WEBVTT

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Hey guys, welcome to the Just Out podcast,

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the podcast for people starting DAOs.

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Today is a little bit of a

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different episode in case

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you haven't already noticed.

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My name is Leo Henkels and

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I'll be your host today.

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A little bit more about me

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is that I've been doing

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business development at

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MyDAO for a little over a year now.

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And I also help produce the

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Just Out podcast.

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So bear with me.

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We might have some technical

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issues as we are recording live,

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but I will edit this live

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stream and post it to our

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podcast feed at the end of

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the day so everyone can listen to it.

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Before I kind of dive into

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our topic for today, Adam,

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would you like to introduce yourself?

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Sure,

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so regular listeners know me as

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usually the host of the podcast.

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Today, I'm the guest, as you can see.

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But I've been working on

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myDAO for about three years.

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Before that,

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I was consulting for people

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starting and operating DAOs.

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And I got into crypto originally in 2012.

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I've been researching the

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space since then and

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eventually got into it

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professionally to work on DAOs.

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Awesome, awesome.

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So yeah, just again, we're recording live,

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so there may be issues as usual,

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but I'll try to edit them

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out in the podcast feed for everybody.

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So I think we should talk

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about this episode that we're recording.

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And I think the main topic

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that we'll be touching on

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is the DAO regulation that

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was recently passed in the

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Marshall Islands.

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And we thought that there

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would be no better people

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to talk about it than me

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and Adam as we worked on

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implementing these changes

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and then getting them ready

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for our clients.

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um so before we kind of dive

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into the specifics of the

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dow regulation and talk

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about what it means for

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current and future clients

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um adam do you want to

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provide a little bit about

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my dow about the marshall

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islands and its

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relationship with dows so

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that everyone has the

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appropriate context before

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we kind of dive into the regulation

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Yeah, sounds good.

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So first of all,

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a little history of the Marshall Islands.

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So the Marshall Islands

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became an independent

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nation around the end of

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the 1970s after being a German colony,

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a Japanese colony and a U.S.

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colony or territory during World War II.

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And shortly after gaining its independence,

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started a shipping registry.

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And the shipping registry

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has led the Marshall

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Islands to become one of

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the top three destinations

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or jurisdictions for

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shipping related companies to domicile.

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So they have about 40 New

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York Stock Exchange and

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Nasdaq companies that are

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Marshall Islands companies.

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So big player in the shipping industry.

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Fast forwarding to about three years ago,

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I was working on building

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technology for some DAOs

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when I realized that a lot

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of DAOs had a similar problem.

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And that problem was

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actually a legal problem or

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really a jurisdictional and

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legal entity problem,

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which is to say that there

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was nowhere good to incorporate.

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Now,

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this came up because we were offered

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that one DAO I was working

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on was offered a million

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dollar grant from the

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Moonbeam Ecosystem Fund.

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And they said to accept this grant,

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you have to sign the grant agreement,

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which means you need a

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legal entity for your DAO.

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Otherwise,

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you can't enter into a contract.

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And so we looked around the world,

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we looked at Cayman, Swiss, Panama,

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Delaware,

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other popular corporate

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jurisdictions and came to

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the realization that all of

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these options would have

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forced us to make certain compromises.

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So, for example,

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we didn't want to be forced

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to have a board or any kind

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of management team for our DAO.

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We wanted to put power

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directly in the hands of

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our members or token holders.

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Additionally,

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we wanted to be able to have

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anonymous membership.

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So we wanted people to be

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able to hold our token and

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be a member of the company

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and not to have to know

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their name and address, right?

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Because it's not practical

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when you have so many

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members who are just

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holding and trading tokens

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and stuff like that.

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And so both of these things

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were impossible with any

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legal entity that was

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available at the time.

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So we reached out to a

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senator in the Marshall

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Islands and started a

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conversation that led to

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first some brainstorming

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and eventually passing the

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first law in the Marshall

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Islands in late 2021.

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which created a nonprofit DAO LLC,

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a new type of legal entity

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that's made for DAOs and Web3.

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And over the past few years,

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we've passed two additional

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laws at the end of 2022 and

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the end of 2023.

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And then finally, just a couple months ago,

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passed the DAO regulation,

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which is what we're here

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primarily to talk about today,

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but we're going to put it

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in the context of the

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greater story and

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everything going on in the

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marshall islands and in

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that first year so in 2022

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we created mydao which

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stands for marshall islands

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dao mydao is a public

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private partnership with

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the government of the

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marshall islands and it

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follows the same model that

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the marshall islands has

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used in the shipping

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industry very successfully

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which is that there is one

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private company that acts

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as the sole registered

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agent of record for all

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uh in the case of the

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shipping industry for all

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the shipping related

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companies really all

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offshore companies other

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than dows are registered

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through this one registered

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agent that's in a

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partnership with the

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government and so mydao

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follows the same model we

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are the the registered agent for

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DAO LLCs that want to

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register in the Marshall Islands.

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So I think we'll get into a

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little bit more about our

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legal entity itself, the DAO LLC,

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and how it works and its benefits.

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But that's a little bit of

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history as far as how we got here.

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And maybe I'll just add one more thing,

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which is we're now

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approaching about 200 DAOs

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that are registering in the

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Marshall Islands after just

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about two and a half years

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of this project.

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So we're seeing some really

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good growth of DAOs in the

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Marshall Islands.

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Yeah.

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And I'd also highlight that

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we have at least 50 clients

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that are currently

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interested and have signed on with us.

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So over 250 clients that we

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are in talks with total in

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forgetting the DAO LLC,

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which is really exciting.

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And just one other thing I'd

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highlight is that if you

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guys want to dig deeper

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into the Marshall Islands,

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or if you want to hear from some of the

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people in the Marshall

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Islands government and talk

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about and hear them talk

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about their thoughts on crypto.

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There's a great podcast on

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Balaji Srinivasan's feed,

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kind of talking about the

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Marshall Islands and its

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relationship with crypto.

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So if you're interested in

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learning more about that

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and some of the background there,

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I'd recommend checking that out.

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And I'll make sure to link

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that in the show notes

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after the live stream.

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So, Adam,

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I think one thing that I know I

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always have questions about

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and I think other people

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might is what is regulation, right?

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And how is that potentially

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different than legislation?

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We touched on the legislation.

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But what is regulation?

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How is it different from legislation?

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And then in a Marshall Islands context,

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how is it different from

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what the Marshall Islands

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has already passed in the legislation?

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It's a good question.

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I would say the simplest

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answer is just to say that

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there are kind of a couple

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layers of rules or policies

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that guide how a system

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works in a nation or a state.

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Laws are probably the base level.

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You could say the base level

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is the constitution of the

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country or the state.

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The level above that is legislation.

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Usually legislation has to be passed by

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the democratically elected

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governing body of that

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state um and may be

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approved by a president or

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a governor uh and so then

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that legislation becomes

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the the another base layer

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and then regulations are

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usually passed in a sense

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on top of the laws on top

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of the legislation and it

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becomes another set of

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rules that you have to

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follow usually goes into a

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lot more detail so if a law

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maybe goes over the basic core concepts.

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It's like in the case of a DAO LLC,

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brings it into existence

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and defines what it is, right?

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And it does go,

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there's a more nuance in that,

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but then a regulation instead says, okay,

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well,

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here's the forms you have to fill

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out to create one of these DAO LLCs.

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And here's the process you have to follow.

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The regulation even goes

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into what the government

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has to do and how the

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government is supposed to

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operate to facilitate the

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Dow LLCs in the Marshall Islands.

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So it's a little bit

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different probably wherever you look.

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And Leo,

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you brought this point up with me

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earlier too,

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which is you could also even

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look at like case law and

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once there's conflicts in the courts,

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than those decisions that

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are made by judges.

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And by the way,

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this was different in different places,

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right?

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We have people could look

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into the difference between

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like common law versus

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non-common law societies.

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The Marshall Islands follows

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the same pattern as the

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United States in terms of

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how its legal system is structured,

00:08:52.979 --> 00:08:54.580
except that it's just one country.

00:08:54.640 --> 00:08:55.881
It's not a country with a

00:08:55.921 --> 00:08:56.721
bunch of different states

00:08:56.741 --> 00:08:57.562
that have their own rules,

00:08:58.202 --> 00:08:59.522
which can really simplify things.

00:09:00.923 --> 00:09:02.184
But you could look at court cases too,

00:09:02.244 --> 00:09:02.985
and you could argue that

00:09:03.025 --> 00:09:03.826
that's kind of another

00:09:03.866 --> 00:09:05.827
layer even on top of the regulations.

00:09:06.328 --> 00:09:07.088
So you have these different

00:09:07.108 --> 00:09:08.630
layers and you could kind

00:09:08.670 --> 00:09:09.691
of refer to all of it as

00:09:09.791 --> 00:09:11.072
policy in a sense,

00:09:11.492 --> 00:09:12.553
or you could refer to it as

00:09:12.593 --> 00:09:13.754
a legal framework or a

00:09:13.814 --> 00:09:15.275
regulatory environment, right?

00:09:15.335 --> 00:09:16.917
That regulatory environment

00:09:16.937 --> 00:09:18.318
for DAOs in the Marshall Islands,

00:09:18.798 --> 00:09:19.459
if I say that,

00:09:19.519 --> 00:09:20.620
I'm referring to all of it.

00:09:20.960 --> 00:09:22.501
right it's everything from

00:09:22.701 --> 00:09:23.601
the core laws of the

00:09:23.641 --> 00:09:25.642
marshall islands to the dow

00:09:25.702 --> 00:09:27.282
law to the dow regulation

00:09:27.422 --> 00:09:28.703
to eventually there will be

00:09:28.763 --> 00:09:30.503
court cases too and people

00:09:30.523 --> 00:09:31.384
will have to look and see

00:09:31.404 --> 00:09:32.164
well how are the courts

00:09:32.244 --> 00:09:33.404
acting and let me consider

00:09:33.704 --> 00:09:34.825
how that affects you know

00:09:34.865 --> 00:09:36.965
my perception of the policy

00:09:37.005 --> 00:09:37.946
environment the legal

00:09:37.986 --> 00:09:39.046
environment the regulatory

00:09:39.086 --> 00:09:41.267
environment yeah i mean i

00:09:41.307 --> 00:09:42.147
think it's i think that's a

00:09:42.187 --> 00:09:43.208
good point hopefully it

00:09:43.248 --> 00:09:44.768
helps uh clear things up

00:09:44.828 --> 00:09:47.429
for for other people besides me because

00:09:47.945 --> 00:09:49.325
When I'm talking to DAOs

00:09:49.385 --> 00:09:51.566
every day as part of my job here at MyDAO,

00:09:51.966 --> 00:09:52.807
they're always telling me

00:09:52.847 --> 00:09:53.547
about how there's

00:09:54.167 --> 00:09:55.627
regulation in the US and

00:09:55.667 --> 00:09:57.208
then there's legislation

00:09:57.248 --> 00:09:58.708
based in other jurisdictions.

00:09:58.788 --> 00:10:00.049
And then there's all

00:10:00.089 --> 00:10:02.870
different types of crypto

00:10:04.370 --> 00:10:05.470
things being passed and

00:10:05.490 --> 00:10:06.811
they're not sure what to follow.

00:10:07.031 --> 00:10:08.051
And I think that's the

00:10:08.071 --> 00:10:09.292
reality is that crypto

00:10:09.452 --> 00:10:10.692
regulation legislation is

00:10:10.752 --> 00:10:12.893
pretty ambiguous and pretty

00:10:12.993 --> 00:10:14.053
confusing worldwide.

00:10:14.513 --> 00:10:15.273
And something that we're

00:10:15.313 --> 00:10:15.834
trying to do at the

00:10:15.854 --> 00:10:17.134
Marshall Islands is simplify it.

00:10:17.975 --> 00:10:19.336
and give someone and give

00:10:19.376 --> 00:10:21.977
DAOs really just one way to

00:10:22.037 --> 00:10:22.918
follow so they don't have

00:10:22.958 --> 00:10:24.639
to pull in from different

00:10:24.659 --> 00:10:25.699
jurisdictions to try to

00:10:25.739 --> 00:10:27.180
figure out what to do as a

00:10:27.220 --> 00:10:28.201
global organization.

00:10:28.221 --> 00:10:30.842
Yeah, go ahead.

00:10:30.882 --> 00:10:31.442
I think it's worth

00:10:31.483 --> 00:10:33.364
mentioning that the reality

00:10:33.424 --> 00:10:35.665
is that unfortunately, if you're a global

00:10:36.165 --> 00:10:37.285
project a global

00:10:37.345 --> 00:10:39.066
organization you do have to

00:10:39.146 --> 00:10:41.087
take into account laws all

00:10:41.127 --> 00:10:42.728
over the world you know for

00:10:42.788 --> 00:10:44.628
example wherever you hire

00:10:44.688 --> 00:10:46.289
someone usually it doesn't

00:10:46.329 --> 00:10:47.629
matter what your home

00:10:47.649 --> 00:10:48.810
jurisdiction is they may

00:10:48.850 --> 00:10:49.510
have rules you have to

00:10:49.550 --> 00:10:50.470
follow but you have to

00:10:50.510 --> 00:10:51.471
follow the rules the

00:10:51.511 --> 00:10:52.911
policies where you're

00:10:52.931 --> 00:10:54.532
hiring the person let's say

00:10:54.572 --> 00:10:55.512
you're raising money from

00:10:55.572 --> 00:10:56.753
an investor you have to

00:10:56.793 --> 00:10:58.013
follow the rules where that

00:10:58.073 --> 00:10:59.594
person is located and where

00:10:59.614 --> 00:11:00.514
their transaction takes

00:11:00.574 --> 00:11:01.555
place not just where your

00:11:01.575 --> 00:11:02.395
home jurisdiction is

00:11:02.895 --> 00:11:03.976
So there are certain core

00:11:04.036 --> 00:11:04.897
things that depend

00:11:04.997 --> 00:11:07.519
primarily on your chosen jurisdiction,

00:11:07.579 --> 00:11:08.920
especially the structure of

00:11:08.960 --> 00:11:09.801
your legal entity.

