Foundation

Constitutionally Constrained.
Publicly Auditable.

The Foundation executes operational actions within immutable constitutional boundaries. It cannot modify consensus rules, alter the emission schedule, redirect coinbase allocations, or access reserve assets outside of Emergency Catastrophe.

NO GOVERNANCE | Consensus rules immutable at genesis
SECTION 01

What the Foundation Cannot Do

Immutable Constraints
ENFORCED BY CONSENSUS

These constraints apply to the base PoW consensus layer. PoPC participation is opt-in — bond and escrow mechanics are constitutionally defined but voluntarily accepted.

ActionStatus
Modify consensus rulesImmutable
Alter emission scheduleImmutable
Change coinbase splitImmutable
Redirect coinbase allocationsImmutable
Increase supply beyond hard capImmutable
Access reserve assets (normal operation)Immutable
Override slash mechanics (PoW consensus layer) PoPC bond/escrow penalties are opt-in — you choose to participate. Your UTXOs outside PoPC are always yours and cannot be touched. Immutable
Create a governance token or DAOImmutable
Add admin key, pause, or upgrade proxy to chainImmutable
No entity — including the Foundation, its members, or any future organization — can modify consensus rules after genesis. SOST has no DAO, no voting token, and no multisig with authority over consensus or monetary parameters.
SECTION 02

Operational Scope

The Foundation's operational scope is exhaustive — nothing beyond the following is permitted.

Permitted Operations
EXHAUSTIVE LIST
OperationConstraint
Gold Vault conversionExecute SOST→XAUT/PAXG purchases. Every batch attested on-chain.
50/50 split adjustmentChange XAUt/PAXG acquisition split for future purchases only. Disclosed in batch reports.
Purchase pauseMay pause gold purchases without consensus. Disclosed via batch reports.
Purchase redirectionRedirect future purchases between issuers (e.g., if issuer risk increases).
PoPC contract managementMay pause new PoPC contracts for critical bugs. Existing contracts unaffected.
Dissolution declarationOnly after dead-man switch triggers (90 days zero blocks). 60-day public timelock.
Protocol Fee Revenue
AUDITABLE
SourceRateUse
Model A protocol fee5% of rewardInfrastructure, watcher, security audits, development
Model B protocol fee10% of rewardSame destination, higher rate due to greater operational burden
Fee destinationFoundation operational wallet (publicly auditable)
Fee changes30-day advance public notice, apply only to new contracts
SECTION 03

Foundation PoPC Commitments

The Foundation is the first PoPC participant — a protocol validation commitment to demonstrate the system end-to-end before opening to external participants. Same rules apply. No exceptions.

Equal treatment: The Foundation pays the standard 5% protocol fee on all PoPC commitments — the same rate as any third-party participant. No exceptions.
Active Commitments
MODEL A — AUTOCUSTODY
FieldFOUND-001FOUND-002
ModelA (bond + audit)A (bond + audit)
AssetXAUTPAXG
Amount0.4 oz0.4 oz
Duration3 months3 months
Start2026-03-282026-03-28
Expiry2026-06-282026-06-28
Protocol fee5% (standard)5% (standard)
Status PENDING PENDING
Verification
PUBLICLY AUDITABLE
PropertyValue
Foundation ETH wallet0xd389...C7a6
XAUT contract0x6874...2F38
PAXG contract0x4580...Af78
Verification methodbalanceOf(wallet) ≥ committed amount, checked against Ethereum mainnet
Audit entropyConvergenceX block entropy (block_id, commit, checkpoints_root)
Last verified
Anyone can verify: Check the Foundation wallet on Etherscan at any time. The XAUT and PAXG balances must remain ≥ 0.4 oz each for the full commitment period.
SECTION 04

Progressive Decentralization

Constitutional Commitment
C16

The Foundation commits to progressive decentralization and full automation of all operational processes as soon as technically viable. Manual operations during Phase 1 are transitional by design, not permanent. Every manual process — PoPC verification, reward payouts, vault conversions, batch reporting — has a planned automation path documented in the protocol roadmap.

