A proposal to incorporate the Idle DAO in the Marshall Islands using MIDAO.
- Legal structure for the Idle DAO post - Sept 2021
- Idle DAO Legal Structure - Summary post - Jan 2022
- Idle DAO Legal Structure - Governance Proposal post - Jan 2022
- MiDAO website
The research to incorporate the Idle DAO has been an argument of discussion
Finally, we came up with a solution that should help our DAO have a formal legal wrapper without adding too many legal burdens. The selected solution aims to incorporate the DAO in the Marshall Islands with a not-for-profit structure supported by the MIDAO.
Incorporating Idle DAO with MiDAO will benefit the community under multiple aspects:
Incorporating the DAO is the best way to shield contributors and token holders from legal risks. This ensures every DAO member can keep his assets and future earnings even if the DAO is sued or under a legal crisis.
Incorporating the DAO will give our organization the possibility to act as an individual entity, enter into traditional agreements and own assets.
If our DAO needs to open a bank account to manage fiat currencies, it’s impossible unless we establish corporate personhood. And, if Leagues sign contracts and interact with third-party companies outside of the blockchain, the contracts don’t hold up under the law without corporate personhood.
Idle DAO does not have a tax entity making it more difficult to manage taxes for the DAO and its contributors. A MIDAO DAO LLC will protect IDLE token holders with respect to any DAO-related tax burden.
Additional benefits include
- No trustees, directors, officers, or managers with extra liability or responsibility
- All documents and records can be kept on the blockchain
- Most members can remain anonymous
- Governance by smart contract is allowed by law
The cost associated with this proposal is expected to be a one-time payment of $20,000 used to pay MIDAO, legal advisors and the costs associated with the initial entity filing. This amount will cover budgeted expenses until January 2025.
We are going to leave this thread open for comments regarding this proposal, and soon, if there are no objections, we will open the temperature check.