00:11:10.101 --> 00:11:11.702
It's like, how do you track your members?

00:11:11.802 --> 00:11:13.103
How do you make decisions?

00:11:13.484 --> 00:11:14.765
Are you required to have a

00:11:14.825 --> 00:11:16.406
board or officers or other things?

00:11:16.446 --> 00:11:17.667
And we'll get into some of

00:11:17.687 --> 00:11:18.608
the unique elements of the

00:11:18.648 --> 00:11:21.030
Marshall Islands Dow LLC legal entity.

00:11:21.410 --> 00:11:22.391
But there are all kinds of

00:11:22.431 --> 00:11:23.652
rules that you do have to follow.

00:11:23.672 --> 00:11:24.433
Let's say you're holding an

00:11:24.493 --> 00:11:25.754
event in Switzerland.

00:11:25.834 --> 00:11:27.075
There might be Swiss laws

00:11:27.095 --> 00:11:28.776
that apply to holding events there.

00:11:29.016 --> 00:11:29.817
It doesn't matter if you're

00:11:29.837 --> 00:11:30.698
a Marshall Islands company

00:11:30.738 --> 00:11:32.119
or a Delaware company in that regard.

00:11:33.120 --> 00:11:35.082
So you do, I'd say,

00:11:35.843 --> 00:11:36.684
I don't know if it's fair to say,

00:11:36.784 --> 00:11:37.785
unfortunately, I guess,

00:11:37.825 --> 00:11:38.786
just because it can be

00:11:38.826 --> 00:11:39.987
challenging and costly.

00:11:40.048 --> 00:11:41.029
We say, unfortunately,

00:11:41.309 --> 00:11:42.070
but that's the nature of

00:11:42.110 --> 00:11:42.971
the world that we live in,

00:11:43.051 --> 00:11:44.553
is that if you're operating globally,

00:11:44.853 --> 00:11:45.974
you do have to take global

00:11:45.994 --> 00:11:46.835
rules into account.

00:11:47.115 --> 00:11:48.237
But it's also important to

00:11:48.297 --> 00:11:49.338
pick the right home

00:11:49.478 --> 00:11:51.721
jurisdiction to domicile your company.

00:11:52.490 --> 00:11:52.830
Gotcha.

00:11:52.890 --> 00:11:53.451
That makes sense.

00:11:53.511 --> 00:11:53.671
Yeah.

00:11:53.691 --> 00:11:54.712
I think that clears things up.

00:11:55.412 --> 00:11:55.692
Awesome.

00:11:56.112 --> 00:11:57.714
So you want to kind of zoom in into,

00:11:57.894 --> 00:12:00.055
into like the regulation itself and,

00:12:00.295 --> 00:12:01.596
and how that might change

00:12:01.636 --> 00:12:02.877
some of our current processes.

00:12:03.918 --> 00:12:04.238
I think,

00:12:04.378 --> 00:12:06.159
I think probably the most

00:12:06.219 --> 00:12:07.700
applicable way is how is it

00:12:07.740 --> 00:12:09.942
changing our processes for

00:12:10.182 --> 00:12:11.003
future customers?

00:12:11.783 --> 00:12:12.163
And I think,

00:12:12.263 --> 00:12:13.724
I think the most common

00:12:13.865 --> 00:12:15.265
question that we get are

00:12:15.666 --> 00:12:16.346
questions around the

00:12:16.386 --> 00:12:17.487
registration process.

00:12:18.348 --> 00:12:19.188
So you kind of want to dive

00:12:19.248 --> 00:12:20.369
in how the regulation is

00:12:20.609 --> 00:12:21.810
changing things there.

00:12:22.948 --> 00:12:24.288
I mean, yeah, first of all,

00:12:24.969 --> 00:12:25.829
one of the goals for the

00:12:25.869 --> 00:12:28.649
regulation is to be a plain

00:12:28.769 --> 00:12:31.050
English document that anyone can read.

00:12:31.490 --> 00:12:34.211
Now, admittedly, as I page through it,

00:12:34.311 --> 00:12:35.631
it is 19 pages long.

00:12:35.671 --> 00:12:37.512
Now, several of those pages are forms.

00:12:38.072 --> 00:12:38.932
And that's one of the nice

00:12:38.972 --> 00:12:40.112
things about the regulation

00:12:40.192 --> 00:12:41.273
is that you can go and see

00:12:41.333 --> 00:12:42.113
what are the forms you're

00:12:42.133 --> 00:12:42.953
going to have to fill out

00:12:43.473 --> 00:12:44.573
when you're applying for a

00:12:44.613 --> 00:12:47.454
DAO LLC in the Marshall Islands.

00:12:47.614 --> 00:12:49.435
It does look a lot like a law.

00:12:49.455 --> 00:12:50.675
There's a lot in there.

00:12:51.055 --> 00:12:52.356
but but but it's generally

00:12:52.416 --> 00:12:53.437
speaking meant to be the

00:12:53.477 --> 00:12:55.178
document that tells you as

00:12:55.218 --> 00:12:56.159
someone thinking about

00:12:56.199 --> 00:12:57.460
setting up a dow llc in the

00:12:57.480 --> 00:12:59.362
marshall islands what you

00:12:59.402 --> 00:13:00.242
have to do what the

00:13:00.282 --> 00:13:01.623
requirements are so you're

00:13:01.643 --> 00:13:02.984
going to find in there very

00:13:03.105 --> 00:13:05.246
clear-cut definitions of

00:13:05.306 --> 00:13:06.547
things like what is a

00:13:06.587 --> 00:13:08.489
beneficial owner who has to

00:13:08.529 --> 00:13:10.270
do kyc so you know one of

00:13:10.290 --> 00:13:11.631
the benefits of dow llc's

00:13:11.671 --> 00:13:13.292
in the marshall islands is

00:13:13.393 --> 00:13:14.794
that you have relatively

00:13:14.854 --> 00:13:17.236
limited kyc requirements um

00:13:17.476 --> 00:13:19.017
you know the the nice thing about

00:13:19.297 --> 00:13:20.939
doing everything on chain if

00:13:20.979 --> 00:13:22.039
you are a DAO that does

00:13:22.100 --> 00:13:23.541
everything on chain is that

00:13:23.581 --> 00:13:24.642
all that information is

00:13:24.702 --> 00:13:25.643
publicly available.

00:13:26.043 --> 00:13:27.644
So my DAO and the government

00:13:27.684 --> 00:13:28.645
and law enforcement can

00:13:28.685 --> 00:13:29.526
verify that you're not

00:13:29.566 --> 00:13:30.727
doing anything untoward.

00:13:31.027 --> 00:13:31.948
So they don't necessarily

00:13:32.008 --> 00:13:33.830
need to know who all of your members are.

00:13:34.710 --> 00:13:35.910
they can look on chain and

00:13:35.930 --> 00:13:36.710
make sure that you're not

00:13:37.131 --> 00:13:38.651
engaging in any criminal activity.

00:13:39.911 --> 00:13:41.031
And so most of the members

00:13:41.071 --> 00:13:42.692
of a DAO LLC can be anonymous,

00:13:42.772 --> 00:13:43.692
but if you want to know who

00:13:43.752 --> 00:13:44.972
does have to do KYC,

00:13:45.172 --> 00:13:46.092
and I'll tell you in a second,

00:13:46.132 --> 00:13:47.132
it's pretty straightforward,

00:13:48.013 --> 00:13:49.733
then you can find that in the regulation.

00:13:50.353 --> 00:13:52.153
And basically what we're talking about is,

00:13:53.054 --> 00:13:54.534
first of all, any beneficial owners,

00:13:54.574 --> 00:13:55.674
which is defined as anyone

00:13:55.694 --> 00:13:57.715
with 25% or more governance

00:13:57.775 --> 00:13:59.875
rights of voting rights in the company,

00:14:00.315 --> 00:14:00.615
By the way,

00:14:00.635 --> 00:14:01.917
I always say company because

00:14:01.937 --> 00:14:03.057
that's the legal term for

00:14:03.098 --> 00:14:04.038
what you're turning your

00:14:04.078 --> 00:14:05.920
DAO into in a sense, right?

00:14:06.580 --> 00:14:07.681
Or leveraging as part of

00:14:07.721 --> 00:14:08.782
your DAOs ecosystem as

00:14:08.822 --> 00:14:10.063
you're creating a company.

00:14:10.464 --> 00:14:11.364
And that's the term that

00:14:11.404 --> 00:14:12.265
applies to all different

00:14:12.285 --> 00:14:12.926
types of companies,

00:14:12.946 --> 00:14:13.987
whether it's corporations,

00:14:14.007 --> 00:14:15.027
whether it's foundations,

00:14:15.047 --> 00:14:17.129
whether it's LLCs and DAO LLCs.

00:14:17.530 --> 00:14:18.410
So I'll say company.

00:14:18.450 --> 00:14:19.611
I know a lot of DAOs think

00:14:19.651 --> 00:14:20.612
of themselves as something

00:14:20.652 --> 00:14:22.814
different and that's fine, right?

00:14:22.854 --> 00:14:23.334
Just because you're a

00:14:23.354 --> 00:14:24.055
company doesn't mean you

00:14:24.075 --> 00:14:26.277
have to act like other companies do.

00:14:27.798 --> 00:14:28.298
But anyways,

00:14:28.559 --> 00:14:29.619
when you're forming the company,

00:14:30.520 --> 00:14:32.342
you need anyone who has 25%

00:14:32.342 --> 00:14:33.142
or more voting rights,

00:14:33.202 --> 00:14:35.644
which is frankly often no one, right?

00:14:35.864 --> 00:14:37.866
If you're already a DAO at some scale,

00:14:37.926 --> 00:14:39.647
you may have no one who has

00:14:39.647 --> 00:14:41.629
25% or more voting rights.

00:14:42.209 --> 00:14:43.570
If there's no beneficial

00:14:43.650 --> 00:14:44.691
owners in that regard,

00:14:45.012 --> 00:14:47.874
then all managing members have to do KYC.

00:14:48.314 --> 00:14:48.474
Now,

00:14:48.614 --> 00:14:50.116
you don't have to have managing members.

00:14:50.476 --> 00:14:51.737
So managing members are kind

00:14:51.757 --> 00:14:52.637
of the equivalent of a

00:14:52.698 --> 00:14:54.379
board or officers or directors,

00:14:54.439 --> 00:14:55.199
but for an LLC.

00:14:56.000 --> 00:14:57.001
And in the case of the DAO

00:14:57.041 --> 00:14:57.961
LLC in the Marshall Islands,

00:14:57.981 --> 00:14:59.242
you don't have to have managing members.

00:14:59.362 --> 00:15:00.203
But if you do,

00:15:00.403 --> 00:15:01.564
they're next in line to have

00:15:01.584 --> 00:15:03.225
to perform KYC as the

00:15:03.265 --> 00:15:04.185
people who generally have

00:15:04.205 --> 00:15:05.926
the most control over the organization.

00:15:07.127 --> 00:15:08.708
If there's no managing members either,

00:15:08.948 --> 00:15:10.629
then we default to one

00:15:10.829 --> 00:15:11.890
person from the DAO.

00:15:12.070 --> 00:15:14.912
Any one person has to do KYC.

00:15:16.073 --> 00:15:18.334
And so a lot of our DAOs

00:15:18.394 --> 00:15:20.516
have one person who has to do KYC,

00:15:20.536 --> 00:15:21.216
whether it's the only

00:15:21.276 --> 00:15:22.437
beneficial owner or maybe

00:15:22.457 --> 00:15:23.317
at the time of founding,

00:15:23.357 --> 00:15:24.418
there's only one member involved.

00:15:24.698 --> 00:15:26.740
And then you're going to launch the DAO,

00:15:26.780 --> 00:15:27.480
launch a token,

00:15:27.600 --> 00:15:29.001
and that person has to do KYC.

00:15:29.301 --> 00:15:30.082
For many of our clients,

00:15:30.142 --> 00:15:31.023
it's just one person.

00:15:31.083 --> 00:15:31.723
But at the most,

00:15:32.003 --> 00:15:32.804
it's those beneficial

00:15:32.864 --> 00:15:37.307
owners and or managing members.

00:15:37.387 --> 00:15:38.228
So that's one thing that's

00:15:38.248 --> 00:15:39.489
just a lot more clear now.

00:15:39.509 --> 00:15:41.290
You can find it in the regulation.

00:15:42.071 --> 00:15:42.911
You know that it's going to

00:15:42.991 --> 00:15:44.572
be enforced consistently

00:15:44.652 --> 00:15:45.633
because it's written into

00:15:45.653 --> 00:15:46.754
the regulation and into the

00:15:46.814 --> 00:15:47.895
forms in the regulation.

00:15:49.456 --> 00:15:50.977
Another example of what's in

00:15:51.017 --> 00:15:51.737
the regulation.

00:15:51.837 --> 00:15:53.498
So we've created a concept.

00:15:53.698 --> 00:15:55.279
So one of the challenges with DAOs,

00:15:55.860 --> 00:15:57.340
as people listening to this probably know,

00:15:57.400 --> 00:15:58.641
is that sometimes it's hard

00:15:58.661 --> 00:16:00.842
to know who to talk to at a DAO, right?

