A game-changing framework for DAOs / Lior Zaks

Transcript

hello I don't see you okay so pleasure pleasure to meet you all um well I'm a lot of time in the space if you've been there before you heard since 2010 it didn't also working in the University but also working in the industry in various Enterprises um since ever since I am since always basically so the Ico time I was there the default beginning I was there the Tao's beginning I was there I saw and I experienced the first Dao that was developed and I'm writing my PhD and now

in law about the house and also working as a or mainly working as a as a legal officer for a for two major dials in the space one is the in the D5 space the other one is in the nft gaming space so I experienced the daily daily work of of uh of Dao's in various aspects and what I wanna speak to you today is about a conceptual idea about also one important thing is actually you wanna as an entrepreneur you are creating a dollar gives you the ability to work in the crypto space there are

many kinds of Dao but then but then there are problems and then you think but how can I cash out how can I get the money how can I how I avoid a legal risk how I manage the daily work a lot of questions so the solution will be probably to to establish an entity legal entity because with the legal entity you can open a bank account otherwise you are staying in the crypto and with legal entity you can be compliant with legal entity you can feel it free and certain with what you do so there is always a struggle when it comes

to um how do I how do I utilize those this those ideas into the real world and and those are currently out there in the crypto space so let's go let's speak about this framework so Dao is normally I call it usual suspect because the reality of Taos is those are a great mess okay we have many kind of dows in the space different kind of doubts it could be Guild gildao it could be visit adventured out it could be art thou it could be some Community now so many kinds of

doubts when when you work inside the house when you dig inside the house so those are they are of course decentralized autonomous organization by definition but in real life when you dig inside they are not so decentralized okay there are not only on chain a lot of those activity are off chain there are not the treasury is not always decentralized okay the treasury people control people push the the multisig some people push the multisi some people refuse to push the multistig okay can happen and a lot of operations are also being down with their personal accounts on combination

of so if the Dow has a treasury normally the treasury is not one multi-sig there are several multi-6 plus a lot of personal accounts EOS externally owned accounts that people have to have in order to maintain the operations of the doubts a lot of the processes are off chain a lot of communications between the Dows Dao to another Dao Dao to the users support is done by people done by people that are the Town members or that our employees or whatever contributors we

call them contributors and um contributors in a Dao it's also a terminology we should dig inside because they told you it can contain a lot of a lot of a lot of different things and the current challenges when you come to Idaho and thou Dao if the Tao is not a legal entity the Dao has a has an exposure if the Dao is a legal entity and is not managed as decentralized as it should be it's also a great risk and a great exposure and there are no answers to the question how you should structure a Dao how you should operate a Dao and what is

the risk when I'm doing a Dao though there are a lot of doubts that are active in this space holding a lot of tvl great amounts of tvl and major activity invest in the space especially in the D5 space when you go to the different space it's much more easy to operate with the Dow okay because you cannot or most of the ideas would not be constructed as an entity in the real world so that gives you the option the option to create and maintain some defy operation okay and when so the structures that we currently have have four doubts are we still have

a guy have a gap between the Dao to the real world and what I mean by that so the structures that we have today so I don't know if you heard about the wyomingdale or the Delaware bill for Dao those are a legal considerations they try to try to have a grasp on the idea of adao and try to compare between the Dao to a part partnership the result is the result is a Dao according to to those laws are actually a partnership so you can come and list the Dao or in the under the Wyoming law but at the end the members of the Dao will be will have

liability they will have fiduciary rights or fiduciary obligations so it's a bit problematic when you speak about when when we are dealing with the ideas behind those so the ideas behind us are different the ideas are to be decentralized to be to be anonymous to be to to not to have the ability and to keep the off-chain operations as the main focus and so when you when you want to do something with the Tao in real life and the first question that every Tao will have is how do I open a bank account and I need a legal entity so how do I use it either I send one of my members to open

