All allocations of NEWT tokens—whether designated for the Magic Newton Foundation, community initiatives, or Internal recipients—are traceable and independently verifiable onchain. Wallets associated with each allocation category will be clearly labeled and publicly disclosed.

In addition, wallets associated with allocations to Early Backers, Core Contributors, and Magic Labs will be appropriately tagged to reflect their respective roles. This approach is intended to facilitate transparency, promote accountability, and enable third-party verification of all token-related activity.

The Foundation is establishing three primary practices in its framework to establish verifiable trust in its operations:

  1. Magic Newton Foundation’s $NEWT will be held in multiple publicly-tagged wallets onchain, each governed by a written, predefined policy specifying how the funds can be used. For the full list of relevant wallet addresses, see Exhibit A: On-Chain Addresses.
  2. If any of the Foundation’s unlocked NEWT tokens are sold, the proceeds will be held in onchain tagged wallets as stablecoins and/or other digital assets until they are deployed, at which point they may move offchain for fiat transaction rails. Note that the Foundation is strictly prohibited from selling any locked NEWT.
  3. If any amount of proceeds generated from NEWT dispositions are moved away from those tagged wallets and held offchain (e.g., for treasury diversification purposes), then such amounts held offchain will be disclosed by the Foundation as part of its quarterly transparency reports. In addition, the Foundation commits to independent third-party verification of such transfers and amounts held offchain.