00:16:00.943 --> 00:16:01.883
Let's say you're going to a

00:16:01.923 --> 00:16:02.844
DAO and you're trying to

00:16:03.164 --> 00:16:04.665
ask them a question about their DAO.

00:16:04.705 --> 00:16:06.586
Hey, what's the answer to this?

00:16:06.646 --> 00:16:07.686
How does this operate?

00:16:08.027 --> 00:16:09.127
Sometimes it's tough because

00:16:09.167 --> 00:16:10.328
these DAOs can operate in

00:16:10.508 --> 00:16:11.809
new ways that are much more

00:16:11.849 --> 00:16:14.831
decentralized in their social, political,

00:16:15.411 --> 00:16:15.571
you know,

00:16:15.591 --> 00:16:17.473
kind of corporate structure such

00:16:17.514 --> 00:16:18.194
that there's no one

00:16:18.234 --> 00:16:19.456
necessarily in charge of

00:16:19.676 --> 00:16:20.517
the question that you're

00:16:20.537 --> 00:16:22.519
asking or no one in charge

00:16:22.579 --> 00:16:23.781
of external relations or

00:16:23.821 --> 00:16:25.162
communications or whatever it is.

00:16:25.603 --> 00:16:27.545
So we at my DAO and the

00:16:27.585 --> 00:16:28.787
government needs to know

00:16:28.807 --> 00:16:30.088
that there's someone at the

00:16:30.128 --> 00:16:31.470
DAO we can talk to about

00:16:31.510 --> 00:16:32.171
official matters.

00:16:32.671 --> 00:16:33.853
Let's say your DAO gets sued.

00:16:34.373 --> 00:16:35.774
let's say your annual

00:16:35.814 --> 00:16:37.015
filings are overdue and

00:16:37.055 --> 00:16:39.096
you're at risk of facing a fee, right?

00:16:39.136 --> 00:16:41.437
Like we need to know who to

00:16:41.597 --> 00:16:43.438
contact to inform about

00:16:43.478 --> 00:16:44.299
these important matters.

00:16:44.739 --> 00:16:45.600
So we've introduced a

00:16:45.640 --> 00:16:47.921
concept called a representative agent.

00:16:48.301 --> 00:16:50.943
So different from the registered agent,

00:16:50.963 --> 00:16:51.663
which is myDAO,

00:16:51.703 --> 00:16:52.764
but the representative

00:16:52.844 --> 00:16:54.705
agent is just a person who

00:16:54.745 --> 00:16:56.126
gives us their contact info

00:16:56.246 --> 00:16:58.487
and says we are available

00:16:58.547 --> 00:16:59.928
to be contacted about this DAO.

00:17:00.648 --> 00:17:01.869
And so there's a forum for that.

00:17:01.949 --> 00:17:02.830
It's something that DAOs are

00:17:02.870 --> 00:17:04.151
required to keep updated,

00:17:04.531 --> 00:17:06.092
is who's that contact

00:17:06.132 --> 00:17:07.493
person that the government

00:17:07.533 --> 00:17:09.795
and myDAO can get in touch with.

00:17:11.376 --> 00:17:13.498
Another nice thing about the

00:17:14.219 --> 00:17:15.880
regulation that maybe

00:17:15.920 --> 00:17:17.801
applies less directly to our clients,

00:17:17.861 --> 00:17:18.722
but we've introduced

00:17:18.922 --> 00:17:20.223
process improvements on the

00:17:20.263 --> 00:17:22.085
government side so that

00:17:22.105 --> 00:17:23.646
registrations will happen faster.

00:17:24.106 --> 00:17:24.826
And we're currently in the

00:17:24.887 --> 00:17:26.567
middle of implementing these changes.

00:17:27.028 --> 00:17:28.128
And so the benefits might

00:17:28.168 --> 00:17:29.829
not be seen for another month or two,

00:17:29.849 --> 00:17:31.350
at least the greatest benefits.

00:17:32.211 --> 00:17:32.931
But for example,

00:17:32.971 --> 00:17:34.452
the whole registration

00:17:34.492 --> 00:17:35.412
process on the government

00:17:35.452 --> 00:17:37.694
side used to be very manual.

00:17:38.034 --> 00:17:39.155
There was a lot of literally

00:17:39.215 --> 00:17:40.235
printed documents, right?

00:17:40.275 --> 00:17:41.336
Bring three copies of this

00:17:41.376 --> 00:17:42.516
document to this office and

00:17:42.536 --> 00:17:43.297
this office brings

00:17:43.705 --> 00:17:44.566
one of them to this other

00:17:44.626 --> 00:17:45.987
office and one to this other office,

00:17:46.027 --> 00:17:46.207
right?

00:17:46.507 --> 00:17:47.808
And we were always driving

00:17:47.828 --> 00:17:49.089
around and trying to make

00:17:49.129 --> 00:17:50.030
sure the documents were

00:17:50.050 --> 00:17:50.771
going to the right place.

00:17:51.131 --> 00:17:51.291
Well,

00:17:51.331 --> 00:17:52.992
now the whole process is taking place

00:17:53.073 --> 00:17:53.553
digitally.

00:17:54.434 --> 00:17:55.635
Same thing for payments, right?

00:17:56.635 --> 00:17:57.716
On behalf of the DAO,

00:17:57.756 --> 00:18:00.799
we would go to collect a pay slip,

00:18:01.279 --> 00:18:02.959
bring the payslip to another office,

00:18:03.059 --> 00:18:04.460
pay the payslip, get a receipt,

00:18:04.520 --> 00:18:05.580
bring the receipt back in

00:18:05.760 --> 00:18:07.400
triplicate to the other office.

00:18:08.001 --> 00:18:10.061
And now we're going to have

00:18:10.121 --> 00:18:11.141
all digital payments,

00:18:11.861 --> 00:18:13.322
just normal credit cards

00:18:13.382 --> 00:18:15.442
and stuff and checks or

00:18:15.802 --> 00:18:18.603
checks within the next couple of months.

00:18:19.783 --> 00:18:22.144
So there's that improvement.

00:18:22.824 --> 00:18:23.604
Something else that goes in

00:18:23.644 --> 00:18:25.325
the regulation is a list of

00:18:25.405 --> 00:18:26.565
sanctions for violations.

00:18:27.025 --> 00:18:28.606
So previously there was some

00:18:28.866 --> 00:18:29.946
confusion as to, well,

00:18:29.966 --> 00:18:31.287
what happens if you don't

00:18:31.827 --> 00:18:32.547
report all of your

00:18:32.567 --> 00:18:34.368
beneficial owners accurately?

00:18:34.708 --> 00:18:35.989
What happens if you don't

00:18:37.009 --> 00:18:38.450
take a step that's required

00:18:38.530 --> 00:18:40.130
by the regulation or the law?

00:18:40.451 --> 00:18:40.631
Well,

00:18:40.671 --> 00:18:42.771
now it's very clear in the regulation

00:18:42.791 --> 00:18:44.632
the fines are reasonable

00:18:45.052 --> 00:18:46.373
compared to fines that are

00:18:46.393 --> 00:18:47.974
levied on other companies

00:18:47.994 --> 00:18:48.954
in other places.

00:18:49.567 --> 00:18:51.168
and they're specific and you

00:18:51.208 --> 00:18:52.008
know what to expect.

00:18:53.048 --> 00:18:54.869
So those are some examples and maybe Leo,

00:18:54.889 --> 00:18:55.809
if there's anything top of

00:18:55.849 --> 00:18:57.130
mind for you or anything

00:18:57.170 --> 00:18:58.350
else you want me to dig into,

00:18:58.370 --> 00:18:59.470
you can let me know.

00:19:00.131 --> 00:19:02.271
Yeah, I think that's a great overview.

00:19:02.932 --> 00:19:04.312
And I think it was cool how

00:19:04.332 --> 00:19:05.152
you touched on some of the

00:19:05.272 --> 00:19:06.213
behind the scenes that goes

00:19:06.293 --> 00:19:07.233
on in the Marshall Islands

00:19:08.474 --> 00:19:09.814
and how much time we spend

00:19:10.314 --> 00:19:11.235
working on these

00:19:11.275 --> 00:19:13.175
applications for each of our DAO LLCs.

00:19:14.216 --> 00:19:16.756
I think oftentimes I talk to

00:19:16.796 --> 00:19:17.617
customers who,

00:19:18.537 --> 00:19:19.678
I think everything's digitized,

00:19:19.758 --> 00:19:21.580
but we are working to get

00:19:21.620 --> 00:19:22.541
there and we are working to

00:19:22.561 --> 00:19:23.642
make the process faster.

00:19:23.702 --> 00:19:26.244
And I'm excited to see how

00:19:26.304 --> 00:19:28.186
fast we can start pushing

00:19:28.226 --> 00:19:29.627
through these DAO LLCs in

00:19:29.667 --> 00:19:30.748
conjunction with the government.

00:19:31.589 --> 00:19:32.610
But one thing I really did

00:19:32.650 --> 00:19:33.891
want to zoom in on, Adam,

00:19:34.091 --> 00:19:36.934
is the registration process.

00:19:37.654 --> 00:19:40.797
So specifically, if I'm a new DAO LLC,

00:19:41.958 --> 00:19:42.899
what has changed now?

00:19:43.429 --> 00:19:44.930
what do I need to be aware

00:19:45.010 --> 00:19:46.731
of when I'm signing up and

00:19:47.291 --> 00:19:48.292
want to begin the

00:19:48.332 --> 00:19:49.813
registration process with my DAO?

00:19:50.073 --> 00:19:50.934
And I think you touched a

00:19:50.954 --> 00:19:51.834
little bit on it with the

00:19:51.854 --> 00:19:54.856
KYC and the representative agent form,

00:19:55.276 --> 00:19:56.977
but there are two new forms,

00:19:57.718 --> 00:19:58.538
the beneficial owner

00:19:58.598 --> 00:20:01.180
information report and the

00:20:01.200 --> 00:20:02.100
certificate of formation

00:20:02.120 --> 00:20:02.901
has been updated.

00:20:02.981 --> 00:20:04.702
And I'd kind of like you to touch on that

00:20:05.537 --> 00:20:06.998
and what it means for future

00:20:07.018 --> 00:20:08.500
clients and how ultimately

00:20:08.600 --> 00:20:11.002
I think it will make the

00:20:11.222 --> 00:20:12.363
future onboarding process

00:20:12.483 --> 00:20:13.564
easier for some of these clients.

00:20:14.603 --> 00:20:15.363
Yeah, sounds good.

00:20:15.423 --> 00:20:16.623
And it probably sounds like

00:20:16.683 --> 00:20:18.464
a lot when I go over it live.

00:20:19.004 --> 00:20:20.224
We have, luckily,

00:20:20.584 --> 00:20:22.225
a portal that Leo has built

00:20:23.505 --> 00:20:24.845
that walks people through

00:20:24.865 --> 00:20:26.306
the whole process step by step.

00:20:26.666 --> 00:20:29.086
So once someone does sign up,

00:20:29.106 --> 00:20:29.906
the whole thing, I think,

00:20:29.946 --> 00:20:31.007
can feel a little bit more

00:20:31.047 --> 00:20:31.627
straightforward.

00:20:32.627 --> 00:20:33.427
But just to go through that

00:20:33.467 --> 00:20:34.447
in a little bit of detail.

00:20:34.487 --> 00:20:36.828
So a couple of things that are not,

00:20:37.248 --> 00:20:39.448
we don't give examples in the regulation,

00:20:39.588 --> 00:20:41.669
but MyDAO provides template documents for

00:20:42.209 --> 00:20:44.170
is that every DAO needs a

00:20:44.230 --> 00:20:45.410
certificate of formation

00:20:45.830 --> 00:20:46.850
and an operating agreement.

00:20:47.470 --> 00:20:48.291
And the certificate of

00:20:48.311 --> 00:20:49.591
formation is just this

00:20:49.771 --> 00:20:51.332
one-page template document

00:20:52.212 --> 00:20:53.232
that states some basic

00:20:53.252 --> 00:20:54.432
information about the company,

00:20:54.492 --> 00:20:55.433
its registered agent,

00:20:55.473 --> 00:20:57.113
its principal office address,

00:20:57.153 --> 00:20:58.614
which we provide in the Marshall Islands,

00:20:58.654 --> 00:20:59.354
although they can choose

00:20:59.394 --> 00:21:00.314
something else if they want.

00:21:01.775 --> 00:21:03.017
And one of the new things

00:21:03.057 --> 00:21:04.018
we've introduced in this

00:21:04.078 --> 00:21:04.959
regulation is that the

00:21:04.999 --> 00:21:06.140
certificate of formation

00:21:06.200 --> 00:21:07.882
has to include a list of

00:21:08.002 --> 00:21:09.263
all of the smart contracts

00:21:09.544 --> 00:21:11.686
owned or leveraged by the

00:21:11.726 --> 00:21:12.687
DAO in certain ways.

00:21:13.107 --> 00:21:14.769
So if you have a treasury on chain,

00:21:14.809 --> 00:21:15.710
that has to be listed.

00:21:15.810 --> 00:21:16.391
If you have...

00:21:16.751 --> 00:21:17.992
a governance smart contract,

00:21:18.072 --> 00:21:18.992
if you have a token that

00:21:19.032 --> 00:21:19.933
tracks your membership,

00:21:20.233 --> 00:21:21.014
those things have to be

00:21:21.054 --> 00:21:22.735
listed in the certificate of formation.

00:21:23.175 --> 00:21:25.436
And this goes back to the concept that,

00:21:25.796 --> 00:21:26.037
you know,

00:21:26.357 --> 00:21:29.338
we need to know how to observe the DAO,

00:21:29.779 --> 00:21:30.039
right?

