GP-025 Approval & funding to set up a Threshold Foundation

Proposals
1

Vote type:

Token holder DAO Snapshot with a 5-day vote period

DAO-elected representative sponsors:

John Packel, @LakeLaogai

Timeline:

  • 5 days for comment / discussion on this proposal
  • token holder DAO Snapshot with a 5-day vote period

Highlights:

  • The DAO supported TIP-42 to commission guidance on the best legal entity for Threshold
  • This proposal would authorize funding to engage law firms and service providers to create a Cayman Islands Foundation for Threshold

Detailed Summary

As outlined in TIP-042 Proposal: Protecting Contributors, which passed Snapshot unanimously here, Threshold DAO token holders approved $15,000 to engage a law firm to investigate establishing a legal entity. Expected benefits of an entity include:

  • Protecting Threshold contributors and token holders from personal liability
  • Reassuring existing and future contributors who are limiting their involvement or are concerned about risks
  • Providing Threshold DAO a proxy to represent the DAO and sign legal agreements

Please note that this proposal is not legal advice, and the sponsors are not attorneys but rather are active community members who believe Threshold needs a legal entity and support from legal counsel in setting up the most appropriate structure.

  • A Cayman Islands Foundation Company is a non-profit entity that will take direction from Threshold token holders via the existing DAO governance structure
  • Specifically, the Threshold treasury would continue to be housed in the Governor Bravo contract controlled by token holders, and the Council retaining its ability to veto harmful proposals
  • To expedite the process of creating a Cayman Foundation and reduce the cost, a company called Otonomos has offered incorporation services since 2015; their Cayman Foundation package is shown here
  • The legal counsel retained via TIP-042 will provide additional services as needed to the extent they are not covered by Otonomos

If passed, this proposal appropriates the necessary DAO funds and authorizes Threshold Treasury Guild Committee to engage with legal counsel and Otonomos to create a Threshold Foundation as outlined above.

  • $21,615 for Otonomos’ Cayman Foundation package
  • Up to $40,000 for legal counsel’s services, including local Cayman counsel
  • Discretion to alternatively select the DAO-controlled Foundation, Corporate Nominee Director, Nominee Supervisory Councillor recommended by legal counsel, rather than that provided by the Otonomos package

Here are some resources the community may want to read for context:

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