Callisto Network Treasury (0x74682Fc32007aF0b6118F259cBe7bCCC21641600) is the main on-chain governance account on Callisto Network. There are two secondary on-chain governance accounts:
- Staking Reserve (was used during the launch stage)
- 0x67c20e815D9016CfE04e905A409D276BF1f52b67 <= this one is important for us now. It was used during the 2miners reward paybacks at the launch stage of Callisto. Can be found in our old financial report.
The rules of Treasury management are:
- Each founder can utilize 33% of the Treasury at his own discretion.
- If a transaction that exceeds 33% needs to be sent then the other founder needs to be notified. If the transaction is approved by both founders then it can be sent.
- Significant funds transfers must be commented publicly. Callisto adheres to the policy of financial transparency.
On Feb 15th, Callisto Enterprise transferred all funds from the Treasury ($18,000) to a multisig that I'm not part of (or they asked Yohan to send this transfer). This violates two Treasury governance rules as I was not notified and the transfer was not approved by me and they didn't comment it on-chain.
In response, a governance feature of the Callisto Enterprise's SOY token was invoked from the secondary on-chain governance account of Callisto which caused Callisto Enterprise to involuntarily pay back the CLO that they didn't right to withdraw from Treasury by liquidating their SOY tokens. This is on-chain governance in action: if the social layer agreement is violated, the code is executed.
It is unclear to me why Callisto Enterprise ended in a situation where they either don't have the private key of the secondary governance account 0x67c20e815D9016CfE04e905A409D276BF1f52b67, or Yohan didn't transferred the key to them, or they lost it and therefore were unable to revoke the owner permission and instead asked me to revoke it.
No coins were stolen. Liquidity providers will get their refund once the governance issues are solved. 50% of the Treasury funds and the required amount of CLO to refund the SOY liquidity providers is currently stored in this Callisto Enterprise's multisig. Another 50% of the Treasury is currently stored in this wallet. In order to avoid speculations if @Dexaran was hacked or not I'm putting the funds to the same wallet that I used to launch a dust attack on 2bears exchange before. SloFi will not be affected as the required amount to compensate for the unaothorized transfer performed by Callisto Enterprise is already gathered. The CLO in 0x3264Fb22a50ecadc6DFd0F0e1938a0eef965C491 will be managed in exactly the same way as it was done with the Treasury and it will be subject to our policy of financial transparency as the result. If Callisto Enterprise will agree to refund the SOY users then they will have their 50% of the Treasury in their multisig after the refund is completed.
I'm in favor of discussing our future steps with Callisto Enterprise in an open CLOIP proposal:
It is evident that the "trust" model of the governance was exploited and we need to switch to a trustless model of Treasury governance. For this I propose to split it on the protocol level to create two separate "Treasury accounts", one will be governed by Callisto Network and the other can be governed by Callisto Enterprise as I respect Yohan's decision.
A conflict between Callisto Enterprise's founder (Vladimir Vencalek) and his former business partner started in late 2022 - early 2023 (here is an article). At this point the funding of Callisto Enterprise stopped. Shortly after Michael Broda stepped down as a CEO.
The last payment I received from Callisto Enterprise was on December 9, 2022. The team worked for many months without payments mostly because we trusted in Callisto Enterprise but the situation with funding is still not resolved and Callisto Enterprise was not able to pay for any development since 2023 that I'm aware of (or if they did paid some developers - it's another question of why they could pay new developers instead of paying their debts).
On June 8, 2023 I provided a loan of 80 ETH (here is the transaction) to Callisto Enterprise in an attempt to save them. After that moment the development was only paid with my funds.
As of now Callisto Enterprise owes me a total of $380,000. They also have a huge amount of unpaid invoices to Absolute Wallet team and other members of the team who agreed to work with them while they were not able to pay immediately. I would greatly appreciate if the other team members could confirm my statements as many of them are in a similar situation right now.
Unlike Callisto Enterprise I'm not in a dire need of funds, not in debts and not under lawsuits. I have quite significant personal assets, my secondary project (Dex223) is doing great and we raised 300% of the required funds in the previous round (here is our financial report, here are our funds: address1, address2, address3). I don't care that much about ~$8000 worth of CLO but I do care about Callisto Network governance therefore I will not be utilizing the CLO coins for anything until the final decision regarding the management of Treasury funds is made.
On September 5, 2023 I contacted @Tonton, the current CEO of Callisto Enterprise and a head marketing department executive on Callisto Network and asked to give me a direct control to Callisto Network twitter account (twitter.com/CallistoSupport). He refused to do so saying that Callisto Enterprise will control it now. I've escalated this issue on Callisto Enterprise core team call and we came to a conclusion that we will set up a process that will allow a decentralized management of the media resources. This was a direct violation of my previous agreement with Yohan as all founders should have access to the media accounts without censorship from the other party.
On October 6 we had a significant disagreement regarding an article published by @Tonton via twitter.com/CallistoSupport account without my approval and I've raised the problem of media resources management once again as Callisto Enterprise remained in control of the Callisto Network twitter account.
