To the San community

Dear San community, 🐕❤️

This is a long letter. Please read it when you have a quiet moment, maybe with your dog beside you.

Over the last weeks many of you have asked about the migration, about where the tokens went and about the money. You deserve real answers. So here is everything we know, what we do not know yet, and what happens now.

First, where I stand

I did not create $SAN. I also did not manage the migration supply or the OTC sales.

Those were handled by the former CTO lead. They sent out the migration tokens and collected the payments from OTC buyers. We worked side by side for this project, but that money was never in my hands.

That person has now left, and I have taken full responsibility for $SAN. Our team found out what really happened on 2 November. They have left all of our chats, they hold no keys to the project's wallets, and we have changed the password of our main account.

How the 240M was given out

I want to be very clear about this, because it matters.

During the migration in May, about 240M $SAN, 24% of the supply, was given out. This was never planned together, and it was never agreed. The team agreed on two allocations only: Ansem's, and 2M $SAN to migrate.fun for the airdrop.

Everything else, who received supply and how much, was decided by the former lead alone. Most of our team did not know until now.

This is what we have been able to piece together:

• Ansem, agreed23M · 2.3%
• migrate.fun for the airdrop, agreed (5PTfJS)2M · 0.2%
• Team chat50M · 5%
• KOLs14M · 1.4%
• Moderators *20M · 2%
• Community members who missed the migration, the former lead's decision *10M · 1%
• OTC70M · 7%
• Donations50M · 5%

* These two are what the former lead told us. We have not been able to confirm them on the chain yet.

These add up to 239M. On the chain, 240.4M left the migration wallet, so about 1.4M is not accounted for yet. We are still tracing it, and when we know, it goes here.

Most of this supply has since been sold.

What we know today

Ansem still holds about 22.5M.

Of the 50M allocated to the team chat, about 40M has been sold by two former team members, while the remaining 10M is still held by a current team member.

The 14M that went to KOLs has been sold.

For the moderators, we do not have the full picture yet.

If you missed the migration, I am sorry, but there is nothing we can do about it now. Giving 1% of the supply to some of the people who missed it was the former lead's decision. The team did not agree to it.

As for OTC, not all of those tokens were sold. Some buyers are still holding, after everything that happened. Thank you for that. I cannot tell you exactly how much is still held, and I will not give you a guess and call it a fact.

The money

The OTC sales were meant to fund an ETH pool the same size as our PumpSwap pool on Solana. That pool never happened. The OTC sales raised about $45,000 at different prices. That is the former lead's own number. On the chain, we can trace at least 382 SOL of OTC payments into their wallets.

Those payments went into wallets the former lead controlled. Almost none of it reached the team. One team member received about $2,000 from the former lead, to pay back part of what they had spent on $SAN themselves: the DEX listing and boosts, and the San anime. The rest will not be returned. We continue without it.

The former lead says part of it paid for a CoinMarketCap listing and for marketing. The listing we can show: on 11 May, a holder sent 5,150 USDC for it to one of the former lead's OTC wallets, and received $SAN in return. For the marketing, we have no receipts, so we cannot confirm it.

When we read the chain, we found more. Between June and November, about 1,766 SOL and 2,617 USDC went from the former lead's wallet to an exchange. At the prices of those days, that is about $135,000. The last transfer was on 3 November, the day after we found out.

Not all of that $135,000 was OTC money, and I want to be clear about the difference. It came from OTC payments, from sales of the leftover migration supply, from a share of the creator fees, and from other wallets, including SOL withdrawn from an exchange. At least $84,000 of it is linked to $SAN.

The donation wallet

The donation wallet has always been under my control. The former lead never had access to it.

Once, part of the OTC money did pass through it, and I want you to see exactly how.

In late May, about $11,000 from the OTC sales, 136.58 SOL, was sent to the donation wallet for that ETH pool. The pool never happened. On 7 June I sent 135 SOL back to the OTC wallet it came from, because the former lead asked me to send it back.

Between 7 and 10 June it went on to the former lead's wallet. On 8 June the first 780 SOL went from that wallet to an exchange.

