“Faith fills the gap where empirical knowledge cannot reach.”

–Immanuel Kant

Trust is rooted in evidence and experience. It emerges naturally and subconsciously when evidence is consistent and reliable. A deliberate denial of trust feels like self-deception because it contradicts lived reality.

For open source developers working on Aleo, the lived reality must be one that demonstrates consistent and reliable evidence there’s no proprietary exploitation or corporate agenda, that the protocol is sustainable with constant ecosystem growth which is prioritized over short-term profits, and that it can resist pressures like shareholder demands or profit maximization strategies for single individuals or companies that may conflict with community interests.

The Aleo Foundation spent considerable time and resources building the infrastructure for it to manage and maintain the core source code. Before this happened, there were considerable barriers to open-source participation as community contributions regularly floundered. For the community of contributors, it was a breath of fresh air as transparent governance took root.

It is our hope that this continues. We believe transparency, auditability, and fair open-source governance will continue to be the standard for Aleo. The investment in broad ecosystem development that benefits everyone must continue.

non-profits benefit open source projects

Using a non-profit organization to own and manage cryptocurrency code repositories can provide several benefits, particularly for projects aiming to foster community trust, decentralization, and sustainable growth.

Here are the key advantages:

1. Enhanced Trust and Credibility

• Neutral Stewardship: Non-profits are perceived as impartial entities that prioritize the project’s mission over profit-making. This fosters trust among developers, users, and investors.
• Transparency: Non-profits are often required to operate transparently, providing financial and operational disclosures that can reassure the community about the project’s governance.

2. Alignment with Decentralization Goals

• Avoiding Centralized Control: Non-profits can act as custodians for repositories, ensuring no single for-profit entity has undue influence over the code or development direction.
• Encouraging Community Contributions: Community members may feel more comfortable contributing to a project owned by a non-profit, as there is less concern about proprietary exploitation or corporate agendas.

3. Sustainability and Long-Term Focus

• Mission-Driven Development: Non-profits are more likely to prioritize long-term goals, like protocol sustainability or ecosystem growth, over short-term profits.
• Resilience Against Corporate Pressure: By separating repository ownership from for-profit entities, projects can resist pressures like shareholder demands or profit maximization strategies that may conflict with user interests.

4. Reduced Regulatory Risks

• Lower Perception of Securities Risk: Projects managed by non-profits may be less likely to face accusations of issuing securities, as they can emphasize their decentralized and non-commercial nature.
• Regulatory Shielding: A non-profit structure signals a focus on community and public benefit, which can mitigate regulatory scrutiny compared to for-profit corporations.

5. Encouraging Broader Ecosystem Collaboration

• Open Governance: A non-profit can establish collaborative decision-making frameworks, encouraging participation from diverse stakeholders, including businesses, developers, and academics.
• Funding Opportunities: Non-profits can attract grants and donations from other non-profits, government agencies, or philanthropic organizations, which may not be available to for-profits.

6. Mitigation of Fork Risks

• Reduced Perception of Exploitation: With a non-profit custodian, there is less risk of a community or developer fork due to perceptions that the project’s codebase is being exploited for private gain.
• Centralized Neutrality: A non-profit ensures that changes or updates to the repository are evaluated based on merit rather than profit motives, reducing conflict within the ecosystem.

7. Tax and Funding Advantages

• Tax-Exempt Status: Many non-profits qualify for tax-exempt status, reducing operating costs and enabling more resources to go toward development.
• Diverse Funding Sources: Non-profits can leverage a broader range of funding models, including donations, grants, and partnerships, which may not be as readily available to for-profits.

examples of successful non-profit models

• Ethereum Foundation: Ensures Ethereum’s development remains decentralized and mission-driven, even as for-profits like ConsenSys contribute heavily to the ecosystem.
• Stellar Development Foundation: Oversees the development of Stellar with a focus on financial inclusion, avoiding profit-driven decisions that could harm its mission.
• Interchain Foundation (Cosmos): Manages the development of Cosmos while encouraging participation from for-profits like Tendermint Inc.

challenges to consider

• Funding Stability: Non-profits may struggle to secure consistent funding without the revenue streams available to for-profits.
• Operational Bureaucracy: Decision-making can become slower in non-profits due to a need for consensus and adherence to governance processes.
• Dependency on Key Individuals: Non-profits often rely on founding members or initial donors, which can lead to vulnerabilities if these individuals leave or withdraw support.

Using a non-profit to own the repositories is particularly beneficial for projects that prioritize decentralization, community trust, and regulatory compliance. However, the choice ultimately depends on the project’s goals, governance preferences, and funding strategies.

demonstrating trust

Now, the community will be observing what is demonstrated by the Foundation and those that contribute to the project. Every observer will not have a choice, as elaborated in the preamble of this post, about whether or not to trust the governance of the Aleo project, even if they desperately, in their heart of hearts, desire to do so. If the Foundation and the core contributors have demonstrated deliberate, transparent actions worthy of trust, then the community and ecosystem will indeed act in accordance to that unquestionable trust.

If, however, self-interested parties who do not have the best interests in mind of the overall success of the community deliberately gate-keep, hide, or fail to drive the project forward by rejecting transparent open-source governance, then trust will have been destroyed or made impossible. Contributing developers will face the feeling of self-deception in choosing to contribute to a project that clearly does not have the best interests of the community in mind. They will devote their efforts elsewhere. The Aleo project will fail.

We at MONADIC.US will continue to act in good faith in order to build the trust of the community. We will strive for open governance and transparent contribution. It is our hope that the Aleo Foundation continues to endeavor to make transparency, auditabiltity, and positive contributor responsiveness an utmost priority for the project.