00:21:30.079 --> 00:21:30.739
And this is, again,

00:21:30.779 --> 00:21:31.980
the trade-off in exchange

00:21:32.020 --> 00:21:33.201
for having almost complete

00:21:33.281 --> 00:21:35.562
anonymity for most of your membership.

00:21:36.162 --> 00:21:36.923
We just have to be able to

00:21:36.943 --> 00:21:37.643
look at those smart

00:21:37.683 --> 00:21:39.264
contracts and follow the

00:21:39.304 --> 00:21:40.425
money and make sure that

00:21:40.818 --> 00:21:42.419
You know, there's nothing bad happening.

00:21:43.019 --> 00:21:44.559
And so that goes in the

00:21:44.599 --> 00:21:45.620
certificate of formation

00:21:45.660 --> 00:21:46.980
now for new DAOs.

00:21:48.500 --> 00:21:50.981
And the operating agreement,

00:21:51.301 --> 00:21:53.082
which we also have a new template for.

00:21:53.142 --> 00:21:54.062
So anyone who's worked with

00:21:54.122 --> 00:21:55.283
us before has seen our

00:21:55.343 --> 00:21:56.603
template operating agreements.

00:21:56.703 --> 00:21:57.743
It's one of the valuable

00:21:57.783 --> 00:21:58.924
parts of the registration

00:21:58.964 --> 00:22:00.084
process that we provide.

00:22:00.464 --> 00:22:02.465
Now we have one giant template

00:22:02.965 --> 00:22:04.686
that replaces all of the old

00:22:04.726 --> 00:22:06.127
templates and really walks

00:22:06.187 --> 00:22:10.429
you through all of the step by step.

00:22:10.469 --> 00:22:12.130
Here's what the operating agreement means.

00:22:12.650 --> 00:22:13.651
Okay, at this next step,

00:22:13.751 --> 00:22:15.752
if you're creating a nonprofit LLC,

00:22:15.792 --> 00:22:16.712
you need to do the following.

00:22:16.752 --> 00:22:18.413
If you're creating a for-profit LLC,

00:22:18.433 --> 00:22:19.474
you need to do this instead.

00:22:19.994 --> 00:22:22.115
If you're using a token to

00:22:22.155 --> 00:22:23.056
track your membership,

00:22:23.396 --> 00:22:24.717
use the following paragraph

00:22:24.837 --> 00:22:25.697
and modify it.

00:22:25.817 --> 00:22:27.758
If you're not using a token

00:22:27.798 --> 00:22:28.819
or using a multi-sig,

00:22:29.139 --> 00:22:30.140
use the following paragraph.

00:22:30.300 --> 00:22:31.000
Just throughout,

00:22:31.360 --> 00:22:32.601
it goes through and talks about,

00:22:32.621 --> 00:22:34.182
here's language you might

00:22:34.222 --> 00:22:34.962
want to include in your

00:22:35.002 --> 00:22:35.663
operating agreement.

00:22:36.203 --> 00:22:36.303
Now,

00:22:36.343 --> 00:22:37.504
maybe I should have started by saying

00:22:37.544 --> 00:22:39.025
the operating agreement is

00:22:39.626 --> 00:22:41.367
the document that defines

00:22:41.647 --> 00:22:44.649
how your legal entity works

00:22:45.190 --> 00:22:46.110
and therefore how it

00:22:46.170 --> 00:22:47.451
connects to any activity

00:22:47.471 --> 00:22:48.672
that's taking place on chain.

00:22:49.112 --> 00:22:50.253
So a traditional operating

00:22:50.273 --> 00:22:51.534
agreement and people may be

00:22:51.574 --> 00:22:53.235
more familiar with the term bylaws,

00:22:53.395 --> 00:22:54.336
which is usually used in

00:22:54.356 --> 00:22:56.458
the case of corporations or foundations.

00:22:57.238 --> 00:22:59.041
The operating agreement is the same thing,

00:22:59.101 --> 00:23:00.603
but for any kind of LLC,

00:23:00.643 --> 00:23:01.905
including a DAO LLC.

00:23:02.465 --> 00:23:04.488
And a traditional LLC has an

00:23:04.548 --> 00:23:05.429
operating agreement that

00:23:05.489 --> 00:23:07.172
probably says the list of

00:23:07.252 --> 00:23:08.694
our members is included on

00:23:08.754 --> 00:23:10.156
Exhibit A. And then you

00:23:10.196 --> 00:23:10.877
list the names and

00:23:10.937 --> 00:23:12.098
addresses of all your members.

00:23:12.619 --> 00:23:13.639
Well, with a DAO LLC,

00:23:13.679 --> 00:23:14.760
what you can do instead is

00:23:14.780 --> 00:23:16.861
you say the members are

00:23:16.921 --> 00:23:18.902
tracked using the token on

00:23:18.962 --> 00:23:20.462
this blockchain at this address.

00:23:21.022 --> 00:23:22.283
And by holding a token,

00:23:22.363 --> 00:23:23.303
someone is a member.

00:23:23.383 --> 00:23:24.444
By acquiring a token,

00:23:24.484 --> 00:23:25.264
they become a member.

00:23:25.324 --> 00:23:26.685
By no longer holding a token,

00:23:26.725 --> 00:23:27.765
they're no longer a member.

00:23:28.405 --> 00:23:29.466
And now you've taken that

00:23:30.006 --> 00:23:31.246
same corporate form that

00:23:31.306 --> 00:23:32.147
everyone in the world is

00:23:32.167 --> 00:23:33.607
fairly familiar with and

00:23:33.667 --> 00:23:34.828
just made a small change,

00:23:34.868 --> 00:23:36.068
which is instead of listing

00:23:36.088 --> 00:23:37.229
the members on Exhibit A,

00:23:37.509 --> 00:23:38.509
you're listing the members

00:23:38.669 --> 00:23:40.110
in a smart contract on the blockchain.

00:23:41.170 --> 00:23:43.231
And so throughout there's opportunities to,

00:23:43.251 --> 00:23:43.472
you know,

00:23:43.492 --> 00:23:44.332
you can do the same thing with

00:23:44.372 --> 00:23:45.673
governance rather than

00:23:45.733 --> 00:23:46.893
saying decisions shall be

00:23:46.933 --> 00:23:48.214
made in a meeting and the

00:23:48.254 --> 00:23:49.175
meeting shall be called at

00:23:49.215 --> 00:23:50.475
least seven days in advance

00:23:50.575 --> 00:23:51.896
and shall take place either

00:23:51.996 --> 00:23:53.357
online or at our office.

00:23:53.657 --> 00:23:55.458
And or a decision can be

00:23:55.498 --> 00:23:56.559
made in lieu of a meeting

00:23:56.639 --> 00:23:57.959
by email if the following

00:23:57.979 --> 00:23:58.640
conditions are met.

00:23:58.680 --> 00:23:58.820
Right.

00:23:59.060 --> 00:23:59.660
Those are the kinds of

00:23:59.700 --> 00:24:00.461
things you'd find in a

00:24:00.501 --> 00:24:01.961
traditional bylaws or

00:24:02.041 --> 00:24:02.802
operating agreement.

00:24:03.202 --> 00:24:05.363
Now with the DAO LLC, you can say, oh,

00:24:05.403 --> 00:24:07.465
decisions are made by

00:24:07.625 --> 00:24:08.625
following the process

00:24:08.665 --> 00:24:10.006
contained in the governance

00:24:10.026 --> 00:24:11.087
smart contract on this

00:24:11.127 --> 00:24:12.227
blockchain at this address.

00:24:12.607 --> 00:24:13.508
Or you can reference

00:24:13.648 --> 00:24:15.649
Snapshot if you use Snapshot, right?

00:24:15.729 --> 00:24:18.551
Or any kind of cryptographic

00:24:18.851 --> 00:24:19.772
governance protocol.

00:24:20.812 --> 00:24:22.533
So that operating agreement

00:24:22.653 --> 00:24:23.514
is really important.

00:24:23.754 --> 00:24:24.674
The new template, I think,

00:24:24.694 --> 00:24:26.195
really helps people think through...

00:24:27.616 --> 00:24:28.777
what they might want to put in there.

00:24:28.897 --> 00:24:30.879
I should remind people, you know, my DAO,

00:24:30.919 --> 00:24:32.141
we're not lawyers and

00:24:32.281 --> 00:24:34.383
nothing that we provide is legal advice.

00:24:34.423 --> 00:24:35.204
Now we've worked with

00:24:35.284 --> 00:24:36.685
leading lawyers from around the world,

00:24:37.046 --> 00:24:37.746
including someone,

00:24:37.826 --> 00:24:38.747
many of you are probably

00:24:38.767 --> 00:24:40.289
familiar with Tatiana Cerullo,

00:24:40.329 --> 00:24:41.490
who's a leading Marshall

00:24:41.550 --> 00:24:42.531
Islands DAO lawyer,

00:24:43.232 --> 00:24:44.413
has especially helped us

00:24:44.473 --> 00:24:46.175
with a lot of our work, including,

00:24:46.875 --> 00:24:47.515
this template.

00:24:48.195 --> 00:24:48.975
But there's input from

00:24:49.015 --> 00:24:50.016
lawyers all over the world,

00:24:50.096 --> 00:24:51.516
but every case is different, right?

00:24:51.556 --> 00:24:52.256
And that's why it's

00:24:52.296 --> 00:24:53.396
important to hire a lawyer

00:24:54.356 --> 00:24:56.037
if you can't afford one or

00:24:56.077 --> 00:24:56.637
if there's anything

00:24:56.677 --> 00:24:57.777
complicated about figuring

00:24:57.817 --> 00:24:58.757
out your operating agreement.

00:24:59.077 --> 00:25:00.197
So disclaimer aside,

00:25:00.217 --> 00:25:00.737
so you've got your

00:25:00.777 --> 00:25:01.798
certificate of formation

00:25:01.858 --> 00:25:02.898
and your operating agreement.

00:25:03.378 --> 00:25:06.338
Now, the next thing is these other forms.

00:25:07.079 --> 00:25:08.359
So there's something called

00:25:08.379 --> 00:25:09.979
a foreign investment business license,

00:25:10.039 --> 00:25:11.699
which is required of all DAOs.

00:25:11.839 --> 00:25:13.780
It's an old-fashioned

00:25:13.820 --> 00:25:15.240
concept in Marshall Islands law.

00:25:15.600 --> 00:25:16.540
that we've carried over to

00:25:16.560 --> 00:25:17.360
the world of DAOs.

00:25:17.701 --> 00:25:18.861
But now for the first time,

00:25:19.041 --> 00:25:21.161
DAOs have their own form

00:25:21.341 --> 00:25:22.202
and their own set of

00:25:22.242 --> 00:25:23.102
requirements for the

00:25:23.142 --> 00:25:24.542
Foreign Investment Business License.

00:25:24.562 --> 00:25:26.442
We call it FIBL for short.

00:25:27.083 --> 00:25:28.323
And so you can see that form

00:25:28.623 --> 00:25:30.523
in the new regulation.

00:25:31.284 --> 00:25:33.684
And part of that form says, also,

00:25:33.744 --> 00:25:34.684
please attach your

00:25:34.724 --> 00:25:35.484
Beneficial Owner

00:25:35.544 --> 00:25:37.485
Information Report or BOIR.

00:25:38.045 --> 00:25:39.045
The BOIR form,

00:25:39.085 --> 00:25:40.005
which you can also find

00:25:40.125 --> 00:25:41.466
towards the end of the regulation,

00:25:41.886 --> 00:25:43.026
that's the form that

00:25:43.086 --> 00:25:44.586
captures the people who are

00:25:44.626 --> 00:25:46.607
effectively quote unquote doing KYC,

00:25:46.887 --> 00:25:47.027
right?

00:25:47.067 --> 00:25:48.807
That's the form where we put all that.

00:25:50.127 --> 00:25:51.007
The applicant puts

00:25:51.127 --> 00:25:52.128
information about those

00:25:52.268 --> 00:25:53.628
beneficial owners or other

00:25:53.648 --> 00:25:54.788
people that need to be listed.

00:25:56.168 --> 00:25:57.409
And then that information

00:25:57.449 --> 00:26:00.169
gets verified by us using a

00:26:00.209 --> 00:26:01.950
third party KYC tool and by

00:26:01.970 --> 00:26:02.970
the government through

00:26:02.990 --> 00:26:04.190
their own research.

00:26:05.610 --> 00:26:07.110
So am I forgetting anything, Leo,

00:26:07.211 --> 00:26:08.411
or are those the four

00:26:08.491 --> 00:26:09.651
documents that people have

00:26:09.691 --> 00:26:11.471
to submit during their registration?

00:26:12.191 --> 00:26:12.351
Yep.

00:26:12.491 --> 00:26:12.632
Yep.

00:26:12.732 --> 00:26:13.172
I think you,

00:26:13.592 --> 00:26:14.772
you touched on everything there.

00:26:14.932 --> 00:26:16.172
And I think also an

00:26:16.472 --> 00:26:18.373
important part is the

00:26:18.413 --> 00:26:19.233
reason that we're so

00:26:19.273 --> 00:26:20.233
excited about the operating

00:26:20.253 --> 00:26:21.633
agreement and certificate of formation,

00:26:22.093 --> 00:26:23.293
having those smart

00:26:23.333 --> 00:26:24.854
contracts listed is it kind

00:26:24.874 --> 00:26:26.054
of goes back to the origin

00:26:26.094 --> 00:26:27.254
story that you talked about, right?

00:26:27.294 --> 00:26:28.214
Where you're trying to

00:26:28.254 --> 00:26:29.315
mirror what you're doing on

00:26:29.375 --> 00:26:30.935
chain with what you're doing and

00:26:32.018 --> 00:26:32.678
off-chain, right,

00:26:32.878 --> 00:26:34.399
and when you establish your legal entity.