This is a constitutional commitment, not a discretionary goal. The Foundation exists to bootstrap operations that the protocol will eventually execute autonomously. As each operational process is automated, the Foundation's scope shrinks — by design.

ProcessPhase 1 (Manual)Target (Automated)
PoPC verificationverify_popc_balance.pyOn-chain smart contract
Reward payoutspopc_reward_payout.pysost-popc-daemon
Vault conversionsManual batch executionDeterministic execution stack
Audit schedulingConvergenceX entropy (already automated)Already automated
Irreversible trajectory: Decentralization is a one-way path. Once a process is automated and verified, the Foundation permanently relinquishes manual control over that process. No mechanism exists to reclaim it.
SECTION 05

The Constitution

Encoded at genesis. Unchangeable. These rules define the boundaries within which the entire protocol — including the Foundation — must operate.

Constitutional Rules
C1 – C16
RuleProvision
C1Total supply upper-bounded by ~4,669,201 SOST by construction. Only issuance is subsidy(height).
C2Coinbase split immutable: q=reward//4, gold=q, popc=q, miner=reward-gold-popc.
C3Gold Vault destination immutable. Reserve Vault Heritage sealed. Emergency dual gate only.
C4Reserve shall not be sold except under Emergency Catastrophe (E2) or Dissolution.
C5Dissolution requires 90 days zero blocks + 60-day public timelock.
C6Dissolution is one-way and irreversible.
C7Slash is automatic. No human can override once triggered.
C8Slash split 50/50 (PoPC Pool / Gold Vault). No burn. Immutable.
C9Dynamic bond table: 12% to 30% based on SOST/gold ratio.
C10No admin key, pause function, or upgrade proxy on PoW chain.
C11ConvergenceX parameters fixed at genesis for epoch 0.
C12All consensus arithmetic is integer-only. Zero floating-point.
C13Model B escrow: non-upgradeable, no admin, withdraw only by depositor after expiry.
C14Default 50/50 XAUt/PAXG split; adjustable operationally for future purchases only.
C15Emergency dual gate: ≥75% miner signaling (W=144, YES≥108) + Foundation Execution Order. The Foundation may propose increasing this threshold to 90% or 95% if deemed appropriate for the long-term security of the protocol.
C16Progressive decentralization: all manual operations are transitional by design with documented automation paths. Constitutional commitment, not discretionary.
SECTION 06

Emergency Catastrophe

The only mechanism to move previously purchased reserve assets. Requires dual authorization — no single party can act alone.

Dual Gate Authorization
BOTH REQUIRED
// Emergency Catastrophe — dual authorization GATE 1: PoW miner signaling ≥ 75% (W=144 blocks, YES ≥ 108) GATE 2: Foundation Execution Order // Only two actions permitted: E1: ROTATE // Move reserve to new vault address E2: LIQUIDATE // Liquidate → Buy → Redistribute to vaults (50/50)
PropertyValue
Miner signaling window144 blocks (~24 hours)
Threshold≥75% (108 out of 144 blocks)
Foundation aloneCannot move reserves
Miners aloneCannot move reserves
Consensus rules affectedNone — only external reserve assets
SECTION 07

Heritage & Dissolution

Heritage (Default State)
PERPETUAL

The Reserve Vault remains sealed by default. No outbound transfers occur in normal operation. The gold tokens remain a permanent, publicly verifiable reserve record. Heritage is the default — the absence of consensus activity cannot authorize reserve movements.

If the chain becomes permanently inactive, the dissolution process follows a state-based timeline:

Day 0
Normal
Blocks produced normally. Last block mined.
Day 30
Watch
Liveness Alert published. Recovery actions begin. No liquidation.
Day 60
Critical
Critical Alert. Full status report. No liquidation.
Day 90
Dissolution
Notice of Dissolution. 60-day public timelock begins.
Day 150
Execution
Wind-down execution. Network lifecycle shutdown.
Critical constraint: If the chain dies and no Emergency Catastrophe was authorized before the chain stopped producing blocks, the reserve remains in Heritage state. Dissolution is a network lifecycle event, not a reserve liquidation mechanism. Dissolution is one-way and irreversible (C5, C6).
Contact & Partnerships: contact@sostcore.com