❗ The specific details of this auditing scheme are under consideration and are subject to significant changes.In the wake of FTX, we are acutely aware of the importance of guaranteeing the existence and safety of ISC Reserves’ funds. To address this concern, we commit to regular independent audits of the ISC Reserves. The selection and election of the auditor will be carried out through our own DAO model, where the final say is democratically held by the DAO.
The auditor will have the authority to review the assets held by each ISC Reserve and is responsible for presenting a report to the community detailing their findings. While some information must remain confidential, we fully anticipate (and encourage) the auditor to disclose the most critical piece of information: the status of ISC Reserves’ funds. All ISC Reserves must consent to quarterly audits conducted by the auditor.
Audits for each ISC Reserve occur on a quarterly basis, with elections for the ISC Auditor taking place prior to each audit round. The auditor could be the same one who conducted the previous round of audits, or an entirely new auditor may take on the role.
The ISC Issuer has oversight over the ISC Reserves through the terms of the ISC loan agreement, which allows it to monitor and audit the operations of the ISC Reserves directly. The ISC Issuer and the community, has the authority to recall ISC loans from ISC Reserves at any given time, for any reason
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