THE DAO LEGAL WRAPPER

At the moment, it is assumed that a foundation or a legal structure consisting of the foundation and a special company belonging to it will be created in one of the following jurisdictions to represent the interests of JMC DAO members in the role of DAO Manager: Cayman Islands, British Virgin Islands, Guernsey Island, Panama. The roles of DAO Protectors will be occupied by persons who are protectors/enforcers in the foundation.

When developing this scheme, which is highly likely to protect the DAO participants from any legal liability (1) in relation to each other and (2) in connection with participation in the DAO voting, we took note of the conclusions presented in the following materials:

https://dydx.foundation/blog/legal-framework-non-us-trusts-in-daos

https://github.com/windranger-io/public-docs/blob/main/research/R001.md

When using such legal wrappers, the funds allocated for Investment Projects will (after approval by the DAO voting) first be sent from the DAO Treasury to the Manager (foundation or company). The transfer of these funds to the investment recipient will be carried out after the Manager (e.g. Foundation Council) approves this transaction, following the recommendations received from the DAO. At the same time, technically only two options are possible for transferring funds allocated for the project from Manager’s (foundation) wallet: (1) to the recipient's wallet on the "white" list and (2) back to the DAO Treasury.