Background and Proposal Overview
On February 23, the Chief Operating Officer of Instadapp submitted a governance proposal aimed at reshaping the future of the Fluid protocol. The plan involves transferring all intellectual property, including smart contract code, frontend interfaces, domain names, and trademarks, to a non-profit foundation based in the Cayman Islands. This move is designed to enhance transparency and establish a more decentralized governance framework.
Operational Structure of the Foundation
The foundation will operate without a single owner, overseen by appointed custodians and directors. However, holders of the FLUID token will retain ultimate authority through governance voting. In extreme cases, the community may even vote to dissolve the foundation, ensuring continued control by the decentralized autonomous organization (DAO).
Financial Support and Impact
Under the proposal, the DAO would allocate $250,000 per month — or $3 million annually — to fund engineering, security audits, and operational expenses. This financial support is intended to ensure the protocol's long-term technical development and security maintenance.
Current Financial Snapshot
- Total value locked (TVL) exceeds $1.2 billion
- Protocol revenue reached approximately $1.1 million in January
- Proposed funding would represent 16% of the highest monthly income recorded
- Legal transfer of IP rights is expected to conclude by mid-2026
If approved, this proposal marks a significant milestone for Fluid — transitioning from a team-led protocol to a fully decentralized governance model. It could strengthen community trust and drive further innovation in the decentralized finance (DeFi) ecosystem.