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Create a DAO Legal Wrapper in the Form of a DLT Foundation
Formation Procedure and Requirements
DAO-Specific Framework: Designed specifically for DAOs and Web3/decentralized communities, addressing their unique challenges and operational requirements.
Regulatory Clarity: Clear guidelines for issuing and holding tokens, and for token-based governance.
Decentralized Governance: The governance of this foundation can be entirely smart-contract based, with no bylaws, allowing entity decisions to be governed by token-based processes.
Legal Protection: As a registered legal entity, the DLT Foundation provides limited liability protection for DAO members, mitigating risks associated with unregistered DAOs. Foundation assets are further protected from foreign claims.
No Presence Required: No physical presence requirement for the DLT Foundation or any of its members or contributors.
Advantages of a DLT DAO Foundation
The new framework fully recognizes decentralized governance, allowing DAO members and participants to have direct authority and control without physical presence requirements for either the DAO or its members.
The laws of the ADGM, largely based on English common law, allow for the direct application of English law within the ADGM regulatory framework. This approach ensures regulatory clarity and protection for DAO members and key stakeholders.