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.
- 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.