# Annual Review and Spending Audit Proposal

At Kleros Labs, we recognize the concerns raised by some DAO members in this proposal however we have chosen to vote “AGAINST” it.

We find the title of the proposal in Decent to be misleading. While we believe conducting a one-year review is a best practice, the proposal fails to explicitly state that it will result in the complete termination of all funding in its title. Additionally, the proposed audit cost of $30,000 isn’t explicitly written, and seems high, especially considering that all relevant information is publicly available.

In our view, this proposal does not provide an appropriate solution. A grant to Brainbot was previously approved by vote, and the allocated amounts were agreed upon. Abruptly cutting funding entirely without prior notice is not a fair business practice. To the best of our knowledge, Brainbot remains the service provider with the requisite technical expertise for the success of Shutter DAO.

Nevertheless, given the current market conditions (that also affect the whole industry btw) and the short runway, we strongly encourage Brainbot to hear the concerns of those DAO members and propose a more streamlined approach in a separate proposal. Only through a constructive dialogue involving all community members can we ensure the success of the DAO and the SHU token.

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DAOplomats have thoroughly evaluated the proposal’s outcomes and individually engaged with the parties involved. We reached the following conclusion and voted NO on the proposal.

The proposal stems from token holders’ dissatisfaction with the SHU token price and calls for cutting funding to the primary contributor of the Shutter Network. While the on-chain proposal might temporarily ease treasury outflows, it could negatively impact the continued development of the Shutter Protocol and its core product.

As a founder in the Web3 space, I believe that during times of turmoil, the community should rally behind the team and support the developers in building. Sidelining the core team will not benefit the Shutter Protocol or the DAO.

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Working efficient and improving costs is good. Tighten spending – ok!

But to me this looks like finding a scapegoat.

The question is, what could have you, we contribute to help to make Shutter a success/progress? Including me, who has done nothing for the last 12 months.

If this proposal goes through, there is little trust in the entire DAO and the service providers. If you want to finger point to a scapegoat, we all would have failed.

1. We Already Have Transparency

The work is open-source, monthly reports are provided, AMA, and now office hours are open for anyone to ask questions. If someone wants to know how funds are being used or check progress, they already can. Adding another layer of audits feels unnecessary and redundant.

Checkout:

Reports:

In none of the reports except the first time 20 days ago by the author of this proposal (Brainbot Update for January 2025 - #2 by Ricosworksa) there were comments or concerns about the reports/numbers and activities.

The ultimate goal of shutter/brainbot is to accrue value to its token - for the community - So that the whole system can work. So far, it has been a fiasco, far worse than the rest of the market (for those who like to compare), although there were mostly insider in the shutter token. This is clear, and will need to be scrutinised. It’s a real shame to see shutter’s value being destroyed like that. It has to stop.

That’s a great idea but how can the DAO/Shutter achieve it? What can we do and execute to achieve token value?

The expectations are for the review/audit exactly what? What would the DAO or it’s member benefit of additional insights? What “detailed” report do we need?

IMHO, the only insight we might have is to cutting cost here and there. Ok, but what other insights are we going to have to “spotlight success and growth”)?

As someone who’s seen how software projects succeed (and fail), it’s clear that agile development isn’t just a method—it’s a necessity, especially in complex areas like L1/L2 and privacy protocols. The core idea is simple: build, test, learn, and adapt. And that’s exactly what Brainbot has been doing.

But here’s the thing—agile isn’t about hitting every milestone perfectly on the first try. It’s about iterating based on feedback. It’s about open conversations when things get stuck, which is already happening through reports, office hours, and community discussions.

The history of tech is full of examples where teams slowed down because they were forced into rigid processes or audits instead of focusing on building. The DAO’s strength is its flexibility, its openness, and its ability to adapt quickly. That’s what we should protect.

If there’s frustration about progress or outcomes, that’s fair. But the solution isn’t to throw more processes at it—it’s to tighten the feedback loops we already have. More direct conversations. Clearer goals. And a focus on outcomes that actually matter.

The reality is, development is messy. Progress isn’t always linear. But the best results come when teams feel trusted to build, knowing that the community is there for support, not for more paperwork.

Let’s stay focused on that. Let’s build, learn, and adapt—together.

2. Pausing Payments is Risky

Halting payments and grants could seriously disrupt ongoing work. We risk losing momentum, damaging relationships, and delaying progress—especially when the crypto space is already competitive. The focus should be on moving forward, not slowing down.

3. The Cost is Hard to Justify

Spending nearly $30,000 on an audit when the treasury runway is tight doesn’t make sense. That money could go into actual development or BD efforts instead of paying for a report that tells us what we already know. You can write a small piece of software that can monitor github repos, X/twitter time line to get something like this (https://x.com/i/grok/share/4J12ysbN4u1cX5hpMNwRHQ8fm) . For the financial spending, the only way to justify this is to compare the spendings with a similar project with similar team size and complexity. Breaking the cost down won’t help anyone. Important is to understand how the development process is (CI, automation, testing, etc.) where improvements can be made to increase the speed of delivery but keeping quality.

