AavegotchiDAO was summoned as a 100% on-chain DAO in September 2020 via the deployment of the GHST bonding curve. Since then, the DAO has matured into one of the most active DAO’s in the world with over forty successful AGIPs passed and extremely healthy metrics on Snapshot. Over this period we also graduated across our DAO’s roadmap, going from DAO 1.0 into the more experimental period known as Cocoon, our precursor to Metamorphosis (AKA DAO 2.0). Achieving Metamorphosis requires the DAO to further decentralize and accept more responsibilities currently guarded by the original summoners and Pixelcraft Studios.
Today we propose the next major step forward by suggesting it is time for AavegotchiDAO to add an off-chain presence to our decentralized autonomous organization. The following proposal is rooted in months of research and interfacing with a variety of legal advisors. We also take the practices of leading peers such as ENS and Sushi into consideration, opting for Foundation formation in the Cayman Islands coupled with on-chain governance being secured as primary via the Foundation’s Constitution.
Read on to see how we may move AavegotchiDAO forward in a way that drives progress for our vision of an open-source, on-chain gaming protocol!
My proposal is for us to form the AavegotchiDAO Foundation in the Cayman Islands as soon as possible by following these steps:
- Gather all interested in serving as one of nine Directors on the Foundation. These nine Directors simultaneously are seated on the Foundation’s newly formed multisig wallet.
*Interested in being a Director? Signal your interest by saying so in the dedicated Discord thread called #DirectorElection. This thread goes live now in Aavegotchi Discord
Host election via Snapshot where the nine most voted for shall serve as Directors of the Foundation until further notice (The DAO should likely flesh out details for term length etc with a separate AGIP at a later date).
Submit the nine fully KYC’d Directors details to our legal lead from LEX DAO so that they can immediately begin Foundation formation. This will be completed in days, not weeks. It shall include one local officer/secretary as well as a corporate secretary.
Upon formation of the Foundation, the Directors shall create the new Foundation’s primary multisig.
Pixelcraft Studios shall transfer DAO Treasury multisig funds to the Foundation multisig, including DAI, GHST, and Alchemica on both Ethereum and Polygon networks.
Pixelcraft Studios shall deliver a standard work-for-hire contract to the Foundation that reflects the same terms already being executed via the GHST bonding curve (ie 150,000 DAI per month to Pixelcraft Studios for lead development of Aavegotchi protocol)
The Foundation’s local secretary shall sign this contract citing the will of AavegotchiDAO as evidenced by passage of this very Sigprop and Coreprop; no separate AGIP required. Future contracts and transfers of funds shall require their own on-chain signaling of support, defined as the passage of a CoreProp AGIP at the time of this writing. Any future adjustments to such working processesses, responsibilities, etc shall be determined exclusively by the on-chain governance of AavegotchiDAO.
- Legal Counsel has suggested Cayman offshore foundation with a board consisting of 9 Directors, who are also the multisig signers of the DAO Treasury wallet.
- Legal Counsel shall arrange a local Officer to act as secretary fulfilling basic administrative requirements until further notice.
- Legal Counsel shall arrange a local corporate secretarial service to assist with Foundation formation, documentation and production of financial statements.
- The DAO treasury is currently held by a Pixelcraft Studios multisig. All funds present and future would be transferred to the Board’s multisig below.
- The GHST Bonding Curve Council tokens could potentially also be transferred to the multisig signers, via a new AGIP proposal.
- Eventually, all protocol contracts could be owned by this multisig, or if that is too much risk, could be owned by the DAO itself (onchain voting) with the Board multisig action as a last resort Guardian to prevent malicious transactions.
- Consists of nine doxxed Directors that also act as multisig signers on the DAO Treasury multisig. The DAO Treasury multisig shall be set at 5/9 signers in order to execute.
- Paid position starting at 8000 GHST per year, paying 2000 GHST to each Directory directly from the Treasury multisig every 90 days.
- The Board acts as the executor of the DAO’s wishes. If individual Directors disagree with an action of the DAO, they can choose to resign but they cannot vote or act against a verified on-chain AGIP’s intent.
- Candidates should:
- Be upstanding members of AavegotchiDAO with good reputations
- Be familiar with smart contract interactions
- Possess a hardware wallet and know how to use it
- Be willing to have your name on a Cayman entity and be doxxed to Pixelcraft Studios
- (Nice to have) Be familiar with creating transactions and signing on Gnosis Safe
- The Foundation also requires at least one Officer to serve an official capacity for signing off-chain documentation. Legal offers a package to deliver one local Officer to fulfill this role. This is not a role for advocacy so this Officer will simply execute signatures at the direction of the Directors. Of course, AavegotchiDAO can always revisit or even expand Officer roles at any point.
- Now - Nov 21: DAO Discussion Forum + Signaling
- Nov 21: 3 Day Sigprop on whether or not to incorporate
- Nov 24: 7 Day Coreprop with elections
- Dec 2 - DAO Foundation directors confirmed/elected
- Dec 14 - DAO Foundation officially launched with 9 directors
- Dec 16 - DAO Treasury multisig transfers to the Foundation
- Q2 2023 - Diamond Contracts transfer to Foundation
- Independence; greater separation of Pixelcraft Studios from AavegotchiDAO
- Board can execute proposals on behalf of the DAO (Liquidity provision, GHST staking, funding Dework, etc.)
- More responsibility on AavegotchiDAO governance
- More exposure to any future policy shifts specifically in the Cayman Islands jurisdiction
No, per the Foundation’s Constitution, the Board is legally obligated to execute the wishes of the DAO. It is a streamlined structure where they act on behalf of the DAO. The Board cannot dictate what the DAO should do.
This is crypto, it is impossible to say that something is without risk. However, other well-known projects such as Sushi and ENS have set up similar foundations. As regulation becomes clearer, we can always adapt our strategy.
Instead of participating as an individual, one may be wise to consider participating as a legal entity such as an S-Corp, Delaware LLC, or equivalent entity in your own jurisdiction.
Of course, it is always important to seek your own legal counsel for clarity on your particular situation.
Edit: adjusted the #directorelection Discord thread to go live from time of Sigprop to now. The thread is live now so everyone has more time to signal interest and discuss in sync with this parent thread.