This proposal is still in progress. Polkassembly is a read-only archive: status and tallies are refreshed periodically from public indexers and may lag the chain.

[Please vote NAY] Decidimos: payout rail for Potosí's lithium revenue on Polkadot Hub (190,000 USDT)

inMedium Spender
11 days ago
Deciding

Please vote NAY on this referendum. The payment plan is wrong: it pays the full 190,000 USDT at once instead of per milestone. We will resubmit with payments tied to the milestones and link the new proposal here and in the forum thread. Thank you to everyone who gave feedback.

Summary

Heitaria Swiss AG requests 190,000 USDT over six months to build the payout rail for Decidimos on Polkadot Hub.

Decidimos is the app through which the department of Potosí, Bolivia decides how its share of the Uyuni lithium project is spent. The contract ring-fences 15% of the private partner’s profits for the department: about US$104 million a year, US$4.4 billion over the project’s 45 years, for around 860,000 residents. The decision side is built and in closed beta with the 53 indigenous communities of the TIOC Nor Lípez, in Spanish, Quechua and Aymara. The wallet runs on Polkadot mainnet and the first residents have paid a shop with it. What does not exist yet is the payout rail at scale.

Discussion: https://forum.polkadot.network/t/18650

What Polkadot gets

  • Around 860,000 residents paid every month: about 10.3 million payouts a year by Heitaria.
  • On top of that, the payments residents make themselves with that money: shops, transfers, cash-out. At three a month that is about 31 million more, so about 41 million transactions a year in total (model in post 9 of the thread).
  • About US$104 million a year in USDT settled on Asset Hub at full scale.
  • About 43,000 DOT bought by Heitaria to activate the residents’ wallets (0.05 DOT each, once), plus DOT for the payout fees every month.
  • Children's savings partly in DOT: 30% of every minor's monthly share stays locked until their 18th birthday. Part of that locked amount is used to buy DOT, which is staked on Polkadot until the child turns 18. This makes Decidimos a long-term buyer and staker of DOT, not only a user of Asset Hub.
  • Real users, not incentive farmers. The money exists because a factory produced lithium and a contract obliges the operator to pay the department.

What has already been done

Videos from Río Grande

What this grant pays for

#MilestoneMonthsUSDT
1Payout engine on Polkadot Hub: batched USDT payouts driven by the assembly-ratified community rolls, no double payment, connected to Decidimos. Our wallet hardened for mainnet scale (see below), with fees paid in USDT.1–260,000
2Recovery for mainnet: 12 recovery words plus family helpers and a trusted contact, as described in the manual. Public audit trail: every payout recorded and checkable on a public page.3–435,000
3External security audit of the wallet and the payout contracts before payouts scale up.4–545,000
4Cash-out and merchant acceptance in Río Grande and Nor Lípez: agreements with exchanges, cooperatives and shops, so residents can spend or redeem near their community.3–625,000
5Mainnet pilot payout in Río Grande, open-source release, final report.625,000
Total190,000

Wallet

We use our own wallet. It was first built for testing with the indigenous communities, and it now runs on Polkadot mainnet, where the first residents have paid a shop in Río Grande with it. The external audit covers it before payouts scale up.

The reason: payouts run for the 43–45-year life of the plant, and the sponsor needs the wallet to be maintained for that whole period. We can only promise that for software we build and maintain ourselves. The code is open source.

What this grant does not pay for

  • Long-term maintenance. Heitaria maintains the payout engine and keeps the wallet working for the 43–45-year life of the plant, funded by the sponsor, not by the treasury. The code is open source, so it never depends on us alone.
  • Fees. Heitaria pays the fees for the monthly payouts. Residents pay the fee for their own payments in USDT, deducted from their wallet, so no resident ever has to buy DOT. The treasury pays no fees.
  • DOT for each account. Heitaria sends each new wallet 0.05 DOT to activate it on chain. For around 860,000 residents that is about 43,000 DOT, once, paid by Heitaria, not by the treasury.
  • The governance platform. It is already built.

Reporting

After each milestone we post a public update in the forum thread covering what shipped, the contract addresses and what failed. From milestone 1 we publish the real fee per transaction, replacing the estimate in post 9. All code is open source, so the next extractive project inherits a rail rather than a debate.

Timing

The plant runs a pilot from year 3 and the main plant from year 6, so the volume figures above are the steady state. The Río Grande pilot payout happens inside the grant period.

