Tokemak DAO TRU-1 Community Call

In this community call, Tokemak's general counsel Mike Mueller joins us to discuss TRU-1, our first governance vote that proposes forming the Tokemak Foundation.

Tokemak DAO TRU-1 Community Call

Last week the team announced the implementation of Tokemak's Snapshot governance platform, along with the first governance proposal TRU-1, which outlines forming a Tokemak Foundation.

In tonight's community call, Tokemak general council Mike Mueller joined us to chat about DAOs and answer questions from the community surrounding the implications of forming this foundation.

Key Takeaways

  • Mike has been a practicing attorney for 10 years, specializing in corporate securities and governance. He is the in-house legal counsel for Tokemak.
  • Mike defines a DAO as an on-chain community looking to do a coordinated activity on a blockchain. This can vary from protocol development to investment and much more. There isn't a one-size-fits-all definition or structure.
  • A foundation allows a DAO to have a structure similar to a nonprofit, where the directors are mandated to work in the best interests of the software and token holders.
  • Foundations are typically formed in Switzerland or Cayman Islands due to the well defined legal structure.
  • A foundation allows the DAO to have a traditional legal entity that can interface with other real-world entities.
  • The directors in a foundation are similar to "board observers" in a traditional corporate structure. They are non-voting representatives that act in the best interest of the DAO.
  • Adding additional directors moves power towards the foundation, while retaining power and decision-making abilities in the DAO. It's a balance.
  • A discussion forum (probably either Discourse or Commonwealth) will be coming soon.
  • With the introduction of a forum and more proposals, the community will be able to begin shaping the structure of the DAO.
  • Delineation of governance responsibilities will be up for discussion. However, it will be important for the team to be able to act quickly on certain protocol-level decisions. Initial governance proposals may fall on the structural and treasury side of the decision-making spectrum.
  • The paperwork for processing TRU-1 is ready, so the formation of the foundation can occur quickly after the proposal is passed.
  • After TRU-1 is processed, the director and an additional signer will be added to the multisig.
  • Additional structural decisions include whether to introduce delegation, and procedures for proposals & voting.
  • Regular "State of the Reactor" and Captain Community Calls will be scheduled where the community will be able to discuss these changes and ask questions on a weekly/biweekly basis.
  • Dan will be putting together a community Notion page to house questions and topics of discussion for these community calls.
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