DAObox provides a solution by founding the legal entity and expertly managing its operations, all for as long as the DAO requires our services. DAObox effectively substitutes other service providers and professionals that a DAO would typically require, resulting in substantial annual savings in payroll and expenses. Furthermore, our service saves significant time, potentially spanning months or even quarters, which would have been spent in the search and retention of qualified managers or C-level executives.
This service, not to be confused with nominee services, is a real administrative and management service for the DAO legal wrapper. Our responsibilities may include:
Representation: DAObox represents the legal wrapper and acts on its behalf, dealing with the legal formalities and ensuring seamless operations.
Legal Wrapper Support: We facilitate the legal structure and keep it in good standing, making sure that all applicable corporate and other requirements are met.
Operational Management: We handle the daily operations of the legal wrapper and act as both de facto and de jure directors and managers of the structure – with DAObox, the wrapper gets a team of dedicated managers starting from day one.
Asset Management and Protection: DAObox manages the assets and intellectual property of the legal wrapper, including crucial IP, trademarks and domain names. We go a step further by offering legal protection for these assets, both against any possible infringement or hostile activities.
Paperwork: We handle all essential paperwork associated with the legal wrapper, including the execution of agreements and legal instruments.
Contributor Management: Our responsibilities include engaging and managing the contributors, service providers and auditors.
Service and Infrastructure Management: DAObox manages the major services, subscriptions, and technical infrastructure utilised in connection with the project.
Fiat Accounts: DAObox facilitates and manages fiat accounts for the legal wrapper, which includes making fiat payments.
Grant Programs Management: DAO grant programs can be realised via the legal wrapper, ensuring they are legally structured and properly administered.
Business Correspondence: We handle all business correspondence and act as the main point of contact with respect to the DAO legal wrapper.
Guidance on Wrapper-Related Matters: We guide the DAO on all matters related to the legal wrapper, helping its members navigate any potential obstacles and better understand how things work.
Reporting: We take responsibility for comprehensive reporting, ensuring transparency and accountability.
The issue of control is an important one as in the future, the legal wrapper may be holding and managing certain valuable assets belonging to the DAO (if DAO ever decides to transfer those to the legal vehicle). That’s why, although DAObox will be taking the managerial positions at the wrapper, the DAO will have the ultimate control over the legal wrapper and our actions will be limited by the mandate given by the DAO.
The wrapper constitutional documents designed by DAObox subordinate the wrapper’s governing bodies and management to the DAO and resolutions adopted by on-chain voting, whether via Snapshot or otherwise, to the maximum extent possible. Any such resolutions will be binding upon the legal entity and its management.
Furthermore, the constitutional documents can limit the authority of managers on the disposition of material assets and intellectual property held by the legal vehicle, entering into transactions the value of which exceeds a certain threshold set by the DAO, and performing certain other material actions – any such acts will require the consent of the DAO. Normally, the spending of funds will be in accordance with the quarterly (semi-annual or annual plans or budget) adopted by the DAO.
As the legal wrapper will be subordinated to the DAO, it can pass a resolution on replacing us as managers of the legal entity at any time, as well as on the change of the composition of the managerial bodies, and such resolution shall be binding.
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, sometimes, other controllers, such as major token holders (typically 25% or more of the voting power).
Due diligence and KYC requirements pose a challenge for many DAOs, as they often prefer to maintain anonymity and protect the identities of their core contributors and project founders. For some of the DAOs, contributors' legal exposure is a major concern or even a stopper.
During its management engagement, DAObox assumes the position of director (or a similar role) within the legal wrapper. In this capacity, DAObox undergoes requisite KYC checks, which, in certain scenarios, can enable DAO contributors and project founders to maintain their anonymity, avoiding direct exposure and associated risks. This is particularly effective if DAObox is engaged prior to the formation of the legal wrapper and acts as its founder.
We offer two standard packages and pricing options, but can design a tailored offer for your particular DAO and its needs upon request. Those DAOs which subscribe for our management and administration service, DAObox offers a 30% discount for any DAO legal wrapper formation package.
Popular
Ecosystem Unit / General Wrapper
$6250
/month*
Wrapper used for any purposes
determined by the DAO
2 year contract
Complete management solution
covering contributors, staff,
contracts, web- and technical
infrastructure, socials, GitHub,
grants, fiat payments and more
Corporate accounting
Reporting to DAO
New
IP Unit / IP Holding
$3000
/month*
Wrapper used for holding and
managing IP and related rights
2 year contract
Management solution covering
IP (code, trademarks, domain
names, developments, etc.)
collection and management,
state filings, enforcement of IPR
Corporate accounting
Reporting to DAO
Custom
Any Unit / Your Purposes
$TBD
/month*
Wrapper used for specific
purposes determined by the DAO
and DAObox
2 year contract
Scope of engagement to cover
areas of responsibility as may
be agreed upon between the DAO
and DAObox
Corporate accounting
Reporting to DAO
Check out our short explainer video about DAObox's DAO Legal Wrapper Management Offering.
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.
Ultimate Guide to DAO Legal Wrappers
View Guide
Our Documentation and Additional Information
View Docs