Team

Heitaria Swiss AG, Rigistrasse 1, 6374 Buochs, Switzerland, trading since 2013.
Paul Schmidt (CEO), Willi Brose (co-founder).
Project sponsor: ACI Systems Alemania, with German export credit cover (Euler Hermes / UFK).
schmidt@heitaria.ch · +41 78 339 59 77

Comments (2)

8 days ago

SUBMITTING ENTITY: Kebarah
ACCOUNT SIGNATURE: 1xuffkw8Kgbgrux493va49bhF5xwQAhsmrsCp8sWL7C1bQV
TARGET PROPOSAL: Polkadot OpenGov Referendum 1963
PROPOSAL TITLE: Decidimos: Payout Rail for Potosí's Lithium Revenue on Polkadot Hub
TARGET TRACK: Asset Hub Medium Spender (Track 12)
REQUESTED CAPITAL: 190,000 USDT
PREIMAGE HASH: 0xfd82c7c95ebbdc882e7ddc4b4cc4a816bf657e9c26d56fbf733bba0c4342bbe7
BENEFICIARY ADDRESS: 0x069c006286a0c1911fcc8644751eb3f5818a9c7201bbb063357ad88bb557cc11
PROPOSING ENTITY: Heitaria Swiss AG (Commercial Registry UID CHE-269.621.029, Buochs, Switzerland)
AUDIT POSTURE: Independent Fiduciary & Technical Governance Review
DEFINITIVE RECOMMENDATION: HARD NAY

EXECUTIVE SUMMARY

Referendum 1963 requests an immediate, single-tranche disbursement of 190,000 USDT from the Polkadot Asset Hub treasury to construct an off-chain revenue distribution rail for lithium mining dividends in the Department of Potosí, Bolivia. The proposal advertises an alleged 104,000,000 USD annual sovereign revenue settlement stream settling 10,000,000 transactions per year on Polkadot, while promising to onboard 860,000 regional residents by privately funding 0.05 DOT account-seeding allocations.

Following an exhaustive forensic audit encompassing on-chain preimage verification, corporate registry analysis, and sovereign statutory legal review, Kebarah Technical Security & Governance Risk Agency advises the Polkadot community, institutional delegates, and ecosystem multi-sigs to cast an uncompromised HARD NAY.

The proposal suffers from fatal structural defects across three foundational layers:
First, absolute statutory nullity under Bolivian constitutional law, as the proposing private entity holds zero legal concessions or mining agreements with the state monopoly Yacimientos de Litio Bolivianos.
Second, an absence of programmatic on-chain escrow primitives within the dispatch preimage, transferring 100 percent of counterparty default risk onto the treasury immediately upon enactment.
Third, a corporate capitalization paradox wherein a firm capitalized at 100,000 CHF claims it will privately absorb an uncollateralized 43,000 DOT account-seeding expenditure equal to over 34 percent of its legal equity.

SECTION 1: STATUTORY AND JURISDICTIONAL LEGAL NULLITY

The central premise of the proposal—that Heitaria Swiss AG can construct and operate an automated dividend distribution mechanism for national lithium revenues—is a legal impossibility under the prevailing sovereign legal framework of the Plurinational State of Bolivia.

Under Article 369, Paragraph I of the Political Constitution of the Plurinational State of Bolivia, natural resources are the direct, indivisible, and imprescriptible property of the Bolivian people, administered exclusively by the state.

Under Bolivian Law Number 928, enacted on April 27, 2017, the state-owned enterprise Yacimientos de Litio Bolivianos (YLB) holds the absolute, non-delegable statutory monopoly over the entire productive chain of evaporitic resources in the Salar de Uyuni, spanning extraction, industrialization, and revenue commercialization. Private commercial entities cannot extract, disburse, or route sovereign evaporitic revenues without explicit bilateral treaties or supreme legislative decrees.

Corporate registry records from Canton Nidwalden, Switzerland, confirm that Heitaria Swiss AG is a private commercial firm registered with a generic corporate mandate covering asset management and software services. The entity holds zero sovereign concessions, zero operating titles, zero public-private partnership agreements, and zero formal memoranda of understanding with YLB, the Corporación Minera de Bolivia (COMIBOL), or the Bolivian Ministry of Hydrocarbons and Energies.

Because Heitaria Swiss AG possesses zero legal standing to intercept, route, or settle revenues derived from YLB state extraction, the marketed 104,000,000 USD annual settlement stream represents zero transactions in enforceable legal reality. The Polkadot treasury is being solicited to capitalize software for unauthorized revenue streams that cannot legally exist.

SECTION 2: TECHNICAL PREIMAGE ANATOMY AND ESCROW DEFICIT

A forensic inspection of the on-chain call data registered on Asset Hub at Block 22614979 resolves the exact technical architecture of preimage 0xfd82c7c95ebbdc882e7ddc4b4cc4a816bf657e9c26d56fbf733bba0c4342bbe7.

