If we build it they will come..

Here are my thoughts on how I see a sub-dao that would have it`s activity IRL. At this stage we can let our imagination run wild but I think that we also responsible to pave the road if we want to see the future of corporations organised as a DAO.

Because there is no legislation to be able to operate a DAO as a registered company we have to find a work around it. In my case I will speak about a solution for DAO`s to have and run their own company and for my case study I will look at how to set up a SRL in Romania controlled by the DAO.

Based on the current legislation, we know that a SRL can have up 50 associates running that company. NFT`s are recognised and allowed to be hold and minted by either an individual or a company in Romania. With this information we can now create a business (SRL) controlled by the DAO.

Step 1:

Vote on chain for the members that will become associates in the company and will be part of the SRL board.

Step 2:

Register the SRL with the associates that have been proposed to be part of the board.

Step 3:

Vote on chain for rules , object of activity, budget and objectives of the SRL. For example , if it`s a investment business, that would buy land , what is the annual budget and how they should report back to the DAO for inventory and purchases.

Step 4:

After the budget is voted (eg. 100.000$), it is now time to transfer the funds and this can be done by the SRL minting an NFT , let`s say the certificate of incorporation, this NFT will then be bought with ETH by the DAO for the equivalent of 100.000$.

Step 5:

Returning profits from SRL to DAO can be made the same as on previous step but now the DAO will mint an NFT for the profit they want to collect from the SRL and this NFT will be then bought by the SRL.

Basically it`s almost like a listed company but without the hassle and strictness of a listed company. There is a board of associates that ensures that all decisions taken in the DAO will be enforced in the company. If any of the associates is underperforming he can be replaced. Like any other decisions taken by the DAO , sending unsuitable members on the board has it`s risk and at the end of the day the DAO stakeholders are responsible.

Going back to what we can accomplish by this and why do we need a company to run our affairs IRL, my first proposal would be to start by opening a crypto friendly coffee shop, this can be a place where we meet , a place where crypto friends meet and a huge boost for marketing and awareness. We could display our NFT`s on the walls and have printed versions of the TCI. Why not turning it into a francize and having a DAO coffee shop in each town, accept crypto payments and educate. I think that we can lead by example .

This is just a framework, open for debate , but I think this can take us to the next level or levels, why not someday our DAO to own shares in top 500 companies in the world and for the sports fans to name a stadium and even sponsor a team.

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  1. Nice point @Red21! yeah maybe we do need some sort of legal entity. The case is, however, that we have to really look into the benefits of having this legal entity based in Romania. There might be better options in countries which are more crypto friendly. However, if we do set up into a country other than Ro we have to take into account the tax revenue that is going to go to that country instead of Ro. As I said we need to put into balance all the pros and cons.

    1. I just gave an example with Romania as we have a lot of members there, but yes , if we want to trade stocks, Malta, Cyprus and Gibraltar might be an option. I still think this is a good option to act now and lead a way not to wait for regulated DAO`s as companies, then it might be to late to grab any opportunities and market share.