The DAO legal wrapper management solution is an "all-in-one" care cycle that accommodates all major operational needs of a DAO entity, from managing daily operations, IP and paperwork to grants, corporate accounting and compliance. With this service, DAObox aims to equip decentralised organisations with all essentials they require to operate their corporate structure and legal wrappers, including assigning in-fact executives and personnel to manage the legal entity and handle daily operations. Accordingly, we do not act as a nominee and assume actual managerial responsibilities in the legal entity.
DAObox can step in to manage the DAO legal wrapper at any time, both during the wrapper design and formation phase and after the DAO entity has been incorporated. In cases where we are engaged as an entity managers before the wrapper is formed, DAObox is able to act as the founder of the legal entity, undergoing all required checks and KYC screenings itself, and shielding the DAO members and core contributors from legal exposure, allowing them to remain anonymous (except for UBOs).
Same as any other legal entity, a DAO legal wrapper requires someone to assume managerial positions and take responsibilities for its administration and day-to-day operations. However, many decentralised organisations lack expertise with traditional legal entities and complexities of corporate administration and compliance, with members and contributors tending to avoid doxxing and legal exposure.
Engaging a professional manager offers additional benefits to the DAO, including added transparency in the entity operations, reducing risks of managerial errors and mistakes, and compliance oversight. As an independent manager, DAObox guarantees that the entity administration is conducted in an unbiased manner and always in the best interests of the DAO and its members. Lastly, this effectively substitutes other service providers and professionals that a DAO would typically require, resulting in substantial annual savings in payroll and expenses.
It is essential that the DAO retains ultimate and final control over its legal wrapper. Accordingly, DAObox is legally obligated to comply with resolutions adopted by DAO members and act in accordance with their instructions. As the appointed manager, we are also bound by fiduciary duties, requiring us to act in the best interests of the DAO entity, in strict compliance with its statutory documents and within the mandate granted by the DAO.
The DAO may impose additional restrictions on our managerial authority, such as limiting material or substantial transactions, the disposal of intellectual property, or asset transfers—none of which may proceed without prior authorization through a DAO member resolution. Typically, fund allocations will follow a budget adopted on a quarterly, semi-annual, or annual basis by the DAO.
As manager, DAObox provides regular reports to DAO members on the legal wrapper’s operations and prepares financial statements for public review. Ultimately, the DAO retains full authority and may remove or replace DAObox as manager at any time, with or without cause.
In order to complete the formation of a legal wrapper, and subsequently on an ongoing basis, at least one controlling person has to undergo KYC checks with the registered agent and government authorities. This requirement extends to the persons acting as directors or officers within the wrapper, and ultimate controlling persons (UBOs) – typically those with 25% or more of voting power.
Engaging DAObox as a manager implies that we assume a relevant position within the legal entity, such as managing member, director and/or supervisor, As such, DAObox is able to undergo and complete the KYC checks and required screenings itself, without doxxing DAO members or contributors or requiring them to assume additional legal exposure or managerial risks.
Our DAO legal wrapper management service offers flexible pricing and structured packages. A minimum one-year contract is required to ensure consistency and effective management.
Ecosystem Unit
$6250
/month
plus, a one-time incentive in project tokens equal to the annual fee
An ecosystem unit used for multiple operational purposes within the DAO ecosystem.
Managing day-to-day operations, infrastructure, paperwork, contributors, GitHub and social accounts
Administering entity wallets and fiat gateways
Corporate actions, reporting, continuations, communications
IP Unit
$3000
/month
plus, a one-time incentive in project tokens equal to the annual fee
IP holding unit used for holding and managing intellectual property and related rights.
Holding and managing IP, including code and GitHub, trademarks, domain names, developments, etc.
Collecting, licensing and enforcing IP rights
Corporate actions, reporting, continuations, communications
Treasury Unit
$3500
/month
plus, a one-time incentive in project tokens equal to the annual fee
Treasury unit used for holding and managing DAO treasury or specific treasury assets.
Holding and managing the treasury assets of the DAO, including tokens and other crypto funds
Acting on the entity multi-sig and other wallets
Corporate actions, reporting, continuations, communications
Need a tailored approach? Contact us for a custom offer aligned with your DAO’s goals, desired engagement level and operational volume.
Our engagement process is designed to resonate with the decentralized essence of DAOs and Web3 organizations. The process initiates with an initial discussion, where DAObox initiates direct communication with the DAO and its core contributors to understand the distinct needs and structuring requirements, following which DAObox issues an offer to the DAO via a forum post, discord message or otherwise, outlining the suggested path forward and engagement terms.
Upon receipt of our proposal, the DAO can evaluate our proposal, discuss its advantages and decide whether to proceed to a community vote. With a favorable outcome, we transition into the engagement stage. Once DAObox assumes the helm of the legal wrapper's management, we proceed to operate the wrapper and perform the tasks and activities according to the directions provided by the DAO. Through regular reporting, DAObox remains accountable to the DAO, providing detailed insights into the operational undertakings and fiscal administration of the legal wrapper.
To get a better understanding of the DAO wrapper management service, check out our short explainer video.