The extrinsic specifies a direct call to pallet_treasury::spend. The locatable asset parameter routes native Asset Hub Tether USDT via VersionedLocatableAsset::V4 targeting Location with PalletInstance 50 and GeneralIndex 1984. The disbursement parameter is hardcoded for exactly 190,000,000,000 units (190,000 USDT) directed to beneficiary account 0x069c006286a0c1911fcc8644751eb3f5818a9c7201bbb063357ad88bb557cc11.

The dispatch parameters execute an immediate, lump-sum transfer upon block enactment. The technical structure contains:

  1. Zero pallet_bounties integration, depriving the network of curator multi-sig oversight.
  2. Zero programmatic milestone gates, releasing 100 percent of requested capital upfront.
  3. Zero on-chain time-locks, clawback mechanisms, or proxy delays.

Once enacted, the 190,000 USDT transfers unconditionally into private off-chain custody. The Polkadot network possesses zero cryptographic or legal mechanisms to compel performance, verify off-chain progress, or recover capital upon corporate failure or regulatory prohibition. Predicating fiduciary legitimacy on future voluntary compliance violates the foundational blockchain principle of trust minimization.

SECTION 3: CORPORATE CAPITALIZATION AND SOLVENCY CONTRADICTION

The proposing entity exhibits an extreme financial leverage mismatch between its registered balance sheet and its proposed execution parameters.

Commercial Registry records (UID CHE-269.621.029) confirm that Heitaria Swiss AG operates with a total registered share capital of 100,000 CHF (approximately 115,000 USD). The requested 190,000 USDT treasury disbursement represents over 165 percent of the company's entire corporate capitalization. Disbursing public treasury capital exceeding the total corporate equity of a foreign intermediary without performance bonds or escrow guarantees represents an unacceptable exposure.

Furthermore, proposal documentation clarifies that Heitaria Swiss AG purports to privately absorb the cost of seeding 860,000 resident accounts with 0.05 DOT each, requiring 43,000 DOT out-of-pocket. At current macroeconomic valuations (0.93 to 1.01 USD per DOT), purchasing 43,000 DOT requires an outlay of 39,990 to 43,430 USD.

Committing over 40,000 USD in private liquid assets requires Heitaria Swiss AG to expend between 34.7 percent and 37.7 percent of its entire registered corporate equity on uncollateralized, fractional wallet seeding in a foreign jurisdiction where it holds zero extraction mandates. A corporate entity capitalized at 100,000 CHF cannot credibly commit over one-third of its balance sheet to seed unverified blockchain wallets for a sovereign mineral operation it has no legal right to administer. This unmasks the claim as either a severe solvency contradiction or an empty, unenforceable promotional promise.

SECTION 4: SYBIL-EXPOSED ACCOUNT SEEDING VULNERABILITY

The proposed mechanism to onboard 860,000 residents across Potosí creates a severe programmatic liquidity vulnerability.

Dispersing 0.05 DOT across batch-generated public keys without proof-of-personhood verification, decentralized identity (DID) credentials, or People Chain attestation (Fellowship RFC-0007) provides zero sybil resistance.

Because existential deposit requirements on Asset Hub require 0.01 DOT, dispersing 0.05 DOT leaves 0.04 DOT liquid per address. This provides zero economic friction against programmatic automated sweeping scripts. An off-chain actor can generate arbitrary keypairs, sweep the fractional DOT balances, and deplete capital while establishing zero authentic, retained human users. Seeding un-attested addresses constitutes a dilutive liquidity leak that subsidizes vanity registration metrics without generating network value.

SECTION 5: CAPITAL ARBITRAGE AND COUNTERPARTY RISK ANALYSIS

Referendum 1963 introduces two critical structural risk vectors that threaten treasury capital:

Stablecoin Margin Arbitrage and Foreign Exchange Risk Transfer:
The proposer routes an uncollateralized commercial enterprise through the Asset Hub Medium Spender track denominated in liquid USDT. This locks in stable fiat-equivalent corporate funding while transferring total macroeconomic foreign exchange and systemic execution risk entirely onto the public treasury during an acute market compression phase.

Absence of Cryptographic Recourse in Real-World Asset Claims:
The proposal solicits public funds against sovereign lithium revenues without verifiable legal concessions, cryptographic liens, on-chain escrow primitives, or enforceable sovereign indemnification.

