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# System prepended metadata

title: Proposal cancellation of ongoing contracts that is not yet delivered.

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# Proposal cancellation of ongoing contracts that is not yet delivered.

The Poll period is 7 days from the publishing of this proposal. Each Pascal coin holder has 1 vote here in Discord. 

The background
===
Most of the contracts entered into by the Foundation have been on the basis of USD While this would not have been a problem if the exchange rate had been fixed at the time the contract was agreed the practice has been to use the exchange rate at the time of payment. As a result of the falling value of PASC this has led to a situation where the Foundation is committed to paying out PASC at level which is unsustainable.

Based on an exchange rate of $0.12/PASC, the sum of all the current ongoing contracts for the rest of the year is estimated to be 550 K Pasc. The estimated income to the Foundation is only 260 K PASC for the same period. Monthly income is 86.400 Pasc that is $10.368 at the rate $0.12. There are no reserves available.

PiPs 11 and 21 specify that budgets can only be set for a maximum of 3 months, which means that any ongoing commitment must be reappraised and approved every 3 months. This has not been practiced and is one of the reasons the Foundation is in this state. It is critical that the Foundation and community does not overspend the developer fund.

Current Commitments
===

Here is a list of the current commitments of the Foundation (not in any particular order). Current PASC equivalents are based on an exchange rate of $0.12 

1. Monthly payment to @PascalCoin
Description: Services delivered to community
Type: Monthly
Recipient: Albert
Date of Poll: 7 Jan 2019 
Currency: USD
Amount: 5000/month
PASC equivalent at date of agreement:19600
Current PASC equivalent: 41666

2. Management Fee for running Foundation
Description: Management fee for running foundation
Type: Monthly
Recipient: Herman
Date of Poll: 20 Mar 2019
Currency: USD
Amount: 2000/month 
PASC equivalent at date of agreement:8628
Current PASC equivalent: 16666

3. Layer 2 R & D
Description: Funding for layer 2 R&D
Type: Monthly
Recipient: Herman 
Date of Poll: 20 Mar 2019
Currency: USD
Amount: 3000/month 
PASC equivalent at date of agreement:12942
Current PASC equivalent: 25000

4. Debt Repayments
Description: Repayment of expenses incurred by Herman in 2018
Type: Fixed
Recipient: Herman
Date of Poll: 18 Apr 2019
Currency: PASC
Amount: 230000 @ 20000/month
*Note: some of this has already been paid down*

5. Ledger Nano Wallet
Desciption: Ledger/Nano development
Type: Fixed
Recipient: dbolet 
Date of Poll: 26 Apr 2019
Currency: PASC
Amount: 20000
Amount of project complete: %
Amount already paid:0

6. Interim DAO
Description: Development of an interim DAO 
Type: Fixed
Recipient: Interim DAO team
Date of Poll: 28 Apr 2019
Currency: PASC
Amount: 6000 
Amount already paid: 0

7. PiP 31c
Description:
Type: Fixed
Recipient: Mosu_forge 
Date of Poll: 06 May 2019
Currency: USD
Amount: 20000
PASC equivalent at date of agreement:80482
Current PASC equivalent: 166666
Amount of Project Complete: appr 80 %
Amount already paid: 0

8. Marketing
Description: 90 hours a month @ $8/h
Type: Monthly
Recipient: joelagbo
Date of Poll: 7 Jun 2019
Currency: USD
Amount: 720/month
PASC equivalent at date of agreement:
Current PASC equivalent: 6000

9. Management of HK Foundation
Description: the ongoing management of the Hong Kong Foundation
Type: Monthly
Recipient: Ugo4Brain
Date of Poll: 15 Jul 2019
Currency: USD
Amount: 2000/month
PASC equivalent at date of agreement:11485
Current PASC equivalent: 16666
*Note: This has never been started*

10. PiP 34A: Website Redesign
Description: Redevelopment of website payable in 4 tranches. Deliverable 1 is complete
Type: Fixed
Recipient: 
Date of Poll:
Currency: USD
Amount: 7500
PASC equivalent at date of agreement:68524
Current PASC equivalent: 62500

11. Adhoc Contractors
Description: Herman to be able to pay ad hoc contractors 35 USD/hours for website development, content editing, styling, deployment for all *.pascalcoin.org websites
Type: Variable
Recipient: various
Date of Poll: 31 May 2019
Currency: USD
Amount 35/hour
PASC equivalent at date of agreement:
Current PASC equivalent: 292

Key Team Recent Activity 
===
Over the last weeks the Key Team has discussed what can be done to help resolve this and carried out an internal poll to establish "what is most important  to do for the short term finances for the dev-fund". 

The suggestion
=== 
The favoured suggestion (9 votes out of 12) was to lower costs by:

1. Cancelling all ongoing agreements 
2. Create an overview of already done work that must be paid
3. New and renewed agreements/contracts must be voted on again in PASC
4. All agreements will be in PASC and the Foundation can only commit to spending the PASC that will be available in the coming quarter and unspent PASC from previous rewards.

The Key-Team is asking the community for authorisation to 
1. cancel all ongoing monthly agreements. 
2. review and propose the appropriate monthly agreements, specified in PASC
3. look to cancel other existing agreements where this is possible
4. review and propose replacement agreements where appropriate priced in PASC
5. enforce the constraints specified in PiPs 11 and 21 that ongoing contracts will have to be reviewed, renegotiated and reassigned every 3 months.  

All contractors
===
Key-Team requests that within 1 week from the ending of this Poll all contractors with ongoing contracts provide an estimate of how complete any ongoing work is, and any unpaid amounts for work already done.

When this has been received new budgets will be proposed for voting on. All budgets will be constrained by PiPs 11 and 21. Budget proposals will be agreed by the Key-Team before being presented for a general vote

The Foundation has the responsibility to propose budgets for costs running foundation during the next quarter and variable costs suggested in polls so funds can be allocated to cover rent of premises, audit cost, book keeping cost etc. For complete transparency these budgets must be detailed and not presented as a global amount. 
  

Any discussions about this feel free to chat in #general .

:thumbsup: I give my mandate for this 
:thumbsdown: I do not give my mandate for this.
:zero: Abstain,  or recuse myself from voting.   