Conflict Resolution and Ethics Regulation

Entered into force on February 21, 2026.

On-chain voting result: association.dao.eth/transaction-hash

1. General Provisions and Objective

1.1. Subject: This Conflict Resolution and Ethics Regulation (hereinafter the "Regulation") establishes ethical principles and multi-stage procedures for resolving internal and external disputes of New Epoch Association (hereinafter the "Association") and its Authorized Representatives (hereinafter "Representatives").

1.2. Objective: To ensure fair, transparent, and efficient resolution of internal and external disputes, minimizing the need for resource-intensive On-Chain Voting or external judicial proceedings, as well as to maintain a high level of trust and reputation of the Association.

1.3. Hierarchy: This Regulation supplements but does not override the mandatory dispute resolution provisions set forth in the Mandate Agreement and the Indemnity Agreement, as well as the provisions on financial protection contained in the Asset Reservation and Risk Management Policy. In case of direct conflict, those provisions shall prevail.

1.4. Applicable Law: This Regulation is governed by the substantive law of Switzerland. Lex Cryptographica (protocol code) is applied subsidiarily.

2. Ethical Principles and Conflict of Interest

2.1. Standard of Conduct: All Representatives and active members of the Association are obliged to act in good faith, honestly, and in the best interests of the Association’s Mission.

2.2. Conflict of Interest: A Representative must promptly disclose any actual or potential conflict of interest related to their authority, including:

2.2.1. Direct or indirect financial interest in a Project applying for a Grant.

2.2.2. Personal or business relationships with the head of the Grant-recipient Team.

2.3. Recusal: In case of a conflict of interest, the Representative must recuse (self-disqualify) from participation in discussion, evaluation, and voting on the related matter. Failure to comply is grounds for initiating the dispute resolution procedure.

3. Procedure for Resolution of Internal Disputes

3.1. Internal disputes (e.g., between Representatives or between a Representative and the Association community regarding Mandate performance) are resolved according to the following multi-stage scheme:

3.1.1. Stage 1: Informal Mediation: The interested party submits a written notice of dispute to the appointed Authorized Representative, who must appoint a neutral mediator from active community members to reach a voluntary agreement within 14 days.

3.1.2. Stage 2: Internal Arbitration: If mediation (Stage 1) fails, the dispute is submitted to the Authorized Representative for internal disputes or another arbitrator appointed by the Association (hereinafter the "Arbitrator").

3.1.2.1. Proceedings at this stage must ensure minimal procedural guarantees, including the right of each party to timely present written arguments and evidence supporting their position.

3.1.2.2. The Arbitrator must issue a written, reasoned decision (hereinafter the "Arbitral Award") based solely on submitted arguments and applicable Association documents (including the Governance Resolution).

3.1.2.3. The Arbitral Award is binding but may be challenged (submitted for ratification) at Stage 3 within 7 (seven) days from issuance.

3.1.3. Stage 3: On-Chain Ratification (Veto): The Arbitral Award issued at Stage 2 may be challenged by either party through initiating an On-Chain Vote requiring Voting with Qualified Confirmation.

3.1.3.1. This vote does not review the merits of the case and is not a rehearing.

3.1.3.2. The On-Chain Vote serves as the supreme mechanism of ratification (approval) or veto (rejection) of the Arbitral Award issued at Stage 2.

3.1.3.3. The decision made by the On-Chain Vote (ratification or veto) is final and binding on all Association members and dispute parties.

3.2. Finality and Waiver of Appeal:

3.2.1. All Authorized Representatives and Association members (including users who accepted the Terms of Use) explicitly agree and acknowledge that the multi-stage procedure described in clause 3.1 is the sole and exclusive remedy for resolving internal disputes.

3.2.2. Parties unconditionally agree that a decision becoming final (at Stage 2 if unchallenged, or at Stage 3) is final, binding, and not subject to appeal or review in state courts or any other external arbitration body, except as expressly provided by mandatory provisions of applicable Swiss law.

4. Procedure for Resolution of External Disputes

4.1. General Rule: Any disputes arising between the Association and external counterparties (third parties) who are not members or Authorized Representatives of the Association shall be resolved exclusively by international arbitration.

4.2. Application: The external dispute resolution procedure is governed by the Arbitration Rules incorporated by reference into all external contracts concluded by the Association.

4.3. Exception to Internal Mechanism: The Internal Arbitration procedure and On-Chain Voting do not apply to dispute resolution with external counterparties unless otherwise expressly provided by the Governance Resolution.

5. Effective Date and Amendments

5.1. Effective Date: This Regulation enters into force simultaneously with the date and time of entry into force of the Governance Resolution.

5.2. Amendments: Any amendments to this Regulation may only be made through Voting with Qualified Confirmation performed in accordance with provisions set forth in the Governance Resolution.

5.3. Notice: Continued use of the Association’s website, software, and Tokens after publication of amendments constitutes user acceptance of the updated Regulation.