Decentralized Cloud Foundation Operational Expenses

[hewi333]

Decentralized Cloud Foundation Operational Expenses

Background

The Akash Network has operated as a self-sustaining blockchain for nearly five years, growing through open-source collaboration and community governance. As regulatory frameworks mature in the crypto industry, Akash must adapt to maintain compliance and minimize risk while preserving its decentralized nature.

The Decentralized Cloud Foundation (DCF) has existed since Akash's inception and aims to take a more active role in the network's execution. This proposal requests funding for the DCF's annual operational expenses, estimated at $382,500.

The Foundation's Role

With governance fully on-chain, the DCF bridges community decisions and professional implementation—a critical evolution toward greater decentralization and regulatory compliance.

Benefits to the Akash Community

Enhanced Transparency & Accountability

• Standardized reporting by independent third-party providers
• Professional financial operations and custody services
• Clear audit trails for all community funds

Regulatory Compliance

• Alignment with emerging regulatory frameworks
• Professional foundation structure following industry best practices
• Reduced regulatory risk for the entire ecosystem
• Tax-advantaged structuring

Community Empowerment

• Infrastructure for potential community grant programs similar to other major crypto projects
• Professional fund management for significant community initiatives

Governance Structure

The DCF operates under a 5-director board ensuring proper oversight and diverse expertise:

• 3 Cayman Islands Directors: Experienced professionals from Horizons Global and Leeward Management specializing in compliance and fiduciary responsibility
• 2 Overclock Labs Executives: CEO and COO providing continuity and technical expertise

Annual Budget

Item	Details	Annual Cost
Cayman Directors	$25,000 per director (3 directors)	$75,000
Overclock Directors	$10,000 per director (2 directors)	$20,000
FinOps Service Provider	Custody, payments, accounting, reporting	$150,000
FinOps Implementation	One-time setup fee	$12,500
Legal Reserve	Compliance and legal services	$75,000
Operational Buffer	Contingency for unexpected expenses	$50,000
Total Annual Cost		$382,500

Impact on the Community

What's New

• Professional fund administration for major initiatives and Overclock Labs proposals
• Foundation infrastructure for structured community grant programs (similar to other major crypto projects)
• Enhanced transparency through independent third-party reporting

What Remains Unchanged

• Community-driven governance process
• Proposal submission and voting mechanisms
• Akash protocol development and operations

Why This Transition Matters

DCF will fulfil its role by providing professional infrastructure for Akash Network's continued work with Overclock Labs and the Akash community, creates redundancy to eliminate single points of failure, and builds the infrastructure for future community grant programs similar to those found in other major crypto ecosystems.

[rodri-r]

I am a bit familiar with similar foundations in other major crypto projects and I believe this is a wise step to further grow Akash Network while also improving compliance.

I believe this will benefit Akash, especially if the Overclock Directors for this foundation are Hewi and/or Cheng, who have proven their skills and I am sure they will work towards aligning this foundation to benefit Akash and the entire community.

[31trainman]

I fully support this and am happy to help however I can.

[KamuelBob]

How is the Decentralised Cloud Foundation related to the Akash Foundation (for example referenced here) and what is its relationship with Overclock Labs (e.g. is it "managed" by Overclock Labs)?

Will this result in funds being custodied by DCF instead of OCL when released from the Community Pool?

So to summarise in layperson terms, the Foundation has always existed, but will be taking a more active role in Community Pool spend management to reduce the compliance risk of OCL being the "owner of Akash Network". Is that an accurate reflection?

@heyhewi, why do you think this is a valid request of Community Pool funds and not the responsibility of the foundation to fund with its own AKT (or from its staking rewards)?

[hewi333]

Hi @KamuelBob,

As always, thank you for your comments and attention to detail on this. Answering in order:

1. The Decentralized Cloud Foundation is the sole foundation, part of all this is to get correct nomenclature moving forward. Overclock Labs has a service agreement with the DCF to help fulfill the direction (vote) of the community.

2. I don't want to say all, but most funds from major proposals will be held by the DCF on a multisig but the custodian should be called out in each prop.

3. Correct - this is the proper structuring to reduce compliance risks across the project and aligns with other major projects.

4. I'll defer to Overclock Labs on the last item.

Hope this helps!

[KamuelBob]

Thanks @heyhewi,
Blocc Dynamics have voted in favor of this proposal.