Given the recent regulatory scrutiny regarding DAO contributors that has begun to establish a precedent whereby DAO contributors may in some cases be held jointly and severally liable for the actions of the DAO in the United States, I’m concerned that our contributors may also be deterred from participating in the DAO formally if steps are not taken to mitigate their liability.
The way our guild’s function is akin to “service providers to a DAO”, but without the liability protections afforded to US-based entities and without the ability to interface with meat-space organizations (for insurance, useful web2 products, etc.).
Today, our guilds are elected. The unfortunate reality of the election methodology is that it limits the DAO to a self-selection-bias, valuing popularity over productivity. I propose that we switch to a capitalist approach for functional roles. In order to accomplish this transition, factions who work well together would need to (a) establish entities or (b) remain entity-less and (c) apply for either special purpose roles (temporary grants) or general purpose (term-based grants). These contracts would require the submission of budget proposals, responsibilities, goals/priorities, and privileges.
For these entities to operate, the DAO would also need to have a proxy entity to represent it and to sign agreements on behalf of the DAO. Historically, there are several models that have been used for this purpose. Offshore non-for-profit foundations (i.e. Cayman, BVI, etc.) tend to be the norm.
However, since I am not a lawyer, I have spent the past month speaking with firms to determine whether they would be able to consult on a thorough review of the model I am proposing. I propose that we allocate 10,000 DAI as a retainer to conduct a review of the optimal one-to-multiple entity model for Threshold DAO. Specifically, a top level governance entity in contract with several service provider organizations.
For this consultation, I propose that we engage Campbell Teague (https://campbellteague.com/). I have known and worked with this team for over a year and I consider them to be extremely competent with matters relating and circuitous to DAOs. The team is part of LexDAO (https://www.lexdao.coop/) and Jordan Teague, a cofounder and partner of the group, wrote the smart contracts for KaliDAO (GitHub - lexDAO/Kali: Optimized DAC Protocol).
Furthermore, while working with this team, they’ve proven to be fair and prudent with their pricing.
I invited select elected contributors to the community to speak with and vet this firm as well. I will let these contributors share if they support this proposal independently.
While I will not verify this claim publicly, I believe it is worth stating explicitly that I do not have financial ties to Campbell & Teague, Lexdao or Kalidao, beyond being a client of the foremost.
This post is motivated by several active contributors who have raised concerns about their liability to myself personally.