TLDR:

1. Today marks the launch of the Moonwell Foundation, a foundation formed and operated from the Cayman Islands, created with the mission of supporting the Moonwell Ecosystem.

2. Moonwell has seen tremendous growth in recent months, and now has an entity that can enter into legal agreements, fostering further development and partnerships.

3. The Moonwell Foundation safeguards a substantial treasury, including 9.47m USDC and 415.9 wstETH, which will be used for the continued growth and development of the Moonwell Ecosystem.

4. A new Moonwell Security Council has been established to add an additional layer of security to the Moonwell Ecosystem.

5. WELL and MFAM token holders continue to power Moonwell Governance, playing a crucial role in approving community grants, managing reserves, upgrading the protocols, onboarding new collateral assets, and electing and maintaining future iterations of the Moonwell Security Council.

From humble beginnings on Moonriver Network in February 2022, the Moonwell Ecosystem has undergone a remarkable transformation. Moonwell has since grown to include major deployments on both Base and Moonbeam, amassing a total market size of over $300,000,000 and attracting an impressive 40,000+ unique users in the past 30 days alone. Underpinned by a pioneering cross-chain governance system powered by token holders, Moonwell has evolved into a global community of suppliers, borrowers, governance delegates, developers, risk managers, localization experts, and people passionate about building open and accessible onchain finance and governance systems.

As the Moonwell Ecosystem continues to expand and mature, it has become clear that a dedicated entity is necessary to foster its ongoing development, ensure its long-term sustainability, and promote the community’s mission of providing innovative, secure, and simplified onchain financial solutions to everyone. To address this need and mark a significant milestone in Moonwell's journey, the Moonwell Foundation has been established.

History of Moonwell Governance

In June 2022, Moonwell was activated on the Moonbeam Network, and the WELL token was created to govern the protocol. Just two short months later, full onchain governance was established, decentralizing administration of the protocol, while also enhancing its security and redundancy.

“As a delegate in Moonwell Governance for over a year, I've seen firsthand the power of community-driven decision making. The launch of the Moonwell Foundation is a big deal for us—it's going to bring resources that will majorly boost the DAO’s innovation and growth” says long-time delegate Coolhorsegirl.

Since this time, the Moonwell community has successfully passed over 100 onchain Moonwell Improvement Proposals. These community-driven proposals have shaped the direction of Moonwell, including decisions to activate the protocol on Base, select a new bridge provider on Moonbeam, activate new markets, provide WELL grants, and more.

Moonwell now stands as a model for seamless and effective protocol governance, boasting a state of the art multichain governance token and architecture, a stable of world-class contributors such as Lunar Labs, Gauntlet, Boardroom, and Solidity Labs, a thriving Delegates program, a global and diverse group of governance participants, and a substantial treasury to invest in future improvements, innovations, and ecosystem development.

What is the Moonwell Foundation

The Moonwell Foundation is a Cayman Islands entity established to support the growth, development, and adoption of the Moonwell Protocol, the Moonwell Apollo Protocol, and the broader Moonwell Ecosystem. The Moonwell Foundation's mission is to:

• Enable the development of technical improvements to the Moonwell and Moonwell Apollo Protocols, bolstering their capabilities in providing innovative, secure, and accessible onchain financial solutions.

• Foster community and ecosystem growth through strategic grants.

• Organize educational initiatives and participate in events to increase awareness and promote the Moonwell Ecosystem.

• Safeguard certain intangible assets that underlie the Moonwell Protocol and Moonwell Apollo Protocol.

The Moonwell Foundation operates in accordance with its governing documents, which include the Moonwell Foundation Memorandum and Articles of Association (M&A) and Bylaws. These documents define the Moonwell Foundation's purpose, structure, internal governance and operational rules, as well as the roles and responsibilities of the Directors and Security Council. The Moonwell Foundation works to ensure that its own governance and purposes are aligned with and supportive of the principles and objectives outlined in the Moonwell and Moonwell Apollo DAO Constitutions, maintaining a cohesive governance framework across the entire Moonwell Ecosystem.

The Moonwell Foundation is overseen by a board of directors residing in the Cayman Islands, who are responsible for managing its day-to-day operations and ensuring that it fulfills its mission. The Directors are bound by fiduciary duties to act in the best interests of the Moonwell Foundation, and their actions are subject to oversight by the Moonwell Foundation Supervisor.