00:26:34.439 --> 00:26:36.060
And so the ability to

00:26:36.120 --> 00:26:38.021
recognize something in your

00:26:38.061 --> 00:26:39.401
DAO also in your legal

00:26:39.461 --> 00:26:41.342
entity is really unique and

00:26:41.482 --> 00:26:42.723
is kind of what gets me

00:26:42.763 --> 00:26:43.963
excited and us excited

00:26:43.983 --> 00:26:47.004
about our legal entity and

00:26:47.044 --> 00:26:48.285
the Marshall Islands DAO LLC.

00:26:49.409 --> 00:26:50.810
But I think there's another part of it,

00:26:50.930 --> 00:26:51.130
Adam,

00:26:51.170 --> 00:26:53.652
where you can also create a fairly

00:26:53.692 --> 00:26:54.912
simple DAO LLC,

00:26:55.273 --> 00:26:56.053
and maybe you don't want to

00:26:56.093 --> 00:26:57.054
reference things on chain.

00:26:57.454 --> 00:26:58.995
And that's also possible.

00:26:59.675 --> 00:27:02.017
And I think maybe not a lot

00:27:02.037 --> 00:27:02.957
of our clients know that,

00:27:03.117 --> 00:27:04.218
or some of our clients

00:27:04.578 --> 00:27:05.539
think that you need to be a

00:27:05.579 --> 00:27:08.140
DAO to set up a DAO LLC.

00:27:08.540 --> 00:27:09.361
And that's not the case.

00:27:09.401 --> 00:27:10.782
Some of our clients look

00:27:10.822 --> 00:27:13.223
very similar to a traditional LLC.

00:27:14.364 --> 00:27:14.924
But did you have any

00:27:14.944 --> 00:27:15.865
thoughts on that point?

00:27:15.985 --> 00:27:17.445
And maybe want to clarify

00:27:17.465 --> 00:27:18.286
anything there as well?

00:27:19.225 --> 00:27:19.945
Yeah, it's a good point.

00:27:20.025 --> 00:27:20.946
So look, first of all,

00:27:21.006 --> 00:27:23.107
the Dow LLC is an LLC.

00:27:24.568 --> 00:27:26.009
It's governed by the LLC

00:27:26.029 --> 00:27:27.150
laws of the Marshall Islands,

00:27:27.230 --> 00:27:28.050
except where they're in

00:27:28.090 --> 00:27:29.911
conflict with the Dow LLC laws.

00:27:31.472 --> 00:27:32.833
And that's really beneficial

00:27:32.893 --> 00:27:34.294
because that way you can go

00:27:34.354 --> 00:27:35.555
anywhere in the world and

00:27:35.675 --> 00:27:37.035
everyone can recognize, oh,

00:27:37.115 --> 00:27:39.237
I'm looking at an LLC and it is an LLC.

00:27:39.837 --> 00:27:40.797
The difference is that you

00:27:40.817 --> 00:27:42.238
put a couple of sentences

00:27:42.378 --> 00:27:43.198
in your certificate of

00:27:43.238 --> 00:27:44.098
formation and your

00:27:44.178 --> 00:27:45.439
operating agreement that

00:27:45.459 --> 00:27:47.699
basically say this is a DAO LLC,

00:27:47.759 --> 00:27:49.900
not a regular LLC in different words.

00:27:51.180 --> 00:27:52.441
And that makes you subject

00:27:52.481 --> 00:27:55.002
to the new DAO Act law that

00:27:55.042 --> 00:27:56.262
we've written as amended,

00:27:56.882 --> 00:27:58.323
as well as the new regulation,

00:27:58.703 --> 00:28:00.123
which gives you new capabilities.

00:28:00.883 --> 00:28:01.944
And so, for example,

00:28:02.104 --> 00:28:03.544
a regular LLC does have to

00:28:03.584 --> 00:28:04.444
have managing members.

00:28:04.645 --> 00:28:05.745
A DAO LLC does not.

00:28:06.285 --> 00:28:07.765
A regular LLC has to know

00:28:07.805 --> 00:28:09.206
the names and addresses of

00:28:09.266 --> 00:28:10.026
all of its members.

00:28:10.226 --> 00:28:12.366
A DAO LLC does not.

00:28:13.527 --> 00:28:16.648
And so you're kind of

00:28:16.668 --> 00:28:18.948
getting the benefit of being an LLC,

00:28:19.788 --> 00:28:20.749
but also getting the

00:28:20.789 --> 00:28:22.849
benefit of all of the laws

00:28:22.889 --> 00:28:23.709
and regulations that we've

00:28:23.729 --> 00:28:24.829
written that allow you to

00:28:24.930 --> 00:28:26.030
truly wrap your DAO.

00:28:26.070 --> 00:28:26.810
So yeah, to your point,

00:28:26.850 --> 00:28:28.890
going back to the origin story of my DAO,

00:28:29.351 --> 00:28:30.871
we want to allow a DAO

00:28:31.651 --> 00:28:33.833
or anyone who can get the

00:28:33.873 --> 00:28:35.795
benefits from these kind of

00:28:35.875 --> 00:28:36.555
unique treatment.

00:28:37.696 --> 00:28:38.957
Or even if you don't want to

00:28:39.057 --> 00:28:40.018
use the benefits today,

00:28:40.058 --> 00:28:41.399
but maybe you like the idea

00:28:41.419 --> 00:28:43.040
of potentially using them in the future.

00:28:43.781 --> 00:28:45.042
Or maybe there's a tax

00:28:45.082 --> 00:28:46.563
benefit to using this entity.

00:28:47.243 --> 00:28:49.425
Maybe you're just five

00:28:49.505 --> 00:28:51.206
people making investments

00:28:51.246 --> 00:28:52.687
together and you need a

00:28:52.748 --> 00:28:53.808
legal entity that's going

00:28:53.828 --> 00:28:55.169
to allow you to do some

00:28:55.189 --> 00:28:57.131
activity on-chain rather than off-chain.

00:28:57.511 --> 00:28:58.251
Or you want to be in a

00:28:58.291 --> 00:28:59.472
jurisdiction that is

00:28:59.872 --> 00:29:02.212
friendly to Web3 and crypto in general.

00:29:02.772 --> 00:29:03.713
Maybe it has nothing to do

00:29:03.753 --> 00:29:05.013
with your corporate structure.

00:29:05.093 --> 00:29:06.773
Maybe you want access to the

00:29:06.813 --> 00:29:07.974
Marshall Islands regulatory

00:29:07.994 --> 00:29:08.854
environment where you're

00:29:08.874 --> 00:29:10.854
allowed to have a governance token.

00:29:11.274 --> 00:29:12.115
You can have a security

00:29:12.155 --> 00:29:13.075
token if you want to.

00:29:14.255 --> 00:29:16.116
You can do almost anything

00:29:16.236 --> 00:29:17.416
you want with tokens aside

00:29:17.476 --> 00:29:18.996
from there's some things

00:29:19.036 --> 00:29:19.977
that are still restricted,

00:29:20.017 --> 00:29:21.377
which is you can't be basically a bank.

00:29:21.797 --> 00:29:23.057
or a centralized exchange

00:29:23.177 --> 00:29:24.858
and be a DAO LLC or any

00:29:24.898 --> 00:29:25.918
kind of legal entity in the

00:29:25.958 --> 00:29:26.578
Marshall Islands.

00:29:27.379 --> 00:29:29.399
You can create a

00:29:29.439 --> 00:29:30.619
decentralized protocol of

00:29:30.699 --> 00:29:32.860
any kind that does DeFi and

00:29:33.280 --> 00:29:34.300
other types of finance,

00:29:34.340 --> 00:29:36.041
but you cannot be a

00:29:36.381 --> 00:29:38.281
centralized financial service provider.

00:29:39.182 --> 00:29:39.962
And so there could be a lot

00:29:39.982 --> 00:29:40.782
of situations where you

00:29:40.822 --> 00:29:41.702
want to get access to that

00:29:41.762 --> 00:29:42.763
environment and maybe you

00:29:42.783 --> 00:29:44.463
want to structure like a regular LLC,

00:29:44.583 --> 00:29:46.003
but you want access to that environment.

00:29:46.044 --> 00:29:46.944
So I think we're still

00:29:46.984 --> 00:29:48.064
learning all the ways that

00:29:48.084 --> 00:29:48.844
people are going to want to

00:29:49.024 --> 00:29:50.225
use the DAO LLC.

00:29:50.565 --> 00:29:51.365
But to your point,

00:29:51.825 --> 00:29:53.346
you don't have to be a DAO

00:29:53.386 --> 00:29:54.728
in the traditional sense of the word.

00:29:54.808 --> 00:29:55.128
In fact,

00:29:55.148 --> 00:29:56.049
I think one of the interesting

00:29:56.089 --> 00:29:57.290
things about the term DAO

00:29:57.450 --> 00:29:58.190
is that people still

00:29:58.230 --> 00:29:59.291
disagree on what it means.

00:29:59.732 --> 00:30:00.532
And usually they're not

00:30:00.632 --> 00:30:02.514
using it as a legal term, right?

00:30:02.934 --> 00:30:04.135
They're referring to this

00:30:04.275 --> 00:30:06.557
new type of community oriented,

00:30:06.677 --> 00:30:08.559
often community oriented organization,

00:30:08.699 --> 00:30:09.700
often nonprofit,

00:30:09.840 --> 00:30:11.141
often governing a protocol,

00:30:11.401 --> 00:30:13.223
but not always doing any of those things.

00:30:14.244 --> 00:30:16.125
And so, you know, for example,

00:30:16.185 --> 00:30:18.047
you could run your organization,

00:30:18.507 --> 00:30:19.148
like a traditional

00:30:19.188 --> 00:30:21.290
corporation if you want to, have a CEO,

00:30:21.350 --> 00:30:22.472
have a management team,

00:30:22.892 --> 00:30:25.495
have all the policies, have HR, right?

00:30:25.916 --> 00:30:27.938
Just look totally like a normal company.

00:30:28.298 --> 00:30:30.321
Maybe you still want to create a DAO LLC,

00:30:30.761 --> 00:30:31.282
whether you think of

00:30:31.322 --> 00:30:33.104
yourself as a DAO or not, right?

00:30:33.544 --> 00:30:34.325
So yeah, to your point,

00:30:34.345 --> 00:30:34.825
there is a lot of

00:30:34.865 --> 00:30:37.367
flexibility in terms of how

00:30:37.427 --> 00:30:38.748
you want to use this entity.

00:30:39.328 --> 00:30:40.750
And I do think, look, if someone says,

00:30:40.770 --> 00:30:41.890
well, I don't like the term DAO,

00:30:42.411 --> 00:30:42.951
that's okay.

00:30:42.971 --> 00:30:43.171
I mean,

00:30:43.191 --> 00:30:44.432
it has to go in your legal

00:30:44.472 --> 00:30:45.593
documents only.

00:30:46.674 --> 00:30:48.155
If you want to form a DAO LLC,

00:30:48.255 --> 00:30:49.216
it's kind of like being

00:30:49.676 --> 00:30:50.717
like a corporation.

00:30:51.177 --> 00:30:52.959
You might not like the word corporation,

00:30:53.359 --> 00:30:54.179
but if that's the right

00:30:54.219 --> 00:30:55.080
legal form for you,

00:30:55.360 --> 00:30:56.581
that's the right legal form for you.

00:30:56.621 --> 00:30:57.282
And you don't have to use

00:30:57.302 --> 00:30:58.242
the word corporation, right?

00:30:58.262 --> 00:30:59.143
You could just call yourself

00:30:59.363 --> 00:31:01.545
Microsoft and not Microsoft Corporation.

00:31:01.565 --> 00:31:01.685
Yeah.

00:31:03.307 --> 00:31:03.467
Yeah,

00:31:03.487 --> 00:31:04.809
the goal is one day that everyone

00:31:04.829 --> 00:31:06.551
will be using a DAO LLC,

00:31:06.591 --> 00:31:07.753
whether they're involved in

00:31:07.773 --> 00:31:08.414
crypto or not.

00:31:08.893 --> 00:31:10.814
And hopefully that happens

00:31:10.834 --> 00:31:11.775
sooner rather than later.

00:31:12.976 --> 00:31:14.457
But yeah, that's- I wouldn't say that,

00:31:14.497 --> 00:31:14.797
Leo.

00:31:15.278 --> 00:31:17.059
I think there's a really

00:31:17.139 --> 00:31:19.100
good use case for lots of

00:31:19.180 --> 00:31:20.862
legal entities all over.

00:31:21.162 --> 00:31:22.203
And there's also reasons why

00:31:22.223 --> 00:31:22.823
you might pick one

00:31:22.863 --> 00:31:23.884
jurisdiction over another.

00:31:24.344 --> 00:31:25.525
So the Marshall Islands is

00:31:25.545 --> 00:31:26.506
gonna be the right place

00:31:26.606 --> 00:31:28.347
for a lot of projects, but not all.

00:31:28.827 --> 00:31:30.088
DAO LLCs are gonna be the

00:31:30.128 --> 00:31:32.490
right fit for some projects, but not all.

00:31:32.890 --> 00:31:33.631
So I don't,

00:31:33.731 --> 00:31:34.992
it's not the goal that

00:31:35.032 --> 00:31:36.433
everyone's gonna use a DAO LLC.

00:31:37.253 --> 00:31:38.613
So it's just a goal that

00:31:38.693 --> 00:31:40.814
it's made available to, you know,

00:31:40.834 --> 00:31:41.854
the people that are in the

00:31:41.894 --> 00:31:43.435
circumstances where it's the right fit.