4. It Sends the Wrong Message

We trust Brainbot enough to fund their work, involve them in discussions, and rely on their updates. Pushing for a formal audit implies we don’t trust them, which could hurt morale and create unnecessary friction.

5. It’s Overly Bureaucratic

This is a DAO, not a corporation. We’re built on community, transparency, and trust. Adding more processes and paperwork slows us down (need more coordination) and moves us away from our cooperative values.

6. There Are Better Alternatives

If there are real concerns, let’s fix it in simpler ways:

Improve the monthly reports with more specifics on milestones and spending as suggested.

Host frequent community sessions to ask deeper questions.

Set up a simple treasury dashboard so everyone can track spending in real-time.

Review big grants as a community without needing a full audit.

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Audit probably is a misnomer. It is partial my fault as I did work with other members on this proposal and I am not a native speaker

It should probably be called as a review to see what work and what does not. Afterall, 3m has been spent. These are important data to reach agreement among us in the future.

But really a lot of this question has been asked but brainbot refuse to provide an answer. Without a vote (they might still refuse to provide), we simply cannot get the data.

In the report they share there are a lot of expense item does not have good level of transparency or even look relevant to Shutter Network or Shutter 0x36 DAO.

Many areas has been stagnated. It might related to brainbot might not. But we need to know why BD has almost no progress since last year to make decision in the future.

This is not finding scapegoat but save what is left in the DAO and hopefully can make it last a bit longer

Additionally I believe the title is not deceptive and clear state pause all payments. I personally mention this proppsal to Loring last weekend so it should not be a surprise and a forum post has been posted few days before.

I also believe brainbot has recently claim the funding from the stream in this month or a bit week ago so I don’t think they are not paid . (Happy to be correct if if that was for last month or other cases)

Hi Han,

Thanks for your comments. To clarify a few points:

brainbot has published monthly in the Shutter Forum reports every month for the past 6 months. We did not receive any feedback or questions.

What questions has brainbot refused to answer? Please share links.

brainbot has been paid for our work up to 28 Feb 2025. The last payment delivered to brainbot by the Sablier stream was on 16 February 2025. See: Stream #LT3-1-429 | Sablier

brainbot has not been paid for our work under the monthly recurring grant from 1 March to present.

This transaction shown the last claim was 20 February and braintbot claimed 205,405 sDAI but not in 16 February

Ethereum Transaction Hash (Txhash) Details | Etherscan

To show brainbot willing to increase the transparency. brainbot should at least outline how is 205405 DAI spent in just 20 days

I believe the difference in dates here is that the trench released the funds to be claimed on the 16th, but the actual withdraw transaction took place on the 20th.

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The monthly report does not have good level of transparency on how these work related to Shutter 0x36 DAO, Shutter Network or token holders. I think in private conversation with you, I raise these questions.

There are questions in the Shutter Friends group regrading these as well. I believe you have access to that group.

I can repeat provide one question were asked:

When one member asking about burnrate of brainbot and future plan, one brainbot employee refuse to answer and suggest the DAO to stop the payment via a vote. So in a way cancel the payment is what brainbot has been asking for

brainbot wishes to make an initial statement regarding the Annual Review and Spending Audit Proposal, Decent Proposal 60 vote, and resulting discussion:

  • Decent Proposal 60 garnered record voting participation and an overwhelming amount of discussion. We see this as a positive development. We hope Shutter DAO 0x36 members can sustain this level of engagement in the future. We also see significant challenges facing Shutter DAO 0x36 governance. We will offer our observations and suggest opportunities for Shutter DAO 0x36 to improve.

  • brainbot will propose the cancellation of the current monthly recurring grant and simultaneously propose a new, reduced grant. In order to ensure the new grant is optimized for Shutter DAO 0x36’s priorities, brainbot has initiated a discussion regarding Shutter priorities moving forward in the Shutter Forum. Please join the discussion here: Discussion Regarding Priorities (Re-Posted).

  • brainbot is happy to answer questions and provide more information about the Shutter project and our work. We have opened a new topic in the Shutter Forum to ensure this process is orderly and constructive. Please post questions and make requests for more information here Questions for brainbot. We will reply within a reasonable timeframe and as comprehensively as possible.

brainbot will issue a more robust statement in the coming days.

Even though the proposal 60 did not pass but it reached quorum with one of the highest turnout.

I believe various community members and delegates have been expressed they would like to see briantbot cut the budget that is good outcome in our opinion

We have some token were not delegate at snapshot time but we will not resubmit the proposal 60. I urge other do not so as well, let’s give brainbot some time to present the new budget and make improvement

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