Documentation

Governance - Foundation

SuperNova Foundation

Executive Summary

The SuperNova Foundation is established as a Swiss non-profit foundation to govern the decentralized SuperNova blockchain, manage the environmental initiatives, and oversee token distribution. This document outlines the foundation's structure, governance model, token allocation, and operational guidelines to ensure transparency and accountability.

The foundation's primary mission is to promote the development and adoption of the SuperNova blockchain while ensuring its environmental goals are met. As a Swiss-based entity, the foundation benefits from Switzerland's clear regulatory framework for blockchain organizations, legal stability, and favorable treatment of non-profit entities engaged in technological innovation.

1. Foundation Structure and Governance

1.1 Legal Structure

The SuperNova Foundation is established as a Swiss foundation ("Stiftung") under Articles 80-89a of the Swiss Civil Code, registered in Zug, Switzerland. The foundation is established with an initial endowment and is governed by:

  • Foundation Council: 5 members with diverse expertise
  • Executive Team: Responsible for day-to-day operations
  • Technical Committee: Oversees protocol development
  • Environmental Committee: Manages environmental initiatives

1.2 Foundation Council

The Foundation Council is the highest governing body and includes:

| Position | Expertise | Responsibility | | -------- | --------- | -------------- | | President | Blockchain Governance | Strategic leadership | | Vice President | Sustainability | Environmental initiatives | | Treasurer | Financial Management | Financial oversight | | Secretary | Legal & Compliance | Regulatory compliance | | Council Member | Technical Development | Protocol development | | Council Member | Business Development | Ecosystem growth | | Council Member | Community Representative | Community representation |

The initial council members are appointed for a 3-year term with a potential for one renewal, ensuring a balance between stability and fresh perspectives.

1.3 Governance Process

The Foundation operates through a transparent governance process:

  1. Regular Meetings: The Council meets quarterly with interim monthly reports
  2. Decision Making: Major decisions require a qualified majority (3/5 votes)
  3. Proposals: Formal proposal system for changes to protocol or treasury
  4. Transparency Reports: Quarterly reports on activities and financials
  5. Environmental Audits: Annual carbon accounting and disclosure
  6. Regulatory Compliance: Ongoing legal review of activities

1.4 Committees

Technical Committee

  • Oversees protocol development and technical roadmap
  • Reviews improvement proposals
  • Coordinates with external developers and contributors
  • 5 members with specific technical expertise

Environmental Committee

  • Manages carbon negativity initiatives
  • Oversees REC and carbon offset purchases
  • Reviews environmental impact reports
  • Proposes adjustments to environmental treasury allocations
  • 5 members with environmental and energy expertise

Treasury Committee

  • Manages foundation assets and token reserves
  • Oversees operational expense budgeting
  • Approves token sales for funding operations
  • 5 members with finance and treasury management experience

2. Token Allocation and Distribution

2.1 Initial Token Allocation

SuperNova features a total supply of 42,000,000 NOVA tokens allocated as follows:

| Allocation Category | Percentage | Amount (NOVA) | Vesting/Release | |---------------------|------------|---------------|-----------------| | Mining Rewards | 40% | 16,800,000 | Released through mining over ~20 years | | Foundation Reserve | 13.5% | 5,670,000 | 10% at launch, 90% with 5-year vesting and 1-year cliff | | Ecosystem Development | 15% | 6,300,000 | 4-year vesting with 6-month cliff | | Team & Advisors | 15% | 6,300,000 | 4-year vesting with 6-month cliff | | Environmental Treasury | 10% | 4,200,000 | 20% at launch, 80% released based on carbon metrics | | Community & Airdrops | 4.5% | 1,890,000 | 50% at launch, 50% over 2 years | | Liquidity Reserve | 2% | 840,000 | 30% at launch, 70% over 2 years |

2.2 Mining Rewards Distribution

The 40% allocated to mining rewards is distributed through a proof-of-work mechanism with the following characteristics:

  • Initial block reward: 50 NOVA
  • Halving schedule: Every 840,000 blocks (approximately 4 years)
  • Mining difficulty adjustment: Every 2016 blocks
  • Environmentally adjusted rewards: Miners using verified renewable energy receive up to 20% additional rewards

2.3 Foundation Reserve

The 13.5% allocated to the Foundation Reserve is managed by the Treasury Committee with strict guidelines:

  • Initial Release: 10% at mainnet launch (567,000 NOVA) to fund day one operations
  • Used to fund long-term foundation operations
  • Major expenditures require approval from both the Treasury Committee and Foundation Council
  • Maximum annual spending cap of 15% of remaining reserve
  • Quarterly public reporting of usage
  • Any unused tokens remain in treasury for future foundation activities