00:31:44.075 --> 00:31:44.455
Gotcha.

00:31:44.515 --> 00:31:44.855
Gotcha.

00:31:44.935 --> 00:31:45.355
Not the goal,

00:31:45.395 --> 00:31:46.175
but it wouldn't also it

00:31:46.195 --> 00:31:47.476
wouldn't be bad for business, would it?

00:31:48.376 --> 00:31:48.876
That's true.

00:31:49.796 --> 00:31:50.097
Awesome.

00:31:50.437 --> 00:31:51.617
Awesome.

00:31:51.737 --> 00:31:52.297
So, yeah,

00:31:52.317 --> 00:31:54.018
I think I think we touched on I mean,

00:31:54.038 --> 00:31:55.458
I can provide a quick summary,

00:31:55.498 --> 00:31:56.698
but but I think we touched

00:31:56.778 --> 00:31:58.139
on the registration process

00:31:58.499 --> 00:31:59.519
and we will link the

00:31:59.559 --> 00:32:00.479
regulation in the show

00:32:00.519 --> 00:32:02.780
notes so people can review it.

00:32:03.458 --> 00:32:04.699
And like Adam mentioned,

00:32:04.799 --> 00:32:05.599
we have the arrows,

00:32:05.760 --> 00:32:07.180
we have like an onboarding portal, right?

00:32:07.501 --> 00:32:09.282
And it's really simple once

00:32:09.362 --> 00:32:10.582
you start the registration

00:32:10.622 --> 00:32:12.123
process to see in what

00:32:12.183 --> 00:32:13.504
order do I need to complete these steps?

00:32:14.065 --> 00:32:15.205
What forms do I need to fill out?

00:32:15.666 --> 00:32:16.506
And so while it may be

00:32:16.586 --> 00:32:17.367
overwhelming when you're

00:32:17.387 --> 00:32:19.128
listening to us talk about it,

00:32:19.508 --> 00:32:20.428
once it's in front of you,

00:32:20.528 --> 00:32:21.529
it's pretty simple and

00:32:21.569 --> 00:32:24.131
fairly easy to operate.

00:32:24.871 --> 00:32:26.592
So I think we should also

00:32:26.632 --> 00:32:28.573
touch on current customers, right?

00:32:29.054 --> 00:32:29.914
Hopefully some current

00:32:29.934 --> 00:32:31.195
customers are listening to

00:32:31.275 --> 00:32:32.876
this podcast or live stream.

00:32:33.409 --> 00:32:34.213
What do they need to know

00:32:34.233 --> 00:32:35.017
about the regulation?

00:32:35.097 --> 00:32:36.604
How does that impact them, Adam?

00:32:38.563 --> 00:32:38.783
Yeah,

00:32:38.843 --> 00:32:40.803
so maybe a little bit less because a

00:32:40.843 --> 00:32:41.904
lot of the regulation has

00:32:41.944 --> 00:32:43.904
to do with the application process.

00:32:44.544 --> 00:32:45.624
But the difference is there

00:32:45.704 --> 00:32:49.045
is a annual filing that

00:32:49.085 --> 00:32:50.926
DAOs need to complete.

00:32:52.326 --> 00:32:54.666
And this regulation includes

00:32:54.706 --> 00:32:56.067
that new annual filing form.

00:32:56.527 --> 00:32:57.507
And so if people want to

00:32:57.547 --> 00:32:58.327
know what you're going to

00:32:58.347 --> 00:33:00.207
have to fill out and submit in January,

00:33:00.267 --> 00:33:01.228
because we do all of our

00:33:01.288 --> 00:33:02.488
annual filings and annual

00:33:02.548 --> 00:33:04.348
fees in January in the Marshall Islands,

00:33:04.908 --> 00:33:05.648
you can go look at the

00:33:05.668 --> 00:33:06.849
regulation and look at that

00:33:06.929 --> 00:33:07.789
annual filing form.

00:33:08.449 --> 00:33:09.710
And one thing you'll see is

00:33:09.750 --> 00:33:10.851
that you have to attach the

00:33:10.891 --> 00:33:11.671
Beneficial Owner

00:33:11.711 --> 00:33:12.872
Information Report or the

00:33:12.912 --> 00:33:15.134
BOIR to your annual filing form.

00:33:15.654 --> 00:33:17.395
And so it's the same KYC

00:33:17.435 --> 00:33:18.816
requirements now that apply

00:33:18.916 --> 00:33:20.698
to new applicants,

00:33:21.198 --> 00:33:23.520
apply to existing DOW LLCs,

00:33:24.240 --> 00:33:25.381
even if it was different before.

00:33:25.721 --> 00:33:27.042
So, by the way, generally,

00:33:27.202 --> 00:33:28.283
these requirements are a

00:33:28.323 --> 00:33:29.664
little bit less stringent

00:33:29.704 --> 00:33:30.965
than what existed before.

00:33:31.025 --> 00:33:34.147
So, for example, for many of our Dow LLCs,

00:33:34.548 --> 00:33:34.988
and by the way,

00:33:35.008 --> 00:33:35.688
these requirements have

00:33:35.768 --> 00:33:37.229
changed over time because

00:33:37.269 --> 00:33:38.390
it wasn't clear from the

00:33:38.450 --> 00:33:41.032
law exactly who should have to do KYC.

00:33:41.433 --> 00:33:43.514
And so at certain points in time,

00:33:43.914 --> 00:33:44.975
and I'm not even just

00:33:44.995 --> 00:33:45.916
talking about the Dow Act,

00:33:45.976 --> 00:33:46.796
but it turned out when you

00:33:46.836 --> 00:33:49.158
combine the Dow Act, the LLC Act,

00:33:49.178 --> 00:33:50.459
the Business Corporations Act,

00:33:50.519 --> 00:33:51.560
the Banking Acts Act,

00:33:51.860 --> 00:33:53.001
you know other regulations

00:33:53.021 --> 00:33:53.701
that have been passed in

00:33:53.721 --> 00:33:55.062
the marshall islands there

00:33:55.102 --> 00:33:55.902
was room for a lot of

00:33:55.942 --> 00:33:57.163
subjectivity around well

00:33:57.183 --> 00:33:58.543
who should have to do kyc

00:33:58.884 --> 00:34:01.465
so at times all been all 25

00:34:01.465 --> 00:34:03.186
plus voting rights holders

00:34:03.546 --> 00:34:05.947
and all managers if and if

00:34:05.987 --> 00:34:07.148
there are were any managers

00:34:07.188 --> 00:34:08.708
had to do kyc now it's just

00:34:08.748 --> 00:34:10.549
beneficial owners 25 plus

00:34:10.849 --> 00:34:11.850
or if there are none then

00:34:11.890 --> 00:34:13.651
all managers have to do it um

00:34:14.271 --> 00:34:15.411
We always had the minimum of

00:34:15.551 --> 00:34:17.152
one person when when no one

00:34:17.212 --> 00:34:18.872
fell into either of those two categories.

00:34:18.952 --> 00:34:20.093
But I think that's that's

00:34:20.133 --> 00:34:22.273
the key for existing LLCs

00:34:22.534 --> 00:34:24.654
is to now you can see what

00:34:24.674 --> 00:34:25.154
you're going to have to

00:34:25.194 --> 00:34:27.675
fill out in January and

00:34:27.695 --> 00:34:28.735
it's not going to change

00:34:28.876 --> 00:34:30.736
until the next law or

00:34:30.756 --> 00:34:31.756
regulation gets passed.

00:34:31.776 --> 00:34:32.517
So you can have some

00:34:33.057 --> 00:34:36.418
consistency and knowing what to expect.

00:34:37.618 --> 00:34:38.939
Yeah, so like at a high level,

00:34:39.239 --> 00:34:40.359
we're trying to simplify

00:34:40.379 --> 00:34:41.899
things for our current

00:34:41.920 --> 00:34:43.360
clients and our future clients.

00:34:43.870 --> 00:34:44.531
trying to create an

00:34:44.591 --> 00:34:46.712
objective standard for everyone to follow,

00:34:46.832 --> 00:34:48.474
which I think is now in place.

00:34:49.314 --> 00:34:50.355
So we're not having to

00:34:50.435 --> 00:34:52.397
reference different laws

00:34:52.437 --> 00:34:53.778
and we're unsure about things.

00:34:54.442 --> 00:34:56.363
And lastly, we're just expediting things.

00:34:56.403 --> 00:34:56.583
I mean,

00:34:56.603 --> 00:34:59.043
we talked about the technology

00:34:59.083 --> 00:35:00.444
improvements with the government earlier,

00:35:00.484 --> 00:35:01.344
but I think the three

00:35:01.404 --> 00:35:02.665
things that we're focusing

00:35:02.725 --> 00:35:04.825
on are simplification, objectivity,

00:35:05.325 --> 00:35:06.786
and then expediting the

00:35:06.826 --> 00:35:07.666
process in general.

00:35:08.146 --> 00:35:10.527
So I'm excited to see where

00:35:10.547 --> 00:35:11.547
this goes in the future.

00:35:12.928 --> 00:35:13.308
And yeah,

00:35:13.928 --> 00:35:15.508
I think we touched on everything

00:35:15.528 --> 00:35:16.449
with the process, Adam.

00:35:16.469 --> 00:35:17.629
Is there anything I might be missing?

00:35:19.393 --> 00:35:20.033
It's a good question.

00:35:20.053 --> 00:35:22.014
I mean, I would just say that, you know,

00:35:22.274 --> 00:35:24.114
every situation is still different.

00:35:24.855 --> 00:35:27.536
And, you know,

00:35:28.276 --> 00:35:30.977
what I'd recommend is folks review, again,

00:35:31.037 --> 00:35:32.057
review the regulation,

00:35:32.377 --> 00:35:33.197
read the regulation.

00:35:33.397 --> 00:35:33.837
If you have to,

00:35:33.857 --> 00:35:34.398
especially if you're a

00:35:34.418 --> 00:35:37.158
lawyer that deals with these DAO LLCs,

00:35:37.198 --> 00:35:37.939
read the regulation,

00:35:37.979 --> 00:35:39.319
let us know if you have any questions.

00:35:39.999 --> 00:35:41.740
And just also remember that we,

00:35:41.940 --> 00:35:42.780
my DAO is always here to

00:35:42.840 --> 00:35:44.221
help people through the process.

00:35:44.621 --> 00:35:45.761
So as you're going through

00:35:45.801 --> 00:35:47.122
your onboarding portal, you know,

00:35:47.162 --> 00:35:48.402
you can always reach out and

00:35:48.842 --> 00:35:50.123
ask questions about how to

00:35:50.163 --> 00:35:52.405
fill out a certain form or, you know,

00:35:52.445 --> 00:35:53.946
whether something meets a

00:35:53.986 --> 00:35:55.667
certain requirement and we

00:35:55.687 --> 00:35:56.628
can help people out with that.

00:35:57.628 --> 00:35:57.909
Awesome.

00:35:58.229 --> 00:35:58.509
Awesome.

00:35:58.989 --> 00:35:59.210
So, yeah,

00:35:59.250 --> 00:36:02.072
I think we I think we covered the

00:36:02.092 --> 00:36:03.473
regulation pretty in depth.

00:36:04.693 --> 00:36:06.475
And I think we I'd like to

00:36:06.535 --> 00:36:07.635
just talk a little bit

00:36:08.676 --> 00:36:10.397
about some use cases we

00:36:10.417 --> 00:36:11.338
published on our website,

00:36:12.019 --> 00:36:12.899
on our blog section.

00:36:13.199 --> 00:36:13.940
You can find that at

00:36:14.340 --> 00:36:16.702
www.mito.org slash blog.

00:36:17.629 --> 00:36:19.530
But the first one I'll talk about is pith.

00:36:20.291 --> 00:36:22.112
And I think it's one of the

00:36:22.172 --> 00:36:23.412
most common use cases we

00:36:23.472 --> 00:36:24.753
see for our clients.

00:36:25.393 --> 00:36:27.194
And that is the protocol DAO.

00:36:27.955 --> 00:36:28.115
And

00:36:28.810 --> 00:36:30.951
Adam can help me out if he wants,

00:36:31.051 --> 00:36:33.232
but I often talk to a lot of DAOs,

00:36:34.033 --> 00:36:34.733
and we talked about this a

00:36:34.753 --> 00:36:36.154
little earlier in the live stream,

00:36:36.214 --> 00:36:39.095
where they have a decentralized protocol.

00:36:39.295 --> 00:36:40.696
In this case, Pith is an oracle.

00:36:41.896 --> 00:36:43.077
And basically,

00:36:43.197 --> 00:36:45.578
they are trying to operate

00:36:45.638 --> 00:36:46.839
the protocol or govern the

00:36:46.879 --> 00:36:49.260
protocol with the DAO.

00:36:49.780 --> 00:36:51.761
And the reality is that a

00:36:51.801 --> 00:36:52.821
lot of these protocols,

00:36:52.901 --> 00:36:53.722
whether they be a DEX,

00:36:54.562 --> 00:36:55.483
an Oracle,

00:36:55.923 --> 00:36:58.004
some sort of decentralized app

00:36:58.205 --> 00:37:00.686
on any blockchain doesn't

00:37:00.766 --> 00:37:01.907
need to be incorporated

00:37:01.947 --> 00:37:03.168
because they really exist

00:37:03.268 --> 00:37:04.969
as a set of smart contracts.

00:37:05.729 --> 00:37:07.230
But what does need to be incorporated,

00:37:07.430 --> 00:37:08.391
and in this case,

00:37:08.451 --> 00:37:09.832
what Pith did is they

00:37:09.872 --> 00:37:11.453
incorporated their DAO,

00:37:11.613 --> 00:37:12.794
which governed the protocol.

