guidelines

Guidelines

A compilation of best practices for LL-DAOs across different challenge areas.

Pilots & Best Practices

• dOrg, BBLLC

• ADD YOURS HERE :)

Challenge Areas

In each Challenge Area, we consider a wide solution spectrum — including blockchain code, contract law, and good faith social conventions. We consider both theoretical legal principles as well as actual laws in particular jurisdictions.

1. Formation

   • Derive legal formation documents from the DAO's code and vice versa.

   • Automate legal agreement execution via cryptographic signing and hashing.

   • Record automated legal agreements on-chain and in state registrars when required.

2. Maintenance

   • How do human person(s) effectively assume the DAO's administrative roles?

   • How do third parties effectively assume roles such as the DAO's lawyers and accountants?

   • How can we ensure alignment between the DAO and its surrogate(s)?

3. Contracts

   • How can the DAO enter into legally binding agreements with customers and participants?

   • Arbitration: how are disputes with (and within) the DAO resolved?

   • Liquidated Damages: what remedies are available when the DAO breaches an agreement?

4. Liability

   • How are ordinary business liabilities handled by the DAO and its participants?

   • What about criminal liability for participants?

5. Tax

   • Recommended tax structure (i.e., what elections to make)?

   • How should the DAO account for and pay taxes?

6. Property

   • How does the DAO manage off-chain assets?

   • Tangibles: real property, machinery, equipment?

   • Intangibles: IP, software licenses, domains?

7. Profit Distributions & Tokenization

   • Determine and encode ownership/governance rights of the DAO's Members

   • How can the DAO tokenize its membership or profit interests in a compliant way?