The Loki Foundation is a registered organisation in Australia. The Australian non-profit constitution gives Loki the same corporate governance structure as many other non-profit organisations, where the company has no shareholders or beneficiaries, the governing board members each have seats with term limits, and conduct actions by voting on resolutions put forward by their fellow members. The Loki Foundation is structured to achieve registered charity status in Australia. The organisation is constitutionally bound to spend any income on the furthering of the project and aligned initiatives. The Loki Foundation is accountable both to the community and its auditors. If it ultimately fails to serve Loki and its surrounding projects, hard protections exist, and if a hard fork with enough network consensus arise, there exists an opportunity to remove or replace the Loki Foundation as the recipient of this block reward. 

Loki Foundation

The Foundation is subject to both its own governing constitution and the laws of Australia, which could prove to be a limiting factor in the range of decisions the Foundation can make. The Loki Funding System allows for a portion of the block reward to be acted on purely by a vote from the Service Nodes. Service Nodes represent entities from all over the world and are not beholden to input from the Loki Project Team or Foundation, allowing them to greater autonomy in the decisions they can make.

Loki Funding

University of Connecticut

The risk of informally defined governance has been studied extensively throughout the history of blockchain technology. Bitcoin and Ethereum experienced hard forks that split the focus and efforts of their respective communities. Although hard forks can be used as a governance strategy, they should always be considered as a last resort. The Loki governance system is created to resolve potential issues by providing a structured environment for discourse and representation, as well as creating and generating funds for new projects. 

Governance in Crypto

https://loki.network/wp-content/uploads/2018/10/LokiWhitepaperV3_1.pdf

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