00:37:13.714 --> 00:37:14.495
And so I think

00:37:15.497 --> 00:37:16.238
I think with our new

00:37:16.278 --> 00:37:17.759
regulation and the

00:37:18.019 --> 00:37:19.440
precedent that Pith and

00:37:19.540 --> 00:37:21.221
other DAOs have set with us,

00:37:21.361 --> 00:37:22.682
I think the protocol DAO

00:37:23.443 --> 00:37:24.744
emerges as one of our best

00:37:24.864 --> 00:37:28.006
use cases and becomes a

00:37:28.166 --> 00:37:29.727
really good example for

00:37:30.008 --> 00:37:31.409
clients going forward in the future.

00:37:31.549 --> 00:37:32.730
And if you think you

00:37:32.850 --> 00:37:33.971
resemble Pith or if you're

00:37:33.991 --> 00:37:34.971
excited about what Pith is

00:37:35.031 --> 00:37:37.173
doing and you are a client

00:37:37.253 --> 00:37:38.454
or you are a lawyer that's

00:37:38.494 --> 00:37:39.795
working with these types of clients,

00:37:40.335 --> 00:37:41.596
I encourage you to read the

00:37:41.616 --> 00:37:42.856
blog as it's really,

00:37:43.056 --> 00:37:44.117
really in-depth and it

00:37:44.157 --> 00:37:45.037
really does a good job of

00:37:45.097 --> 00:37:48.279
explaining how Pith used us.

00:37:48.579 --> 00:37:49.900
And I just remind you that

00:37:50.100 --> 00:37:51.600
now that we have this new regulation,

00:37:51.660 --> 00:37:53.301
hopefully it will be even

00:37:53.501 --> 00:37:56.923
easier for these new DAO

00:37:57.063 --> 00:37:58.864
LLCs to incorporate and get

00:37:58.884 --> 00:37:59.944
through the process faster

00:38:00.405 --> 00:38:02.045
and in a simpler way.

00:38:03.006 --> 00:38:03.186
Adam,

00:38:03.206 --> 00:38:04.246
I think you wanted to talk about

00:38:04.346 --> 00:38:05.547
another one of our clients as well.

00:38:06.634 --> 00:38:06.874
Yeah.

00:38:06.934 --> 00:38:08.236
So, you know, and Pith, by the way,

00:38:08.316 --> 00:38:09.537
is I think the leading,

00:38:10.458 --> 00:38:12.259
if not one of the leading

00:38:12.419 --> 00:38:13.500
oracles on Solana,

00:38:13.941 --> 00:38:14.902
if anyone doesn't know.

00:38:15.682 --> 00:38:16.763
And I think one of the cool

00:38:16.803 --> 00:38:18.245
things about the DAO LLC

00:38:18.285 --> 00:38:19.666
legal entity is that it can

00:38:19.686 --> 00:38:21.047
be used for a variety of purposes.

00:38:21.107 --> 00:38:22.409
So in the Pith case,

00:38:22.809 --> 00:38:24.310
the DAO is governing a protocol.

00:38:25.331 --> 00:38:26.812
Let's also talk about MoonDAO,

00:38:26.992 --> 00:38:28.132
another popular DAO that

00:38:28.152 --> 00:38:28.993
people may have heard of.

00:38:29.073 --> 00:38:30.313
So MoonDAO's mission,

00:38:30.353 --> 00:38:32.614
if I'm remembering correctly or precisely,

00:38:33.154 --> 00:38:34.575
is to help colonize the

00:38:34.615 --> 00:38:36.376
moon and do so in a way

00:38:36.416 --> 00:38:37.716
that's not controlled only

00:38:37.796 --> 00:38:39.277
by giant private companies

00:38:39.337 --> 00:38:41.758
and governments, but done in a more fair,

00:38:41.998 --> 00:38:43.539
distributed, decentralized way.

00:38:44.379 --> 00:38:46.260
On the way to colonizing the moon,

00:38:46.340 --> 00:38:47.040
since that's still

00:38:47.080 --> 00:38:48.221
something that's in

00:38:48.301 --> 00:38:51.802
progress or maybe a little ways away,

00:38:52.162 --> 00:38:53.483
they've been sending people into space.

00:38:54.824 --> 00:38:56.285
and creating this amazing

00:38:56.345 --> 00:38:57.966
community of people that

00:38:58.006 --> 00:38:59.747
are interested in space travel,

00:38:59.907 --> 00:39:01.868
in the moon, in colonizing space,

00:39:02.289 --> 00:39:02.989
starting to build the

00:39:03.049 --> 00:39:04.370
infrastructure that will be

00:39:04.410 --> 00:39:05.531
required to eventually do

00:39:05.571 --> 00:39:06.412
something as massive as

00:39:06.452 --> 00:39:07.172
colonizing the moon.

00:39:07.532 --> 00:39:09.154
So this is not an on-chain protocol.

00:39:09.174 --> 00:39:10.795
Now they do a lot of cool stuff on-chain.

00:39:10.815 --> 00:39:11.395
There's all kinds of

00:39:11.415 --> 00:39:12.836
interesting on-chain stuff they're doing,

00:39:12.876 --> 00:39:13.677
like a lot of DAOs,

00:39:14.017 --> 00:39:15.418
but they're not governing a protocol.

00:39:15.758 --> 00:39:16.959
This is a project that could

00:39:17.019 --> 00:39:18.800
just as easily, well, not just as easily,

00:39:18.840 --> 00:39:20.441
but could have chosen to

00:39:20.541 --> 00:39:21.602
operate as a traditional

00:39:21.682 --> 00:39:22.563
nonprofit company.

00:39:23.003 --> 00:39:25.305
It could have been a cooperative,

00:39:25.345 --> 00:39:26.606
could have been a charity,

00:39:26.946 --> 00:39:28.548
could have been just a community.

00:39:29.268 --> 00:39:30.710
They didn't have to be a DAO

00:39:31.050 --> 00:39:31.951
because they're not

00:39:31.991 --> 00:39:33.832
governing anything on chain per se,

00:39:34.553 --> 00:39:36.194
but they're leveraging the

00:39:36.254 --> 00:39:37.976
DAO structure because it's

00:39:38.016 --> 00:39:40.738
a more compelling way of engaging people,

00:39:41.158 --> 00:39:42.559
of raising money for a cause,

00:39:42.760 --> 00:39:44.261
of coordinating around a

00:39:44.381 --> 00:39:45.502
massive shared mission.

00:39:45.982 --> 00:39:47.503
And so that's why I like to

00:39:47.584 --> 00:39:49.105
use it as an example because

00:39:49.485 --> 00:39:50.246
they're not governing an

00:39:50.286 --> 00:39:51.106
on-chain protocol.

00:39:51.126 --> 00:39:52.127
They're governing the

00:39:52.147 --> 00:39:53.508
colonization of the moon in

00:39:54.069 --> 00:39:55.010
the long run and everything

00:39:55.030 --> 00:39:56.371
that has to take place in the meantime.

00:39:56.391 --> 00:39:58.393
That's a pretty cool dichotomy.

00:39:58.433 --> 00:39:59.714
You have an Oracle that's

00:39:59.774 --> 00:40:01.355
working with large-scale

00:40:01.615 --> 00:40:02.856
financial institutions,

00:40:03.237 --> 00:40:06.059
and then you have a DAO LLC

00:40:06.079 --> 00:40:07.860
that's trying to colonize the moon.

00:40:08.000 --> 00:40:10.523
And so you have a complete

00:40:10.783 --> 00:40:11.724
different use cases,

00:40:11.764 --> 00:40:14.126
but equally awesome and equally cool.

00:40:15.046 --> 00:40:15.907
And I think the third one

00:40:15.927 --> 00:40:18.089
that I'll talk about is probably the most

00:40:19.182 --> 00:40:19.923
out there from an

00:40:20.063 --> 00:40:21.784
organizational standpoint.

00:40:22.664 --> 00:40:24.566
It's using something we call Futarki,

00:40:25.346 --> 00:40:28.628
which is basically a organization,

00:40:28.928 --> 00:40:29.549
or in this case,

00:40:29.569 --> 00:40:30.890
a DAO that's completely

00:40:30.950 --> 00:40:32.070
governed by markets.

00:40:33.471 --> 00:40:35.272
And it's just as confusing as it sounds.

00:40:35.592 --> 00:40:36.953
So I encourage you to check them out.

00:40:36.993 --> 00:40:37.954
They're called MetaDAO.

00:40:39.135 --> 00:40:41.856
And they're probably, in my estimation,

00:40:41.876 --> 00:40:44.398
or my perspective, the most decentralized,

00:40:44.978 --> 00:40:45.539
autonomous,

00:40:46.651 --> 00:40:47.772
DAO that we've incorporated.

00:40:47.952 --> 00:40:49.453
And I know all DAOs are

00:40:49.473 --> 00:40:50.854
decentralized or autonomous,

00:40:50.914 --> 00:40:52.095
or as Adam mentioned earlier,

00:40:52.375 --> 00:40:53.295
people can't even agree

00:40:53.656 --> 00:40:54.917
what the word means.

00:40:55.517 --> 00:40:57.058
But in the traditional sense of the word,

00:40:57.218 --> 00:40:58.819
MetaDAO is really as close

00:40:58.859 --> 00:41:01.161
as you can get to the ideal

00:41:01.241 --> 00:41:02.081
standard of a DAO.

00:41:02.742 --> 00:41:04.843
And they found our DAO LLC

00:41:04.883 --> 00:41:05.704
to be a really good

00:41:05.744 --> 00:41:06.865
solution for them as they

00:41:06.885 --> 00:41:09.466
were able to do things like

00:41:09.846 --> 00:41:10.927
mention their governance

00:41:10.967 --> 00:41:11.948
smart contract in their

00:41:12.028 --> 00:41:13.289
operating agreement or

00:41:13.349 --> 00:41:14.790
mention their governance

00:41:14.830 --> 00:41:16.391
token in their operating agreement.

00:41:17.372 --> 00:41:19.053
and define membership in

00:41:19.093 --> 00:41:20.194
that decentralized manner.

00:41:20.895 --> 00:41:22.917
And so MetaDAO is probably

00:41:23.277 --> 00:41:24.958
the DAO most excited about today.

00:41:25.319 --> 00:41:26.180
I encourage everyone to

00:41:26.220 --> 00:41:27.741
check out all of these DAOs.

00:41:28.341 --> 00:41:29.242
They're all doing really,

00:41:29.282 --> 00:41:30.043
really cool things,

00:41:30.143 --> 00:41:31.925
and they're all using the DAO LLC.

00:41:32.585 --> 00:41:33.726
And the last reminder is if

00:41:33.746 --> 00:41:34.507
you want to check it out,

00:41:34.847 --> 00:41:36.749
any of these DAOs out or do more research,

00:41:36.789 --> 00:41:39.271
they're all available as blogs.

00:41:40.152 --> 00:41:41.213
We have customer spotlights

00:41:41.253 --> 00:41:43.295
of all of them as blogs on our website.

00:41:44.097 --> 00:41:46.699
And let me also just touch

00:41:46.759 --> 00:41:47.740
on the meta DAO case

00:41:47.780 --> 00:41:49.521
because I think what it highlights,

00:41:49.861 --> 00:41:50.822
what all these cases in

00:41:51.002 --> 00:41:52.043
conjunction highlight is

00:41:52.123 --> 00:41:53.384
you can do almost anything

00:41:53.424 --> 00:41:54.785
you can imagine with a DAO

00:41:54.905 --> 00:41:56.586
LLC in terms of how your

00:41:56.626 --> 00:41:58.388
DAO is organized and structured,

00:41:58.408 --> 00:41:59.929
its business purpose, et cetera.

00:42:00.549 --> 00:42:02.030
And you're really limited

00:42:02.130 --> 00:42:03.371
only by what you can put in

00:42:03.471 --> 00:42:06.193
code or in English, which is anything,

00:42:06.794 --> 00:42:07.034
right?

00:42:07.674 --> 00:42:07.875
Again,

00:42:07.895 --> 00:42:09.075
as long as you don't go against like

00:42:09.135 --> 00:42:11.497
the specific things that are not allowed,

00:42:11.577 --> 00:42:11.797
right?

00:42:11.837 --> 00:42:12.218
And if you're...

00:42:12.618 --> 00:42:13.719
You know, we could talk about again,

00:42:13.759 --> 00:42:14.920
like centralized exchanges

00:42:14.980 --> 00:42:16.782
and banks one day may be

00:42:16.902 --> 00:42:18.124
actually licensable in the

00:42:18.144 --> 00:42:18.845
Marshall Islands.

00:42:19.705 --> 00:42:21.187
But in terms of your governance structure,

00:42:21.267 --> 00:42:21.407
right,

00:42:21.447 --> 00:42:23.089
you could create even like Leo's

00:42:23.109 --> 00:42:25.071
describing a market that

00:42:25.151 --> 00:42:25.992
ends up leading to

00:42:26.072 --> 00:42:27.213
governance decisions that

00:42:27.313 --> 00:42:29.556
are that are enforceable

00:42:30.176 --> 00:42:33.280
and valid for your company, for your LLC,

00:42:33.340 --> 00:42:34.341
for your legal entity.

00:42:34.921 --> 00:42:35.741
Such that if you end up in

00:42:35.781 --> 00:42:37.182
court or if some other

00:42:37.242 --> 00:42:39.283
organization or a member wants to know,

00:42:39.743 --> 00:42:40.663
what was the official

00:42:40.703 --> 00:42:42.104
corporate decision on this matter?

