Cowrie LLC and Treasury League
Governance Proposal – Implement an UNA entity structure for Idle DAO
Since its inception, the Idle Dao has unlocked the power of decentralized finance for its members and users, by providing an algorithmically optimized digital asset allocation across leading DeFi protocols. To best protect the members of the DAO and to attain legal existence to expand its ability to conduct real world interactions – the Idle Treasury League has proposed that the Idle DAO implement an entity structure, specifically that of an Unincorporated Nonprofit Association in the United States.
The costs associated with this proposal is one payment of $20,000 in Idle token and $40,000 in USD payable immediate, an estimated payment of $20,000 in Idle token and $40,000 in USD payable upon completion of the entity structuring project, an annual distribution of up to $20,000 and quarterly distribution payable in the amount necessary to meet Idle DAO’s estimated tax payments.
The two payments of $20,000 in Idle token and $40,000 in USD will be distributed from the Idle Treasury for the purposes of paying attorneys, advisors and the costs associated with the initial entity filing.
The annual distribution of up to $20,000 is from the Idle Treasury for the purposes of paying attorneys, advisors, the costs associated with annual filings, preparing quarterly tax filing and filing an annual return. Should any portion of the distribution remain unused, it will remain in the entity’s bank account.
Estimated taxes will be calculated each quarter and distributed from the Idle Treasury and remitted to the relevant taxing authority (presumably the IRS but depending on evolutions of law and DAO activity, could ultimately include state taxing authorities). Should the payment of estimated taxes result in a refund upon the filing of the annual return, it shall be deposited in the entity’s bank account for use of future tax payments.
Prior to implementing the UNA structure, the Treasury League will introduce a governance proposal containing the articles of organization and clarifications of state obligations to the membership.