Foundation Treasury and Grants

The Moonwell Foundation Treasury is well funded, providing the Foundation with a substantial runway and enough resources to invest in ecosystem growth and development. The total assets under Moonwell Foundation management include:

• 9.47 million USDC

• 415.9 wstETH

• 934.44 million WELL

• 182.81 million MFAM

Community and Foundation Grants

The Moonwell Ecosystem offers two distinct grant tracks designed to foster community-driven innovation and support strategic growth:

Community Grants - Open to anyone in the community with sufficient voting power, these grants are denominated in WELL or MFAM tokens. The process begins with proposal ideation on the Moonwell Governance Forum and culminates in onchain voting through the Moonwell Improvement Proposal (MIP) Process, ensuring community involvement and transparent decision-making.

Foundation Grants - Designed to support Moonwell Foundation service providers, Moonwell contributors, and strategic initiatives aligned with the Foundation's mission. These grants are managed directly by the Moonwell Foundation and involve a rigorous evaluation process, from initial inquiry and proposal submission to in-depth assessment.

Driving Ecosystem Growth and Sustainability

Both Community Grants and Foundation Grants are expected to align with the Moonwell Foundation’s mission and feature clear objectives with well-defined execution plans. Successful proposals should:

• Contribute positively to the Moonwell Ecosystem by introducing innovative solutions or enhancing existing features

• Prioritize open-source development and long-term sustainability, especially for engineering-focused proposals

• Actively engage with the Moonwell community to gather feedback, refine ideas, and build support

To maintain the integrity and security of the Moonwell Ecosystem, potential grant recipients must successfully pass the Moonwell Foundation's KYC/AML procedures and grant proposals must undergo a thorough review by the Security Council.

The Moonwell Foundation is committed to supporting the growth of the Moonwell Ecosystem through the above grant programs. By providing the necessary resources and empowering community-driven innovation, the Foundation aims to solidify Moonwell's position as a leader in onchain finance. The Moonwell Foundation encourages all community members to explore these grant opportunities and contribute to the ongoing development of the Moonwell Ecosystem.

Security Council

In tandem with the launch of the Moonwell Foundation is the introduction of the Moonwell Security Council. The Security Council plays a vital role in ensuring the security and integrity of the Moonwell Ecosystem. The Security Council is composed of 5 trusted Moonwell contributors and community members, each bringing unique expertise and a deep commitment to the long-term success of Moonwell.

The initial Security Council members are:

• Gauntlet

• Elliot Friedman (Solidity Labs)

• Luke Youngblood (Lunar Labs)

• X0s0l

• Coolhorsegirl

To ensure community support, the initial Security Council roster will be subject to ratification votes in both the Moonwell and Moonwell Apollo Snapshot portals. These votes will go live on May 6th, allowing the community to express their confidence in the selected members. Successful ratification votes will confirm the inaugural Security Council and empower them to assume their roles and responsibilities within the Moonwell Ecosystem.

“Security is top of mind for all things smart contract development. As an active contributor to Moonwell, I’m incredibly grateful to be working alongside contributors that take security as or more seriously than myself. The difficulty of securing decentralized applications at all layers of the stack, cannot be understated, and I am honored to serve on the security council where I can further contribute to safeguarding the protocol and its users." says Elliot Friedman from Solidity Labs.

These individuals have been selected based on their extensive experience in onchain finance, risk management, security analysis, smart contract development, in-depth knowledge of the Moonwell Ecosystem, and reputation within the Moonwell and Moonwell Apollo communities. If ratified, the Security Council members will serve an initial 12-month term, after which full onchain elections will take place annually to select new members, ensuring that the Security Council remains representative of the evolving Moonwell Ecosystem.

Roles and Responsibilities

Guardianship

The Security Council serves as a unified group of signatories across various mission-critical, security-focused multisigs, such as the Governance Guardians and Pause Guardians. In the event of an emergency, such as a security threat or exploit, the Security Council, in conjunction with the Board of Directors, has the authority to take immediate action to protect the protocol and its users. This may include pausing protocol functionality or coordinating with the Moonwell Foundation and DAOs to address an ongoing issue.

Proposal and Grant Review

In addition to their emergency response capabilities, the Security Council is tasked with reviewing Moonwell Improvement Proposals (MIPs) for compliance with the Moonwell DAO Constitution, Moonwell Apollo DAO Constitution, and Moonwell Foundation governing documents. They also play a crucial role in reviewing and approving grant proposals submitted to the Moonwell Foundation, Moonwell DAO and Moonwell Apollo DAO, ensuring that projects seeking funding align with the community's objectives and contribute to the growth and security of the ecosystem.

Transparency and Communication

The Security Council operates with a high degree of transparency, holding regular meetings, and providing public communications to keep the community informed of its activities and decisions. By establishing this dedicated group of experts and community leaders, Moonwell is taking a significant step towards strengthening its security posture, enhancing its governance processes, and ensuring the long-term resilience of the ecosystem.

