Proposal to Create Indigo Foundation Financial Structures

Proposal to Create Indigo Foundation Financial Structures

TL:DR: Now that Indigo Protocol V2 has been implemented, the DAO Treasury is accessible to transfer INDY to the Indigo Foundation to pay past and future Protocol expenses. In this Proposal, the Labs team seeks approval from the DAO members of the service providers retained to assist in creating and operating the Foundation’s financial structure and creation of the multi-sigs needed as part of that.

A ‘yes’ vote on this Proposal provides the DAO’s approval of Lemma and CLS as services providers, and approves the creation of bank accounts and several Foundation-controlled multisig wallets.


In anticipation of the unlocking of the DAO Treasury with Protocol V2, on April 4, 2024 the Foundation directors executed a services agreement with the Cayman Islands-based service provider Lemma Ltd. Lemma is a leading provider of financial and account management services to blockchain projects. While the full text of the Services Agreement is not public, we can state that Lemma is in the process of:

  • opening bank and exchange/Market Maker accounts;
  • managing of all accounts set-up and continued monitoring;
  • setting up and maintaining a database with all relevant financial information located on a central drive;
  • providing monthly accounting services, payments processing, financial accounts available to the directors on-demand and via quarterly statements; and
  • providing wallet management services.

Lemma is available to provide other services as well at the Foundation requests. Lemma has already started gathering information and building out the accounting functions that the Foundation requires.

The cost of Lemma is over $10,000 USD per month, but the Directors considered alternatives to retaining a service provider like Lemma – mainly, having the Foundation directly hire contractors or employees to provide such services – and determined that all alternatives would be materially more expensive to the Foundation (particularly in the Cayman Islands).


Similarly, in late March 2024 the Directors executed a services agreement with CLS Global FZC LLC, a UAE company with registration number 3219. CLS provides access to services and software for order flow, sell and buy flow, and trading so that any necessary sales of the INDY token can be done in ways which maximize the short- and long-term value of INDY. Some selling of INDY will be necessary to pay service providers that do not or cannot accept INDY as payment.

The cost of CLS is approximately $2,000 per month. As with Lemma, the Directors considered alternatives and determined that CLS was the least expensive way to secure these necessary services.

Multisig Wallets

The Labs team suggests that four Foundation-controlled wallets be created as soon as possible for use by the Foundation, and that all should be multisig wallets. Each wallet will be identified to the DAO once created, and Lemma will provide quarterly reports on all transactions.

The suggested wallets are:

Wallet Purpose Multi-Sig Signors
Payments to Protocol Service Providers This wallet would receive INDY that the DAO has voted to be paid to a Service Provider that is supporting the Protocol - e.g., developers, AWS, TxPipe, etc.

The Foundation would hold the INDY and make payments when due according to the terms of each Services Agreement, if the service provider has fulfilled their obligations.|3 of 5 signor requirement with the following signors:

  • One appointed by the Indigo Foundation;

  • Two appointed by Lemma

  • One appointed by Indigo Labs; and

  • One outside legal counsel.|
    |Protocol Support|This wallet would hold INDY that the DAO has voted to be used for support of the Protocol, such as:

  • stipends to Working Groups or other contributors;

  • rewards/yield farming;

  • grant, hackathon, or bounty programs.

potentially staking of any DAO Treasury ADA to a stake pool.|
|Foundation Operations|This wallet would hold INDY that the DAO has voted be used for payment of Foundation-specific service providers (such as Lemma, CLS, Zedra, etc.), legal counsel to the Foundation, and other general administrative expenses as the Foundation grows.|
|Exchange Funds Account

(ETH wallet)|This wallet accepts USDT or USDC from exchange accounts (where INDY is sold using CLS to generate stablecoins as needed to pay service providers).|

Additional wallets would be created as directed by the DAO in future Proposals.


To reiterate, a ‘yes’ vote on this Proposal approves the above-listed work to be done by Lemma and CLS, and the creation of the multisig wallets listed above.

These additional steps to get the Foundation operating more fully have been two years in the making and part of the Indigo Protocol’s decentralization story from the start. We hope to have everyone’s support and look forward to answering any questions.


What does a ‘no’ vote entail?

Well as you see here there are no alternatives presented in this vote - it is just yes or no on wallets since Lemma and CLS are contracted already for services. The Foundation will be on hold essentially until it can receive Indy or ADA from the DAO treasury and manage those funds via the wallets suggested in the proposal. In addition to the wallets for service provider payments etc., the Foundation is expected to be a seat on the PWGs multisig as well for incentivized LP pools, so really just getting the rails in place for it to support the necessary functions and flow of funds. Hope this helps bud :handshake:

We have been waiting a long time for this and it’s exciting to see it finally coming to gether. I fully support CLS and the services they provide. Having a service provider that can time the sale or purchase of Indy in a way that will minimize price impact is really important. Eventually the DAO Treasury will have ADA and stables sufficient to pay venders with but for now we need companies like CLS managing these necessary transactions.


This proposal will likely create strong selling pressure on the Indy token, but I believe it is necessary for the long-term success of the project. Iis possible to mint some ADA handles to put in multisig wallets to ensure greater transparency and traceability.? I know that the wallets will be identified by the DAO, but this step will give investors more confidence in the project. Thank you

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Great idea regarding the ADA Handles to these wallets.


If I may, I feel that the short term priority for proposal is either to activate redemption or to redirect some interest fee to INDY stakers… there is no incentive anymore to hold INDY than voting for PWG membership…
If not, I am afraid that INDY treasury is going to be very poorly valued while selling pressure may increase …

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I feel like the sell pressure is worse when you just give large sums to individuals and hope they don’t dump on the community (cough…DC). A company like CLS can at least manage and mitigate any major impacts. It’s an improvement as far as I’m concerned.

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