SECTION 6: INSTITUTIONAL SEVERITY CLASSIFICATION & FINAL VERDICT

CRITICAL SEVERITY: Constitutional Statutory and Jurisdictional Nullity under Bolivian Constitution Article 369 and Law 928.
HIGH OPERATIONAL SEVERITY: Complete Absence of On-Chain Escrow Primitives and Unconditioned Lump-Sum Disbursement in Preimage 0xfd82...bbe7.
HIGH FINANCIAL SEVERITY: Proposer Capitalization Mismatch and Corporate Solvency Contradiction Exceeding 165 Percent of Registered Equity.
MEDIUM SEVERITY: Sybil-Exposed Account Seeding and Onboarding Liquidity Leak via 43,000 DOT Un-Attested Dispersion.
INFORMATIONAL: Stablecoin Allocation Arbitrage During Macroeconomic Native Token Compression.

FINAL RECOMMENDATION: HARD NAY

Referendum 1963 fails minimum standards of architectural soundness, legal feasibility, and fiduciary security. Approving an unconditioned lump-sum spend for an unauthorized intermediary would establish a disastrous precedent for Polkadot OpenGov.

Kebarah registers a definitive HARD NAY recommendation.

3 days ago

Thank you for the review, Kebarah. Scrutiny is what OpenGov is for. On one point we agree with you, and we had already acted on it. On the rest, the report's central claims are wrong, so here they are one by one.

1. You audited numbers that are not in the proposal. The US$104M stream, the ten million transactions and the 860,000 monthly recipients come from post 9 of the discussion thread: an earlier model we corrected publicly, in this thread and in the on-chain proposal text itself. The live proposal says: about US$53.9M a year through Decidimos, roughly US$2.3 billion over the 43 years of production; about US$6.3M a year as monthly cash to about 14,000 residents of Río Grande and Nor Lípez (about 170,000 payouts a year); about US$47.6M a year as the works fund the department votes on; and the Dividendo Potosí only when lithium stays above US$20,000/t for 12 months. A forensic audit that quotes the superseded figures as "advertised" has audited a proposal that is not on chain.

2. "Statutory nullity": Decidimos does not touch state revenues. Nobody disputes Article 369 or YLB's role in extraction. But the money Decidimos distributes is not YLB revenue, not royalties and not taxes. It is the private partner's contractual benefit-sharing payments to the communities, paid from the private side of the project. The state's 51%, taxes and royalties are paid in full through state channels and never pass through us. Heitaria operates under a mandate from the project's private sponsor, a German industrial partner whose financing carries German export credit cover (Euler Hermes / UFK), and under memoranda signed with CUPCONL, the organisation of the 53 communities, and with Río Grande. We have never claimed agreements with YLB or COMIBOL, because paying a private company's contractual obligations to private persons does not require one. And the proposal says openly that payments start with production, and that the new lithium law and the state's consultation with the communities come first.

3. Escrow and milestones: here we agree, and we already acted. Before your post, we asked voters to vote NAY on this referendum ourselves, because the payment plan was wrong: it pays the full 190,000 USDT at once instead of per milestone. We will resubmit with every payment tied to a milestone and link the new proposal here and in the forum thread. What stays the same: after each milestone we post the contract addresses, the real fee per transaction and what failed, and all code is open source.

4. Capitalization. Registered share capital is not a balance sheet. Heitaria has operated since 2013 and built the governance platform, the wallet and the contracts on its own funds, with no outside money. The 43,000 DOT claim misreads the proposal: near-term seeding is about 700 DOT (about US$700) for the 14,000 monthly recipients. 43,000 DOT would only be reached if and when every wallet in the department registers for the dividend, years into production, when operations are funded by the sponsor under the mandate contract. All seeding and all payout fees are paid by Heitaria, never by the treasury. The treasury's exposure is the grant for the milestones, nothing else.

5. Sybil. The wallets are not batch-generated keypairs. Decidimos is already live on the Apple App Store, with Android in closed testing on Google Play, and the first residents have already paid a shop in Río Grande with real USDT on Asset Hub. Each wallet is created on a resident's own phone, identity is checked once against the national cédula and only a hash is kept, one wallet per person. Payout lists come from the assembly-ratified community rolls, and CUPCONL can veto any list and freeze the contracts. Seeding goes only to wallets on those rolls, with Heitaria's own DOT. A sweeping script does not get past a padrón ratified in a village assembly.

6. Process. Kebarah did not ask us a single question before publishing, although this thread has been open since September and we answer everything. The offer stands: questions here or on Subsquare, and we are happy to walk any delegate through the contracts, the memoranda and the mandate on a call. The milestone-based resubmission will be linked in this thread.

Paul Schmidt
Heitaria Swiss AG

5 days ago

another scam like mythos, mandala and other trash, fuck off

3 days ago

Polkassembly is now a read-only archive. Commenting is disabled.

Requested

USDT
190.00K USDT

Voting Period

Decision Period

11 / 28 days

Confirmation Period

0 / 4 days