Entities and Roles

Foundation

The Foundation is the legal and administrative vehicle that safeguards protocol ownership and ensures regulatory alignment. Though ultimately governed by token holders, the Foundation exists to execute DAO-approved proposals, manage assets, and interface with legal and financial infrastructure.

Responsibilities of the Foundation include:

• Custody and legal title of Bitcoin mining assets and treasury reserves

• Execution of validator-approved actions

• Appointment of the operations team (subject to validator confirmation)

• Compliance and regulatory administration

• Governance tooling and record-keeping

Token Holders

$HS token holders are the ultimate source of authority within the HashStrategy protocol. Through staking, holders activate their governance rights and may delegate voting power to a validator of their choice. This delegation-based system enables representative decision-making while preserving decentralized ownership. Token holders retain full discretion over their delegation and may reassign it at any time, ensuring that validators remain accountable to the broader community. While execution authority resides with validators and the operations team, all governance legitimacy originates from the collective stake of token holders.

Powers and rights of token holders include:

• Delegating voting power to Validators of their choice

• Submitting proposals to the governance forum

• Participating in temperature checks

• Initiating veto votes during execution timelocks

• Changing or revoking delegation at any time

Validators

Validators serve as the protocol’s representative governing council. They are selected through delegation and entrusted with voting on all binding proposals. Their voting power reflects the amount of $HS delegated to them, with a cap to prevent centralization of control.

Core responsibilities of Validators:

• Voting on HashStrategy Improvement Proposals (HIPs)

• Evaluating treasury proposals and capital deployment

• Appointing and reviewing the operations team

• Auditing mining operations and BTC reserve performance

• Publishing governance reports and engaging with the community

Participation Requirement:

• Validators must vote on at least 80% of governance proposals to remain in good standing

Voting Weight Cap:

• No single validator may exercise more than 40% of total voting power in any single proposal

Operations Team

The operations team is responsible for executing the protocol’s daily functions, including mining infrastructure management and treasury productivity. The team is appointed by the Foundation, subject to Validator approval, and operates under the governance framework defined by the DAO.

Responsibilities include:

• Managing and scaling Bitcoin mining infrastructure

• Administering BTC custody and yield-generating strategies

• Reporting operational metrics and capital performance

• Executing validator-approved proposals and maintaining infrastructure integrity

While empowered to act on behalf of the DAO, the operations team remains accountable to validators and may be replaced through governance processes.