# 6/Governance

**Project Governance**

The team spearheading the tokens is the same team which leads the company. In other words, the same team answers to both groups of stakeholders.&#x20;

The common platforms where token holders can get the latest updates on the Frac Token would be on Frac's official social media accounts: <https://linktr.ee/frac.io>

**Token Treasury Governance**

1. Multi-signatory arrangement

* Currently, all supply of $FRAC (including the Token Treasury) sit in the Parcel application ([https://v3.parcel.money/](https://v3.parcel.money/home))
* The Parcel application sits in Gnosis Safe which is a smart-contract driven wallet, that enables multi-signatory unlocking of tokens. There will be a minimum of 3 signatures needed amongst the Directors of Frac's group of companies, would be needed, in order to unlock the $FRAC that is part of the Token Treasury.

2. Transparent transactions

* Since all token transfers take place on-chain from wallet to wallet, investors can check the respective block explorers at any moment of time to verify up-to-date token holdings in any wallet.
* Origin wallet address URL Link: <https://bscscan.com/address/0xe10F99F7A1b0cC1f94a99F48F2F921E15474D72A>)

3. Treasury Policy

* As mentioned, the $FRAC in the treasury is only reserved for use for the following functions, as mentioned on [4-tokenomics](https://frac.gitbook.io/whitepaper/4-tokenomics "mention")\
  \
  \- Asset Owners' Incentive\
  \- Staking Rewards\
  \- Strategic Partnerships\
  \- Foundation\
  \
  With clear use of the tokens in place, these policies would serve to safeguard against any wrongful or unjustified usage of $FRAC.\
  \
  Frac's Board of Directors which acts as the Governance Committee, will be overseeing the execution/implementation of the Treasury Policy.&#x20;

4. Use of Proceeds&#x20;

* Frac Sdn. Bhd. will utilize the funds raised as per the **Table of Use of Proceeds under** [5-token-sale](https://frac.gitbook.io/whitepaper/5-token-sale "mention")and will also not make any changes to the utilisation of proceeds post the issuance of the digital tokens or any changes that affect the token holder’s rights, unless prior approval of the token holders representing 75% of the total amount of tokens held by all token holders present and voting has been obtained.

6. Material Changes&#x20;

* Where a material change occurs affecting the TCF (Token CrowdFunding), the TCF project, or the issuer, Frac Sdn. Bhd. will immediately upon knowing or becomes aware of the event, inform the pitchIN Team of such change for purposes of announcement on the pitchIN TCF platform.

7. Conflict of Interest

* If there are transactions or activities which may amount to a conflict  of interest with $FRAC investors, these transactions or activities, will be made known from Frac Sdn. Bhd., to the pitchIN Team for the purposes of announcing on the pitchIN TCF platform. &#x20;
* In addition to the above requirement, post issuance of $FRAC, Frac Sdn. Bhd. will notify the pitchIN Team of any sale, transfer or assignment involving five (5) per centum or more shareholding in Frac Sdn. Bhd, for the purposes of announcing on the pitchIN TCF platform.&#x20;