DAO Constitutions

The Moonwell Foundation operates in accordance with a set of governing documents that outline its purpose, structure, and governance processes. Alongside these documents stands the Moonwell DAO Constitution and the Moonwell Apollo DAO Constitution, which play crucial roles in defining the rules, principles, and processes that govern the operation and decision-making of the Moonwell DAO (WELL) and Moonwell Apollo DAO (MFAM).

Moonwell DAO Constitution

This document, crafted in collaboration with the Moonwell Foundation, active contributors to the Moonwell Protocol, and delegates of the Moonwell DAO, serves as the primary governance framework for the Moonwell Protocol. It outlines the Moonwell Improvement Proposal (MIP) process, which enables WELL token holders to propose, discuss, and vote on changes and upgrades to the protocol. The constitution also defines the role and responsibilities of the Security Council in maintaining the security and integrity of the Moonwell Protocol and provides guidelines for both Foundation and Community Grants funded by the WELL Treasury.

Moonwell Apollo DAO Constitution

Similarly, the Moonwell Apollo DAO Constitution is the primary governance framework for the Moonwell Apollo Protocol on Moonriver. It details the Moonwell Improvement Proposal (MIP) process, which allows MFAM token holders to participate in the governance of the Moonwell Apollo protocol. The constitution also outlines the role of the Security Council and provides a framework for both Foundation and Community Grants funded by the MFAM Treasury.

Living Documents

It is important to note that both the Moonwell DAO Constitution and the Moonwell Apollo DAO Constitution are living documents. They can be amended and updated through the MIP process to reflect the evolving needs and priorities of the Moonwell Ecosystem. This flexibility is not just a feature but a commitment to progressive decentralization and continuous improvement, embodying the innovative and inclusive spirit of the Moonwell community and ensuring that these governance frameworks remain responsive and adaptable.

Code of Conduct and Community Values

Both the Moonwell DAO Constitution and the Moonwell Apollo DAO Constitution include a Code of Conduct that sets forth the expectations for respectful, ethical, and inclusive behavior within their respective communities. The Code of Conduct emphasizes respect, integrity, collaboration, compliance, and privacy as core tenets of participation in the Moonwell Ecosystem.

In addition, the constitutions outline a set of Community Values that guide the DAOs' decision-making and strategic direction. These values include safety and security, decentralization, user-centric design, collaboration, innovation, education, inclusivity, community-driven development, and transparency. By upholding these values, the Moonwell DAOs aim to create a vibrant, supportive, and forward-thinking communities that drive the adoption and growth of onchain finance.

Sign the Constitution

The Moonwell Foundation encourages all members of the broader Moonwell community to review the Moonwell DAO and Moonwell Apollo DAO Constitutions to familiarize oneself with the governance processes and principles that underpin the Moonwell Ecosystem. By reviewing these documents, community members can also understand and commit to upholding the Code of Conduct and Community Values that shape the culture and ethos of the Moonwell DAOs.

As a token of your support and commitment to the values enshrined in these constitutions, we invite you to sign the constitution by minting an "I Signed the DAO Constitution" NFT on Moonwell’s Galxe page after reviewing either constitution. By engaging with these foundational documents and participating in the governance processes they outline, you can play an active role in shaping the future of the Moonwell Ecosystem and contribute to its mission and ongoing success.

The Road Ahead

The Moonwell Foundation's launch signals the start of a new chapter for the Moonwell Ecosystem. It's a journey that will take us to new heights, challenge us to think bigger, and empower us to build powerful onchain financial tools that work for everyone. There are a multitude of ways for you to get involved and make a tangible impact on the future of the Moonwell Ecosystem. Whether you're a token holder, delegate, developer, or simply a passionate advocate, there are countless ways to contribute:

• Activate your WELL and MFAM voting power by delegating to yourself or others

• Shape the direction of Moonwell by proposing, discussing, and voting on Moonwell Improvement Proposals

• Apply for grants to fund your own Moonwell-adjacent projects and initiatives

• Read through the Moonwell Community Contribution Guidelines

• Educate others about the benefits of onchain finance

• Help expand Moonwell’s sub communities and language groups

• Stay informed and engaged by joining Boardroom's Moonwell Governance Calls

• Collaborate with others in the Moonwell Discord and Governance Forum

• Nominate yourself as a Moonwell Delegate

As we embark down this path together, remember that the true strength of the Moonwell Ecosystem lies in the collective power of its community. Every contribution, no matter how big or small, plays a part in shaping the future of Moonwell.

The opportunities are endless. But the critical ingredient is you.