00:42:42.644 --> 00:42:43.845
In a traditional corporation,

00:42:44.025 --> 00:42:44.965
you got to ask the CEO.

00:42:45.465 --> 00:42:46.606
And if CEO can't decide,

00:42:46.626 --> 00:42:47.426
you got to ask the board.

00:42:47.986 --> 00:42:49.887
In Futarki with the DAO LLC,

00:42:50.047 --> 00:42:51.848
you look at the result of

00:42:51.928 --> 00:42:53.188
the market mechanism.

00:42:53.548 --> 00:42:55.149
That is the company's decision.

00:42:55.509 --> 00:42:56.489
That is the final

00:42:56.589 --> 00:42:57.890
enforceable legal decision.

00:42:58.290 --> 00:42:59.290
And so that's really never

00:42:59.351 --> 00:43:00.291
been possible before.

00:43:00.311 --> 00:43:03.952
And I mean, also compare it to, you know,

00:43:04.053 --> 00:43:04.973
it reminds me of like,

00:43:05.253 --> 00:43:06.213
we often compare it to the

00:43:06.253 --> 00:43:07.854
foundation structure, right?

00:43:07.914 --> 00:43:08.694
In a foundation,

00:43:08.715 --> 00:43:09.855
because a lot of DAOs still

00:43:09.935 --> 00:43:10.795
use foundations, right?

00:43:10.835 --> 00:43:12.356
We still see a lot of people doing that.

00:43:12.816 --> 00:43:14.317
A lot of projects use foundations.

00:43:14.397 --> 00:43:16.418
In a foundation, a board is in charge.

00:43:16.998 --> 00:43:17.198
Right.

00:43:17.438 --> 00:43:19.139
And sometimes you say, well, OK, well,

00:43:19.159 --> 00:43:19.880
we're going to have the

00:43:19.940 --> 00:43:21.841
board sign a contract

00:43:21.901 --> 00:43:23.402
saying that most of the

00:43:23.442 --> 00:43:24.562
time they're going to act

00:43:24.622 --> 00:43:25.643
in accordance with the

00:43:25.743 --> 00:43:27.004
wishes of the token holders.

00:43:27.324 --> 00:43:28.284
Or if it's a few Turkey,

00:43:28.304 --> 00:43:29.085
you could say with the

00:43:29.125 --> 00:43:30.706
wishes of the market outcome.

00:43:31.486 --> 00:43:33.267
But that person or persons

00:43:33.427 --> 00:43:34.948
on the board always has the

00:43:35.048 --> 00:43:36.409
right to decide, well,

00:43:36.489 --> 00:43:37.790
it would be illegal for me

00:43:37.930 --> 00:43:39.310
to take this action that

00:43:39.330 --> 00:43:40.011
the doubt voted on.

00:43:40.471 --> 00:43:42.493
or unethical for me to take this decision.

00:43:42.873 --> 00:43:45.035
Or we, for some reason, we're deciding,

00:43:45.055 --> 00:43:46.456
and this is the extreme case,

00:43:46.516 --> 00:43:48.438
but we're deciding that we're going to go,

00:43:48.498 --> 00:43:48.698
you know,

00:43:48.718 --> 00:43:49.659
we're going to shut down the DAO

00:43:49.679 --> 00:43:51.200
and give the money back to ourselves,

00:43:51.260 --> 00:43:51.400
right?

00:43:51.421 --> 00:43:53.262
And this is like the worst

00:43:53.302 --> 00:43:54.944
case scenario that happens sometimes.

00:43:55.064 --> 00:43:56.545
I'm not going to name names right now, but

00:43:57.205 --> 00:43:58.166
And it leads to all kinds of

00:43:58.226 --> 00:43:59.886
conflict and lawsuits and stuff.

00:44:00.787 --> 00:44:04.148
But if you want to avoid that extra step,

00:44:04.208 --> 00:44:05.689
which makes things less autonomous,

00:44:05.769 --> 00:44:06.009
right?

00:44:06.469 --> 00:44:08.430
It's really the step of like, okay,

00:44:08.450 --> 00:44:09.770
we make a decision through

00:44:09.791 --> 00:44:11.191
whatever mechanism and now

00:44:11.631 --> 00:44:12.792
the board decides.

00:44:13.412 --> 00:44:13.592
Right.

00:44:13.852 --> 00:44:15.393
Versus in a DAO LLC,

00:44:15.634 --> 00:44:17.375
you can have that structure if you want.

00:44:17.395 --> 00:44:18.896
You can use managers and

00:44:19.016 --> 00:44:19.817
give them those rights,

00:44:19.937 --> 00:44:21.078
but usually they don't.

00:44:21.438 --> 00:44:22.178
In a DAO LLC,

00:44:22.238 --> 00:44:23.799
normally whatever your

00:44:23.860 --> 00:44:24.720
governance mechanism,

00:44:24.760 --> 00:44:25.821
which is anything you can

00:44:25.841 --> 00:44:27.302
put in code or write in

00:44:27.362 --> 00:44:28.483
English in your operating

00:44:28.503 --> 00:44:29.464
agreement or reference in a

00:44:29.504 --> 00:44:31.045
smart contract is the

00:44:31.085 --> 00:44:32.506
enforceable legal decision

00:44:32.626 --> 00:44:33.546
of your organization.

00:44:33.887 --> 00:44:35.288
And so whether that is, you know,

00:44:35.328 --> 00:44:36.288
you want that because you

00:44:36.348 --> 00:44:37.089
want full security.

00:44:37.149 --> 00:44:38.550
direct democracy or

00:44:38.610 --> 00:44:39.530
something in between a

00:44:39.590 --> 00:44:40.730
traditional corporate

00:44:40.750 --> 00:44:42.231
governance and direct democracy,

00:44:42.591 --> 00:44:44.132
or you want Futarki or whatever,

00:44:45.732 --> 00:44:47.973
that's all possible with the DAO LLC.

00:44:48.773 --> 00:44:49.013
Yeah.

00:44:49.033 --> 00:44:50.314
And I think just another

00:44:50.694 --> 00:44:51.674
crazy thing that blows my

00:44:51.714 --> 00:44:53.535
mind is that Futarki was a

00:44:54.215 --> 00:44:56.516
theoretical concept

00:44:56.996 --> 00:44:58.237
proposed by Robin Hanson

00:44:58.417 --> 00:44:59.157
that had never been

00:44:59.197 --> 00:45:00.718
implemented effectively.

00:45:01.478 --> 00:45:02.879
And the person and the

00:45:02.939 --> 00:45:04.259
people who created the DAO

00:45:04.379 --> 00:45:05.780
wanted to implement Futarki

00:45:05.800 --> 00:45:06.580
for the first time.

00:45:07.067 --> 00:45:07.807
And they thought that the

00:45:07.827 --> 00:45:09.248
DAO was the best way to do so.

00:45:09.368 --> 00:45:10.828
So if you're not bullish on

00:45:10.868 --> 00:45:13.329
DAOs and you're not a believer,

00:45:13.929 --> 00:45:15.089
I think that the MetaDAO

00:45:15.189 --> 00:45:18.070
example is a great way to

00:45:18.370 --> 00:45:20.691
kind of conjure some belief

00:45:20.731 --> 00:45:22.411
in DAOs because people had

00:45:22.472 --> 00:45:24.072
tried to use this Futarki model,

00:45:24.112 --> 00:45:27.253
this theoretical model before,

00:45:27.713 --> 00:45:28.693
and the DAO was the only

00:45:28.753 --> 00:45:30.074
thing that allowed them to do so.

00:45:31.174 --> 00:45:32.935
And so I think DAOs are here

00:45:32.955 --> 00:45:33.655
to stay and that

00:45:34.774 --> 00:45:36.075
DAO specifically always gets

00:45:36.115 --> 00:45:36.855
me so excited.

00:45:37.275 --> 00:45:38.276
And I love talking about

00:45:38.316 --> 00:45:38.916
them because I think

00:45:38.956 --> 00:45:40.197
they're doing some really cool things.

00:45:41.177 --> 00:45:43.038
Any other thoughts, Adam?

00:45:43.138 --> 00:45:44.219
Anything you wanted to talk

00:45:44.259 --> 00:45:45.639
about before we kind of

00:45:45.679 --> 00:45:46.980
wrap things up about

00:45:47.160 --> 00:45:48.461
anything that we touched on?

00:45:49.470 --> 00:45:50.370
I'll just add a quick note,

00:45:50.390 --> 00:45:51.311
which is I'm going to be at

00:45:51.371 --> 00:45:53.312
DAO Tokyo and Fairness 2024

00:45:53.312 --> 00:45:58.374
in Tokyo and at ETH Tokyo all next week.

00:45:59.314 --> 00:46:01.655
That is the week of August 19th.

00:46:02.096 --> 00:46:03.056
So if anyone's listening to

00:46:03.096 --> 00:46:03.896
this before then and

00:46:03.956 --> 00:46:05.797
happens to be in Japan or

00:46:05.817 --> 00:46:07.738
is going to be there for the same events,

00:46:07.818 --> 00:46:09.339
please let me know so we can meet up.

00:46:09.819 --> 00:46:11.260
But no, Leo, I think this has been great.

00:46:11.320 --> 00:46:11.600
Thank you.

00:46:12.420 --> 00:46:13.861
awesome awesome as a

00:46:13.901 --> 00:46:15.923
reminder um if you're if

00:46:15.943 --> 00:46:17.304
you're interested in

00:46:17.424 --> 00:46:19.185
reaching out please do we

00:46:19.225 --> 00:46:21.427
have a huge um a lawyer

00:46:21.467 --> 00:46:22.468
network that you can talk

00:46:22.508 --> 00:46:23.929
to and i know this whole

00:46:23.989 --> 00:46:25.050
episode has kind of been

00:46:25.090 --> 00:46:26.531
like an ad for mydao but we

00:46:26.571 --> 00:46:27.552
really do want to help you

00:46:27.572 --> 00:46:29.594
um so if you're a lawyer or

00:46:29.634 --> 00:46:31.095
if you're a dow looking to

00:46:31.695 --> 00:46:33.316
get set up, please,

00:46:33.437 --> 00:46:34.457
please do reach out to us.

00:46:34.517 --> 00:46:36.539
We can add you to our lawyer

00:46:36.599 --> 00:46:37.860
network that we're working on,

00:46:38.801 --> 00:46:41.122
and we can put you in contact with,

00:46:41.923 --> 00:46:43.124
whether you're a lawyer,

00:46:43.144 --> 00:46:44.085
we can put you in contact

00:46:44.125 --> 00:46:45.106
with a potential client,

00:46:45.286 --> 00:46:45.986
or if you're a DAO,

00:46:46.006 --> 00:46:47.207
we can put you in contact

00:46:48.388 --> 00:46:49.649
with lawyers that can help you out.

00:46:50.810 --> 00:46:51.370
Lastly,

00:46:51.831 --> 00:46:54.273
you can find us on Farcaster at MyDAO.

00:46:54.993 --> 00:46:56.654
You can find me on Twitter

00:46:56.775 --> 00:46:58.416
and Farcaster at Leo Henkels.

00:46:59.101 --> 00:46:59.221
Um,

00:46:59.501 --> 00:47:02.482
always check out our Twitter or Twitter

00:47:02.582 --> 00:47:04.163
for my DAOs at my doubts,

00:47:04.603 --> 00:47:08.584
M I D A O D S. Um, and then Adam,

00:47:08.624 --> 00:47:10.385
did you want to show some of your, uh,

00:47:10.485 --> 00:47:11.125
socials as well?

00:47:12.146 --> 00:47:12.346
Yeah.

00:47:12.406 --> 00:47:14.527
Find me on Farcaster at the

00:47:14.547 --> 00:47:17.047
thriller or Twitter is zero

00:47:17.227 --> 00:47:18.488
X thriller because the

00:47:18.528 --> 00:47:21.509
thriller wasn't available and, uh,

00:47:21.569 --> 00:47:22.509
happy to chat with anyone

00:47:22.529 --> 00:47:23.590
who wants to talk about DAOs.

00:47:24.592 --> 00:47:24.872
Awesome.

00:47:25.292 --> 00:47:26.113
We're always here to help.

00:47:26.213 --> 00:47:27.494
So please do reach out if

00:47:27.534 --> 00:47:28.274
you want to talk.

00:47:29.195 --> 00:47:30.496
If you would consider liking

00:47:31.076 --> 00:47:32.997
the podcast or leaving us a comment,

00:47:33.037 --> 00:47:33.837
we'd love to.

00:47:34.338 --> 00:47:35.699
We love our fans and we'd

00:47:35.719 --> 00:47:37.119
love to hear from you guys.

00:47:37.660 --> 00:47:39.841
And as a disclaimer and a reminder,

00:47:40.041 --> 00:47:41.202
none of this was legal,

00:47:41.922 --> 00:47:43.543
financial or tax advice.

00:47:43.763 --> 00:47:44.964
Please consult the

00:47:45.024 --> 00:47:46.165
respective professionals

00:47:46.645 --> 00:47:48.106
for that type of advice.

00:47:48.626 --> 00:47:49.487
We're not your lawyer.

00:47:49.547 --> 00:47:49.987
We're not your

00:47:50.474 --> 00:47:52.335
tax advisor, et cetera.

00:47:52.415 --> 00:47:54.396
So if you have any of those questions,

00:47:54.596 --> 00:47:56.177
we can point you to people

00:47:56.237 --> 00:47:57.377
who can't answer them,

00:47:57.457 --> 00:47:59.058
but we can answer them ourselves.

00:48:00.058 --> 00:48:00.499
Lastly,

00:48:00.719 --> 00:48:02.059
are you thinking about starting a DAO?

00:48:02.840 --> 00:48:03.383
Just DAO it.