REV 0.01 - 10 July 2014

Note: This is an early rough draft and all items are subject to change based on community feedback.

The Crypti Foundation is being initiated by the original Crypti development team. We will be transitioning development from a closed internal team (pre-launch) to a public facing and open organization that will communicate and work with the community to help shape the future of Crypti.

Membership:

The Crypti Foundation will consist of two layers of membership.

The first will be a board consisting of the 5 major parties responsible for the creation of Crypti as well as 5 additional community members. This will be the core of the Crypti Foundation.

The Foundation Board will at all times maintain 10 members. Members may be ousted from the Board by a majority vote of 7 out of 10 members. This will ensure that a consensus exists. Once a board member has been ousted, a new board member will be voted in by a unanimous vote of the remaining board members within a 90 day period from the date the previous member was ousted. This will give enough time for prominent community members to campaign for the seat.

The Board:

• A.M., Initial Investor
• Boris Povod, Creator & Primary Developer
• SyRenity, Developer & Advisor
• Grexx, Creative Design & Consulting
• Mike Doty, Engineer & Financial Analyst

The 5 Initial Community Members

The initial community members chosen for the Crypti Foundation board will be the 5 community members holding the largest proportional stake of the genesis block that are willing to accept a seat on the board. If one of the top 5 investors chooses not to maintain a seat on the board, the seat will fall to the next highest investor. This is to ensure that all board members have a vested stake in the success of Crypti.

The Crypti Council

The 2nd layer of membership in the Foundation will be a council of influential community members who will help bring forward ideas for development. The council will consist of 15 members who will be voted on by the board. A majority vote of 6 out of 10 of the board is required to promote or remove a member of the council.

Council members will have direct access to the board and the board will take all actions brought forward by the council under review and will vote to accept, delay, or deny said actions. In essence, these votes would equate to Yes, Postpone, or No.

Any action brought forward by the Council will require a majority vote of the board in order to reach a consensus. If the vote will require funds release from the Foundation wallets, a majority vote of the board will always be required.

The Initial 15 Council Members

The first 15 council members will be the 15 community members holding the next largest proportional stake, after the selection of the board, that are willing to accept a seat on the Council. If one of the 15 investors chooses not to maintain a seat on the Council, the seat will fall to the next highest investor. This is to ensure that all Council members have a vested stake in the success of Crypti.

Funding:

The Crypti Foundation will initially be funded by the pre-sale and genesis funds as part of the Crypti launch.

This will include:

• BTC earned in the Pre-Sale investment round.
• A 0-10% stake of the genesis block designated for development (Dependant on Total BTC Raised).

Funds will be maintained in a public wallet and all spending will be transparent to the community. This will help encourage participation and show that Crypti has a strong and prosperous future. All actions requiring funds be distributed from the official Crypti Foundation wallets will require a majority vote of the board.

Development Team Funds

The 15% development team fund being distributed in the genesis block will be maintained by the Crypti Foundation Board until the time of release of each block.

The release schedule will be on a quarterly basis (every 3 months) and will continue for the first 12 months after launch. All funds are guaranteed to be distributed to the development team responsible for Crypti as outlined below unless a majority vote of the board postpones payment due to lack of accomplishment and goal satisfaction.

Foundation Goals:

The Crypti Foundation Board and Council will be responsible for setting the future course for the development and growth of Crypti.

The Foundation will determine the projects, goals, and deadlines by a monthly vote requiring all members votes be cast within 5 days of opening of Items. Any Board member who casts no vote for 3 consecutive months will be automatically removed from the Board and the remaining Board members will have 90 days to nominate and select a replacement.

Each month, the Council will bring forward items from the community that have reached enough support to qualify for Board consideration. The mechanism for representing adequate support will be announced shortly.

All items will be brought to the Board and nominated by the 10th day of each month. The Board will open all items for vote within 10 days of nomination and all votes must be cast and the item closed within 5 days. Votes may be Accept, Delay, or Deny.

ACCEPT

If an item vote results in “Accept”, the item will be supported by the Crypti Foundation.

If the members of the community bringing the item to the Board have the capability to produce and bring to market the item themselves and are asking for funding, a secondary vote of the Board will be conducted at this time to determine the amount of funding to be awarded to the developers. This vote will be concluded within 3 days of the completion of the initial vote.

If the item is a proposal for an idea from the community that the Foundation would need to develop and bring to market, the Foundation will then internally organize and conduct the development process as resources allow. All funds spent and developers hired will be public knowledge and available from the Foundation website.

DELAY

If an item vote results in “Delay”, the item will be sent back to the community for additional development and expansion and then may be brought again for a vote, no earlier than 3 months from the date of the previous vote.

Along with the vote of delay, the Foundation will provide guidance on what should be accomplished in order to bring the item forward for a second vote.

DENY

If an item vote results in “Deny”, the item will not be supported by the Crypti Foundation and may not be brought forward for a vote again without substantial changes in design. The mechanism to determine whether or not substantial change exists will be decided by a vote of the Council to determine if they would like to bring the item forward again.