In the first entry of this blog series, Nick Saponaro, CEO of Divi Labs, proposes a new vision for the Divi Foundation and discusses the distinctions between Divi Labs and the Divi Foundation. Join him for a Twitter Space to discuss these concepts and the future of the Divi ecosystem.
Although I’ve been in the space for nearly ten years, I still feel each day offers an opportunity to acquire new knowledge. I have recently been writing a lot, researching, speaking with other industry professionals, and learning as much as possible about this ever-evolving industry.
I’m writing this blog series to outline a proposed vision for the Divi Foundation. I don’t control the Divi Foundation. I am not on the board, nor should my ideas be taken as a concrete strategy. I see this as a catalyst for propagating new concepts and ideas for the ecosystem.
Divi Labs has spent much time analyzing our infrastructure and operating expenses as an independent organization. We have already taken actions to reduce our monthly working capital needs by 43% and have identified an additional 7% cost savings to be realized by mid-March.
These cost-saving initiatives ensure the continuity of operations in a significantly contracted industry while providing flexibility to take advantage of new development and market opportunities. Some of these measures also allow the Divi Foundation to independently assess the most efficient, reliable, and cost-effective methods to build, manage, and maintain critical infrastructure, applications, and systems within the Divi ecosystem. These opportunities could result in issuing more grants to developers and organizations besides Divi Labs that want to create use cases for $DIVI.
I write this blog with excitement and a bright outlook for the project's future! I fervently hope you, too, will share my excitement before the end of this read!
Before we dig into the philosophy behind the proposed approach, some clarification is necessary. There is a significant distinction between Divi Labs and the Divi Foundation.
Divi Labs is a privately-held, for-profit software development company owned and operated by several shareholders, of which I am one. The Divi Foundation (or Stichting Divi, organized in The Netherlands) is a primary customer of Divi Labs. The Divi Foundation contracts with and issues grants to Divi Labs via a third-party entity, Divi Treasury Ltd.
In addition to contracting with software developers, Divi Treasury, on behalf of the Foundation, manages exchange listings and various other vendor services that pertain to the Divi Foundation.
Divi Labs receives grants from Divi Treasury on behalf of the Divi Foundation to develop applications and license technology, including the desktop wallet application and the DiviWallet mobile application. Both applications utilize licensed Divi Labs proprietary technology like one-click masternode installer and mobile staking vault technology and seamlessly integrate several 3rd-party services like swaps and fiat ramps designed explicitly for the Divi Foundation ecosystem.
Divi Labs also maintains monthly services critical to the ongoing functioning of both the desktop wallet and the mobile DiviWallet for the ecosystem, including server hosting, data storage, and customer service function, among other services. In some situations, Divi Labs facilitates contracting between the Foundation and other developers and organizations, including exchanges, market makers, and other software developers like the firm that received a grant and built the Divi DeFi platform.
Divi Labs values the integral relationship with the Divi Foundation and the Divi ecosystem and has been committed to the success of the Divi Foundation and its vision regardless of the extraordinarily cost-intensive and often time-consuming requirements. Divi Labs is continually expanding its portfolio of Intellectual Property and is always looking for ways to leverage our technology to benefit the Divi Foundation and its ecosystem.
While I also helped found the Divi “Project” ecosystem (which is ultimately governed by the Divi Foundation organized as Stichting Divi in The Netherlands), I do not own shares in or control the Divi Foundation as a board member or manager of Stichting Divi. I do, however, maintain a board seat at the Divi Treasury. I bring this up to open a much-needed discussion on a more robust governance framework for the decentralized ecosystem.
Some developers have built incredible tools for the Divi ecosystem, like BoxWallet, TipBot, or the Divi off-chain lottery. Some of these ancillary projects leverage the $DIVI coin in beneficial ways but do not receive Divi Foundation grants, like Lightning Works, DiviGo, and Siege Worlds. There are opportunities, and dare I say, “needs,” for the Divi community to contribute directly to the Foundation ecosystem.
Divi Labs has long been one of the very few beneficiaries of grants from the Divi Foundation.
This status quo is something that I, both personally and as the CEO of Divi Labs, believe needs to change.
In part two of this series, I will explore how we, as a community, might accomplish this goal.
Divi Labs will continue contributing to this effort by managing cost-cutting measures, streamlining strategic initiatives, and developing a broader opportunity for builders to contribute to the ecosystem.
Please join me for a Twitter Space this Friday to discuss the concepts discussed here, and look out for the next post in the series, to be launched one week from today.
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