibilities of PL and FF, standardizing the liquidation process, realizing the transparency of financial and operational planning, fully disclosing the amount of tokens held, and making joint efforts to promote the sustainable development of Web3 storage network. This not only helps to enhance the trust of community members, but also promotes the health and development of the entire Filecoin ecosystem, laying a solid foundation for the arrival of the Web3.0 era.