I trusted that request at the time. Today you can follow every step yourself, with a link for each one on the evidence page.

The creator fees

This is how the creator fees move. They arrive first in the donation wallet. From there they are passed on to the creator wallet, which pays them out. Every payment shows on the tracker.

Under our agreement, the former lead received 50% of the creator fees from February to July, and 30% after that. The rest went to my walk with San and to buybacks of $SAN.

On the chain, the creator wallet paid out 74.1 SOL in that time:

• 39.6 SOL to the former lead's wallets
• 32.5 SOL to me
• 2.0 SOL to 5Qh65b, to sponsor a competition in San Run, the pixel game one of our team made for San. You can play it in the browser or on iPhone and Android: you run with me and San, rescue animals on the way, dive and fish for treasures, raise your own San, and climb the ranking in a new challenge every day

My own wallets are Bz7QAG and AtLmjA, so you can see what I hold and what I do with it. Bz7QAG is my personal wallet. AtLmjA is my account on Binance, which I use to change SOL into yen. The donation wallet and the creator wallet are mine too.

Today I hold no $SAN in my personal wallet. On 28 May I moved all of it, 2.66M, to the donation wallet, which now holds 4.18M. I sold once, 200,000 $SAN on 21 February. From February to May I bought about 2.9M $SAN with 44.6 SOL, more than my share of the creator fees. In March I sent 2.93M, about 0.3% of the supply, in eight transfers. One of them, 33,333 $SAN on 4 March, was a prize in a competition in San Run, our pixel game. Six went to new wallets, and one went to a holder who had bought $SAN themselves in February. None of it has been sold: all 2.93M still sits in those eight wallets today, and every transfer is in my wallet's history.

I am telling you this so there is no room for guessing.

The creator fees were an agreement. The OTC money and the migration supply are a separate matter, and that is where the real damage is.

Where the 240M is today

Our on-chain report of 4 November traced the full 240M:

• Sold into liquidity pools80.1M
• Locked through Streamflow56M
• Held by Ansem22.5M
• Other wallets we could identifyabout 81M
• Small transfers not followed furtherabout 0.5M

This shows where the tokens went. It cannot tell you who is behind every wallet, or why.

What I feel

I know how this feels. Many of you came because of San, because of this little dog walking across Japan and the good that could grow around her. You trusted that the people around her would take care of what you gave.

Some of that trust was broken. I cannot undo what another person did. But I am the one here now, and rebuilding your trust is my job. It starts with telling you the truth, even when the truth is uncomfortable.

What changes now

The former lead has no part in the project anymore, not in its work and not in its money.

Next, we are setting up a multisig wallet for the project's funds, so that every transaction needs several people to sign. We want to do this right, so it takes some time. When it is ready, its address goes here, and from then on no single person can move the project's money alone again, and that includes me.

From now on, the creator fees are what funds $SAN:

• 50% for my walk with San and the work around it
• 50% for buybacks of $SAN

In October, part of the fees went into liquidity: 48.7 SOL to liquidity, 18 SOL to buybacks and 10.1 SOL to me. Liquidity is still part of the plan, but for now buybacks come first. We may come back to liquidity later.

Every fee is tracked publicly. A report comes out on the 3rd of every month, and the first one is on 3 December.

Our promise to charity stays

56M $SAN is locked through Streamflow:

• 26M for charity, in ten locks of 2.6M: one opens every 2 March from 2027 to 2034, and two open on 2 March 2035
• 10M opening on 2 March 2027
• 20M held long term, with no end date

Anyone can check these locks. The links are below.

Every week, we keep donating 50,000 $SAN, to a different charity each week.

Thank you

I cannot do this alone. To the people in our team who stayed when leaving would have been easier: thank you. You spent nights on this, and you never asked for anything back.

And to everyone who still holds, still asks and still believes: thank you.

A letter cannot undo what happened. Only what we do next can. Ask us anything, check everything and tell us when we are wrong. We will answer.

What was lost was money. What matters is still here: San, all of you, and the reason we started. San and I keep walking, and from here on every step is in the open. Together, let us show what crypto can be when it is kind, and a force for good.