HIP-001 Proposal for Hyperlock Foundation Funding

The Hyperlock Foundation Cayman Islands and its subsidiary, Butter Limited BVI, support the Hyperlock DAO by providing assistance as needed and managing off-chain operations, such as contracting service providers requiring traditional agreements.

The Foundation was established as an independent non-profit foundation to assist with bootstrapping and the launch of Hyperlock token, and has the formal objective to foster the research & development of the Hyperlock Protocol and to provide assistance as mandated by Hyperlock DAO resolutions. This proposal seeks ratification of the Foundation's establishment and a funding allocation of 500,000 Hyper tokens to cover the estimated operational costs for 2024 through 2025.

Overview, Budget 2024-2025 The Hyper Foundation

The Hyperlock Foundation enables development, maintenance, education, and other essential activities for the Hyperlock Protocol, as mandated by Hyperlock DAO resolutions.

A review of existing structures in the industry highlights the importance of a foundation for the Hyperlock Ecosystem and DAO. The Foundation acts as an off-chain bridge, engaging service providers such as auditing firms, marketing and business development agencies, and software development companies.

This proposal seeks to sufficiently fund its continuous operation to allow the ongoing support to the Hyperlock Protocol and the Hyperlock DAO. The below table reflects the proposed budget for 2025-2026. The budget below includes an annual estimation of costs that may be incurred during the next years, as costs may also vary depending on further developments.

Foundation Expenses

The current projected consolidated expenses for Hyperlock Foundation and its BVI Subsidiary estimate costs through the end of 2025-2026 and include ongoing compliance and regulatory fees, legal costs, hosting & development expenses, among other costs.

Operational Expenses (Director, Supervisor, Secretary, Registered Office & Compliance fees): $48,336.00/yr Legal: $12,900.00/yr Total: $61,236.00/yr

Funding request The Hyperlock Foundation is requesting to ratify 500k Hyperlock allocation to cover the expenses stated above. The Foundation will convert funds to USD on an as-needed basis throughout each year to meet payment obligations as outlined above. To maintain transparency, any additional or out-of-budget costs will require approval from the Hyperlock DAO.