Abstract: MoonDAO as an entity has rights and can take actions as an entity. It can own land, hire contractors and own IP. However, to exercise most of these rights, it needs to be legally recognized as a legal entity and have a bank account. This proposal would formally establish MoonDAO as a legal entity based in the Republic of Marshall Islands (RMI) as a Nonprofit DAO LLC. The RMI entity would also simplify MoonDAO’s tax obligations as outlined below.
For context on what a nonprofit is, the IRS defines nonprofits as “organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational or other specified purposes.” The IRS also provides favorable tax treatment for “social welfare organizations, civic leagues, social clubs, labor organizations and business leagues.”
Motivation: The reason why RMI is the best option for MoonDAO is because this legal entity is compatible with tracking our members and our votes on the blockchain. Considering that our token is a governance token and we do not issue any returns or dividends to members, the nonprofit entity is the most ideal structure (See this article for more in depth analysis of the benefits of RMI legal entity). MoonDAO needs to have a proper legal entity if we plan on taking on bigger projects that may require us to make big purchases, enter into formal contracts and acquire a physical headquarters/working space.
Specification: The main goal is to go through MIDAO to establish this entity. It will require @pmoncada to do KYC. The legal documents that establish us as a RMI Nonprofit DAO Llc will be similar to these and we will be able to adjust it as necessary:
https://docsend.com/view/caik9475xu5g9zqp
Once the final governing documents are finalized, MoonDAO will vote once more for final approval.
Benefits: Legal recognition for our community among the international community. This legal entity will further establish us as a professional organization that is here to stay. It will also provide legal protection to our members from legal liability issues. This will also allow our community to legally own assets as decided by the community.
Risks: There are minimal risks. The application could be denied (albeit unlikely), in which case we’d receive a full refund from MIDAO.
Objectives and Key Results:
Objective #1: Have our application to become a legal entity be approved. Key Results for Objective #1:
- Submit the application through MIDAO.org and provide the requisite paperwork - Have three members submit the requisite applications to go through KYC process. - Follow up with MIDAO on finalizing application.
Team
| Team Leads | Favian |
| Initial Team | Favian, Pablo |
| Sponsors | Pablo |
| Multi-sig Signers (if Budget is needed) | Favian |
| Foreign Language Representatives (optional) | Spanish - Favian, Pablo |
Team Leader(s) Bio: Favian#8760 is an attorney and key contributor for MoonDAO. He is focused on our long-term vision for MoonDAO. His legal background provides him a solid foundation in public speaking and networking in person and in writing, which will come in handy to establish a good reputation for MoonDAO amongst the space travel community. Favian has already established his own DAO (VanlifeDAO as a RMI LLC), so he is familiar with the process. He can also get a 5% discount from MIDAO.org (full disclosure: Favian has professional relationship with MIDAO.org and gets a 10% referral fee for recommending DAOs to MIDAO.org).
Role: Project leader
OKR within the project:
Objective #1: Oversee the application process and submit necessary information. Key Results for Objective #1:
-
Review, edit and submit the application for MoonDAO
-
Coordinate with MIDAO to process the application.
-
Oversee the process of having members go through KYC process
Team Steward Minimum Viable Payment: $2,000
Assuming that we do not have any members that own more than 10% of our token, we would just need one of ou[^2]r leaders to KYC, and Pablo has agreed to go through this process.
pmoncada#0261 Cofounder and fearless leader of MoonDAO.
Role: Application KYC process applicant
OKR within the project:
Objective #1: submit to KYC and background check.
Key Results for Objective #1:
- submit KYC and sign the required paperwork.
Team Stewards Minimum Viable Payment: $250
Budget Justifications
| Description | Amount |
|---|---|
| Registration fee paid up-front | $9,025 |
| Annual fees each January | $5,000 |
Total Budget (including guaranteed payments to team members): $11,275 worth of Dai
0 $MOONEY
Estimated Project Timeline (Table C)
| Date | Description |
|---|---|
| October 15, 2022 | Submit application |
| October 15, 2022 | Pablo submit KYC process through MIDAO.org |
| November 15, 2022 | Receive charter (obtain entity status) |