a bank account it's actually just an example or a I open another company and I transfer money to the company and the company is going to exchange sorry the company is going to exchange and then and then that's the way to to cash out so problems problems problems um and and you can see when you when you dig inside us you can see a lot of structures a lot of so most of the doubts will not go to Wyoming go to and to deliver into Delaware and create a create a Dao an entity a specific entity for that so that they are doing a lot of

combinations okay combinations that are a lot of structures and let's proceed the board what is the board ID the Borg ad is actually a paper wrote by an ID came it came from a paper that a Delphi Labs wrote about the perception of that so how those should be what should be the concept of those what should be the legal concept of those and the idea of the Borg is to have a traditional legal entity that uses the Dao traditional legal entity that uses the

Dao and so to create a structure that's supported out to create a wrapper for the Dao in the real world and to separate between the off chain to the on-chain activities and it's a revolutionary shift because it's the first time that the this conceptual ID is described because as I told you when you go to the industry you can see many variations so I would say combinations but now they give it a name they give it a concept and they give it a direct a Direction and it's actually going to the bottom of

the DNA of the Dao so the idea is to have to separate the decentralized activities and the basic decentralized activity is actually the the treasury management so the treasury and the activities that will be on chain will be part of the Dow the legal entity will be the board the idea is to have a foundation normally non non-for-profit Foundation that will be the wrapper of the Dao will use the Dao for activities so foundations will have part of the treasury to pre to represent the Dows in the real world and normally with the

foundation we have another company in the company the Dow team members or the original contributors are are actually an equity members so they have equity in this company and then they are free to give services to to to the Dao but to other Dao's also and this structure is enhancing of course security transperson transparency scalability because it allows the Dao to to exist in the world it allows the Dao it allows it allows the Dao it enables the doubt the ability to operate in the world using the foundation the foundation will be the Borg the

foundation will be the specific entity the Borg that will be using the Dao and the foundation will be using VC Dao gildao gaming Dao Community Dao and will extract all those operations to to another entity that will be the labs will with the contributors of the Dao or another or another entities the this is actually taking the the doubt to this the Dow decision making also to the next level because nowadays when you look when we look about governance governance models or governance uh governance that those have

so basically you cannot it's not a it's not a real governance if you dig in if you dig into proposals and decisions you would find so first of all normally the tokens holders are not decentralized so you have some main token holders so the power is concentrated concentrated is in in specific specific token holders or wallets second the contributors of the dowels are normally those who have the power of governments especially in the beginning so they can push proposals to some Direction the um proposals are not always proposals

decisions are not always decisions where you do those where you where you actually take those decisions so if you will dig you will see that a lot of those are managing managing the decisions actually on Discord okay and then I have one proposal do you agree do you agree do you agree I erased it and then I erase it and then I have to do this or I don't have to do this it's very complicated the mechanism here will be different because the mechanism will separate the Dao and will release the power of the contributors from the Dao by contracts by a lot of contracts it will

decentralize their power to decentralize their power to manipulate the dial or to direct it out to another to another Direction [Music] um and it will allow of course a lot of scalability for scalability for those to grow because the Dows could operate as a specific entity and also to cooperate with other doubts so if you have open open surface of open place for a for a making governance decisions and the power of the people is the power of the country contributors is a lot more

decentralized then corporations could could come out then if I have a Dao I can raise a proposal in another Dao and create cooperation between us or pushing for different activities and I guess we can finish here the challenges maybe I would say of course the challenges are of course to to make this shift the challenges so when you come and you work with the Dao's existing Dows in this space it's not easy for it to contributors to to release the power it's not easy to Founders to release the power so a founder of a Dao had a good idea in the

beginning but then a lot of time he has the money or he it's hard for him it's hard for him to release to contribute the tokens to release the power off to release the power that he has about decisions to push things to be more decentralized and there are different interests the interests here in in many many verticals of the activity um I think I will finish here and I open if you have questions about the practice about the idea about the theory I would love to hear that and yeah no thank you okay [Applause] foreign

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