Secret Network (SCRT) Restructures to Become a Non-Profit Following Controversy

A series of scandals with the CEO and founder of Secret Network (SCRT) has pushed the founder out and forced a corporate restructuring.

Secret Network (SCRT) Restructures to Become a Non-Profit Following Controversy
Secret Network

Secret Network (SCRT), the Cosmos based, privacy-focused blockchain, has unanimously voted to undergo a major restructuring to become a non-profit organization. The move comes following controversy that the CEO allegedly made an undisclosed $2M sale of foundation funds and took it as a dividend payout.

The decision to become a non-profit is seen as a step towards greater transparency and accountability, as the organization aims to restore trust in the community. Part of the proposal was to bring in a third party to oversee the transition.

This wasn’t a one off controversy though, it’s been a slow burn decaying community trust. Many believed the foundation was a non-profit until it was leaked last year that it was made as a for-profit with the founder Tor Blair as the sole shareholder. In August, the community voted for actions that would increase transparency, and in response to that the foundation did… nothing.

The restructuring will ultimately result in decisions for Secret Network to be made by a committee which will include community representatives.

The restructuring is a significant step for Secret Network, as it seeks to address the concerns raised by the community. The network has already seen some validators leave, and some announce that they won’t be returning even after this move has been completed.

The full process is expected to take several months, during which time the foundation will continue to operate as normal. However, the foundation has stated that it will be taking a more proactive approach to engaging with the community, including regular community updates and open discussions on important topics. We’ll see if that happens.

Ultimately I think it’s very important to have projects like Secret Network bouncing around the ecosystem. SCRT brings some innovations to the table that typical privacy coin paradigms like Zcash and Monero don’t, allowing for privacy or transparency to be customisable. While the government demonizes any sort of transactional privacy, it’s obviously not in the average person’s best interest to have every penny they ever touch covered in an audit. Doubly so before there is a clear regulatory frameworks for what is legal.