Conflict of Interest policy

Draft, Version 1 - October 2024

This policy is designed to ensure that the Committee operates transparently, efficiently, and with integrity as the liquidity platform for the Cosmos ecosystem.

Definition

A conflict of interest exists when a Hydro Committee member has a personal or financial interest that may affect their impartiality in decision-making. This includes, but is not limited to:

• Being associated with or part of a potential bidder or project.
• Having a direct or indirect investment in a potential bidding project.
• Receiving any economic benefit from a project or bidder under review by the Committee.
• Anticipating any of the above in the near future.

Note: Direct or indirect investment does not include open market trades or standard investment holdings in publicly traded tokens (e.g., OSMO, ATOM), which are common in the Cosmos ecosystem. However, members must disclose any substantial investments or positions that could uniquely influence their impartiality.

Policy

Disclosure of Conflicts: Any Committee member who recognizes a potential conflict of interest must disclose it to the other members. Conflicts should be disclosed transparently in both internal discussions and public announcements when relevant.

Abstention from Decision-Making: If a Committee member has a conflict with a project, they must abstain from any decision-making or voting related to that project. This includes discussions surrounding project funding and liquidity allocation. Members with conflicts may still provide neutral, factual information about the process but cannot influence the decision.

Trust & Ethics: Members are trusted to abide by the COI policy to maintain the integrity of Hydro’s operations. Violations of the COI policy or failure to disclose conflicts will result in disciplinary actions, up to and including removal from the Committee.

Enforcement

The Hydro Committee, while voluntary, is responsible for maintaining these standards. Any violations of the Code of Conduct or COI policy will be reviewed by the Committee, and appropriate actions will be taken, including removal from the Committee. By adhering to this policy, the Hydro Committee ensures the platform remains a trusted and effective liquidity solution for the Cosmos Hub and its community.

Standards of behavior

Transparency & Integrity: All Hydro Committee members are expected to conduct themselves with the highest standards of transparency and integrity. All decisions must be made with impartiality, ensuring that they are free from personal interests or biases.

Collaboration: Members must foster a respectful and collaborative working environment. Open communication and mutual respect are essential for the success of the Committee’s operations.

Commitment to the Cosmos Hub: The primary mandate of the Hydro Committee is to serve the Hub community by optimizing liquidity distribution and governance processes. Decisions should align with this goal, and any actions that deviate from this mandate are not permitted.

Zero Tolerance for Corruption: The Hydro Committee has a strict zero-tolerance policy towards corrupt practices. Any form of bribery, misallocation of funds, or manipulation of the bidding process will result in immediate expulsion from the Committee.