2.4 Ecosystem Development

The 15% allocated to Ecosystem Development is used for:

  • Grants for developers building on SuperNova
  • Hackathons and educational initiatives
  • Integration partnerships with other protocols
  • Marketing and awareness campaigns
  • Exchange listing fees and market making

2.5 Team & Advisors Allocation

The 15% allocated to Team & Advisors is distributed to:

  • Core development team (8%)
  • Founding team (4%)
  • Advisors and early contributors (3%)

This allocation follows varying vesting schedules over a 4-year period, with cliff periods ranging from 6 months (founding team) to 1 year (core development team and advisors). Team members departing before their vesting period completes will have their unvested tokens returned to the Foundation Reserve.

2.6 Environmental Treasury

The 10% allocated to the Environmental Treasury is managed by the Environmental Committee and is used exclusively for:

  • Purchase of Renewable Energy Certificates (RECs)
  • Funding verified carbon offset projects
  • Grants for renewable energy mining research
  • Environmental impact reporting and auditing
  • Direct investment in green mining infrastructure

Tokens are released from this allocation based on verified carbon negativity metrics, with stricter requirements over time.

2.7 Community & Airdrops

The 4.5% allocated to Community & Airdrops is distributed through:

  • Community incentive programs
  • User adoption campaigns
  • Proof-of-participation airdrops
  • Protocol usage rewards
  • Stakeholder governance participation

2.8 Liquidity Reserve

The 2% allocated to the Liquidity Reserve is managed by the Treasury Committee and is used for:

  • Initial liquidity provision on DEXes
  • Professional market making
  • Strategic investment framework
  • Market stability

3. Operational Expenses and Token Sales

3.1 Operational Budget

The Foundation's operational expenses are funded through:

  1. Interest generated from the initial endowment
  2. Gradual, planned sales of tokens from the Foundation Reserve
  3. Partnership and integration revenue
  4. Grants and donations
  5. Tax benefits from its non-profit status

The Foundation maintains a conservative fiscal policy with a minimum 24-month runway maintained at all times.

3.2 Token Sale Guidelines

The Foundation employs the following guidelines for selling tokens from its reserves:

  1. Transparency: All sales are announced in advance with clear rationale
  2. Volume Limits: Maximum quarterly sales limited to 1.5% of circulating supply
  3. Market Impact Minimization: Sales conducted through OTC desks or programmatic selling to minimize market impact
  4. Reporting: Detailed reports published after each sale
  5. Purpose Restriction: Proceeds used only for approved operational expenses
  6. Lock-ups: Minimum 30-day lock-up between sale announcements and execution

3.3 Financial Controls

The Foundation implements strict financial controls:

  • Multi-signature wallets requiring at least 3/5 council members for large transfers
  • Regular external audits of financials
  • Clear separation between foundation operations and protocol governance
  • Quarterly financial reports published publicly
  • Annual budget approved by full council

3.4 Token Launch Mechanism

The Foundation will implement a fair and transparent token launch through a Liquidity Bootstrapping Pool (LBP):

  • Launch Format: 7-day Balancer LBP with dynamic weighting

  • Initial Pool Structure:

    • Starting weight: 90% NOVA / 10% USDC
    • Ending weight: 50% NOVA / 50% USDC
    • Initial NOVA allocation: 1,050,000 tokens from Community allocation

  • Participation: Open to public, with KYC requirements for larger purchases

  • Anti-whale Measures: Maximum individual contribution caps in the first 24 hours

  • Post-LBP: Unsold tokens return to Community allocation, sold tokens establish initial DEX liquidity

3.5 Strategic Investment Framework

Prior to public launch, the Foundation will secure strategic investors who align with SuperNova's vision:

  • Strategic Round Allocation: 525,000 NOVA (1.25% of total supply) from Foundation Reserve

  • Investor Criteria:

    • Alignment with SuperNova's environmental mission
    • Technical expertise in relevant fields
    • Long-term investment horizon with appropriate lockups
    • Ability to provide technical, operational, or market-making support
    • Geographic diversity across key markets

  • Strategic Partner Categories:

| Category | Target Allocation | Partner Types | | -------- | ---------------- | ------------- | | Environmental | 30% | Renewable energy companies, carbon markets | | Technical | 30% | Post-quantum security, mining innovation | | Financial | 20% | Market makers, crypto-native funds | | Ecosystem | 20% | DeFi protocols, infrastructure providers |

3.6 Liquidity Management

The Foundation will implement a comprehensive liquidity strategy to ensure market stability:

  • Dedicated Liquidity Reserve: 2% of total supply (840,000 NOVA) allocated specifically for liquidity provision
  • DEX Strategy: Initial liquidity on major DEXes with professional position management
  • Market Making: Partnerships with professional market makers with strict performance requirements
  • Oversight: Treasury Committee manages liquidity deployments with Foundation Council approval
  • Transparency: Regular reporting on liquidity metrics and market quality

4. Environmental Initiatives Management

4.1 Carbon Negativity Goal

The Foundation is committed to ensuring SuperNova remains carbon negative, with specific targets:

  • Minimum 150% carbon offset (baseline)
  • Scaling to 200% carbon offset by year 3
  • Scaling to 300% carbon offset by year 5

4.2 REC and Carbon Offset Strategy

The Environmental Committee implements a two-pronged approach:

  1. REC Purchases: Prioritized to directly support renewable energy production

    • 60% of environmental budget allocated to RECs
    • Focus on new renewable energy projects
    • Geographic diversity to match mining distribution

  2. Carbon Offset Purchases:

    • 40% of environmental budget allocated to carbon offsets
    • Only verified projects with Gold Standard or Verified Carbon Standard
    • Priority for removals over avoidance
    • Third-party verification required

4.3 Environmental Reporting

The Foundation produces comprehensive environmental reports:

  • Monthly network carbon footprint calculations
  • Quarterly offset and REC purchase reports
  • Annual environmental impact assessment
  • Public dashboard with real-time emissions data
  • Third-party audit of carbon negativity claims

4.4 Green Mining Incentives

The Foundation promotes green mining through:

  • Fee discounts for verified renewable energy miners
  • Enhanced rewards for verified green miners
  • Technical support for renewable energy integration
  • Research grants for energy-efficient mining technologies
  • Educational resources on sustainable mining practices

5. Legal Considerations

5.1 Regulatory Compliance

The Foundation maintains compliance with:

  • Swiss foundation law and regulations
  • FINMA guidelines for blockchain organizations
  • International AML/KYC standards where applicable
  • Data protection regulations
  • Environmental reporting requirements

5.2 Swiss Regulatory Advantages

Switzerland offers specific advantages for the Foundation:

  • Clear legal framework for crypto foundations
  • Political stability and legal certainty
  • Strong privacy protections
  • Access to crypto-friendly banking
  • Established ecosystem of blockchain organizations
  • Regulatory sandboxes for innovation
  • Tax benefits for non-profit foundations

5.3 Foundation Independence

The Foundation is structured to ensure independence from any single entity:

  • Diverse council composition with term limits
  • Transparent decision-making processes
  • Clear conflict of interest policies
  • Independent audit committee
  • Public accountability through regular reporting

5.4 Intellectual Property

All core protocol code is open source under MIT license. The Foundation:

  • Holds trademarks for "SuperNova" and related branding
  • Maintains defensive patents only to prevent third-party restrictions
  • Promotes open development while protecting core infrastructure

6. Foundation Timeline and Milestones

6.1 Establishment Phase (2025 Q2-Q3)

  • Legal registration in Switzerland
  • Initial council appointment
  • Governance framework finalization
  • Environmental committee formation
  • Initial treasury setup and custody solution implementation

6.2 Growth Phase (2025 Q4 - 2026 Q2)

  • Ecosystem development grants program launch
  • Environmental treasury activation
  • First major REC and carbon offset purchases
  • Establishment of technical governance process
  • Community governance participation system launch

6.3 Maturity Phase (2026 Q3 onwards)

  • Full decentralization of protocol governance
  • Expanded environmental initiatives
  • Global education and adoption programs
  • Research and development funding expansion
  • Long-term sustainability planning

7. Conclusion

The SuperNova Foundation provides the governance structure and stewardship necessary to ensure the long-term success of the SuperNova blockchain, with a particular focus on maintaining its environmental commitments. By establishing the foundation in Switzerland, SuperNova benefits from a stable regulatory environment while implementing governance best practices that balance centralized efficiency with decentralized participation.

Through careful management of token allocations, transparent operational processes, and commitment to its environmental mission, the Foundation will support SuperNova's growth while maintaining alignment with its core values of sustainability, security, and innovation.

Appendix A: Foundation Contact Information

SuperNova Foundation
TBD
6300 Zug, Switzerland

Email: TBD Website: TBD

Swiss Registry Number: CHE-XXX.XXX.XXX

Appendix B: Initial Foundation Council Members

The initial Foundation Council will be announced following the completion of the legal registration process. Council members will be selected based on expertise, industry reputation, and commitment to SuperNova's mission.

Appendix C: Audit and Compliance Partners

Legal Counsel:
TBD Zug, Switzerland

Financial Auditor:
TBD
Zug, Switzerland

Environmental Auditor:
TBD
Zurich, Switzerland

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