We discussed this issue with Vladimir Vencalek but couldn't reach an agreement that would suffice both of us. Callisto Enterprise remained in control over the media accounts and kept refusing to give me the access.
I've escalated the issue to Karel Fillner but he replied that we have to solve the internal issue ourselves and he can't help in any way.
Some of the discussions mentioned in this section are accessible to other Callisto Network/Enterprise team members (t.me/tamilselvam412, t.me/yuriy77k, t.me/Diii201, t.me/jdopdyke, t.me/zvse3 and others) who can confirm my repeated attempts to raise the problem of media resources, announcements and my concerns regarding Callisto Enterprise attempting to take over Callisto Network by occupying media resources.
On Jan 17, 2024 Callisto Enterprise announced with it's account that "#CallistoNetwork Treasury will empower #Cryptocommunity like never before." and retweeted it with @CallistoSupport account (that they still control).
https://twitter.com/CLOEnterprise/status/1747562261684650350
This announcement was not discussed or agreed upon with me and it looks like since that moment Callisto Enterprise started thinking of Treasury as their property.
As the discussion regarding twitter account was ongoing at the moment when Callisto Enterprise asked me to revoke owner permission from the SOY token I decided to step aside and replied "Owner is not my personal account, you should have control, do it yourselves" assuming that they should be able to do so. Since Callisto Enterprise didn't revoke the owner permission from SOY token at the moment of withdrawing the funds from Treasury it looks like they don't have the private keys of the secondary on-chain governance accounts.
If you are trying to scam your partner - you can at least do it professionaly. First remove your partnet's governance permissions, next steal the money. Not in reverse order. This makes me hope that the Treasury withdrawal accident was a miscommunication issue, not an intentional move from Callisto Enterprise, but it's still unclear to me. What is clear is the need to switch to the trustless Treasury system with the next hardfork.
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Lack of transparency. I was always in favor of financial transparency, this is the first thing that I'm doing when starting a new project (Financial transparencies of Dex223, EthereumCommonwealth, Callisto Network). When the funding crisis of Callisto Enterprise started it was decided that there is no need to disclose the situation to the community. I respect Callisto Enterprise's decisions and I have no influence there. But I do care about what is going on with Callisto Network and the lack of transparency must not resort to faking activity.
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Low quality content. As it was mentioned earlier Callisto Enterprise doesn't have any funding for more than a year and now @TontonBenz resorted to some questionable yet cheap means of marketing. In absence of funding @TontonBenz has written a number of articles using his community account (Callistonians) but tried to represent it as a community generated content that was paid for. For example this article. In my opinion at this point the actions of Callisto Enterprise are starting to damage the reputation of Callisto NETWORK hence I escalated the conflict around media resources in a hope of resolving it internally. In my opinion transparency would be required and in absence of marketing funds we could just expand on other chains communities. I proposed to join Discords, telegram channels and subreddits of L2s and other EVM-chains and spread the word about Callisto there at the same time advertising our auditing services. It would be more beneficial than faking "paid articles" that were not even paid.
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Attempts to seize the control of Callisto NETWORK resources (like twitter account, reddit, moving projects from EthereumCommonwealth github to their own and then making them private).
Callisto Network was founded by me (@Dexaran, an anonymous security engineer) and Yohan Graterol in 2018 (this article describes its background and here is a github thread that contains the history of Callisto's early days).
Before the launch of Callisto Network Yohan was my employee in EthereumCommonwealth and then he became a co-founder and a partner in Callisto Network. As I was anonymous I couldn't pay with my credit cards for services and couldn't sign legal documents so this was delegated to Yohan.
We had a set of agreements regarding the governance of the project:
- Treasury. Treasury is an account that receives a % fee from every block mined on Callisto Network. This is just an externally owned address. Dexaran and Yohan initially had a private key from this address so both could send any transactions. There was an agreement between Dexaran and Yohan that 33% of funds can be spent by any founder each month without notifying the other. If there needs to be a bigger transfer of funds - then the founder who is going to process the transfer must notify the other and wait 7 days for a reply. If the discussion started then the issue must be resolved within that private discussion. Otherwise if there is no reply then the funds can be spent.
- Media resources (twitter, reddit, telegram, web page). It was agreed that both founders must have access to this resources. However as Dexaran remained anonymous the accounts were registered by Yohan. In order to compensate this control disbalance an on-chain smart-contract called "Officiality Checker" was created (on April 21, 2018) and Dexaran had control over it. It was agreed that whatever resources are in marked as "official" in the contract on-chain - will be considered the source of official info. Here is the officiality checker documentation in Callisto roadmap. Here is the Officiality Checker UI.
- Salaries. Founders and key advisers were assigned a fixed monthly salary (it is described in the initial version of the whitepaper). Other salaries were paid by each founder to employees who were hired by him with respect to pt.1 Treasury management rule.
Before the CLO currency became tradeable Dexaran paid for all the expenses and exchange listings which included all the pre-listing salaries, all the development expenses, listings on Bitfinex, Stocks.exchange, HITBTC and other smaller exchanges of that time. A total of 44.38 BTC (approximately $500,000 at that time) were spent. Here is a tweet.