Legal
Legal Working Group Manifesto
Working group lead: Ivy
Last update: March 23rd, 2021
The Legal Working Group Manifesto is a live document, as the working group evolves (e.g. people join the working group, roadmap gets updated) this document should be updated to reflect these changes. This is important so that there is an updated single source of truth for onboarding new members to this group.
Goals
What goals would you like to achieve with this working group?
To design and execute a coherent legal strategy for the TE Commons Hatch, Bonding curve mints and burns, proposal distribution RAPIDLY
To research other legal strategies or pertinent smart contracts that similar projects are doing
Mapping/identifying the common must-have docs for TE activities (TEbook, TEacademy) prior to the launch to ensure consistency/coherency
How will this working group benefit the TEC community according to its near term mission?
We will define the liabilities and legal risks for TEC participants (group-member).
Identity bright lines for verboten behavior and the potential cost of compliance (crowd-funding, GDPR, etc)
Create transparency for the accumulation of contributions (monetary/time) and disbursement of proceeds.
Coordinate with other groups to define common T&C for all user interactions.
Success vs. Failure
What would be considered a success vs. failure?
Success:
We have made a clear plan and have executed it so that we feel that the legal uncertainties that are bound to exist are calculated and well communicated to participants.
Impact Hours
Every participant knows their risks and obligations.
Hatch
Every participant knows their risks and obligations.
Proposals
Every participant knows their risks and obligations.
Buying and Selling into the bonding curve
Every participant knows their risks and obligations.
Terms and Conditions
Success:
Define a few use cases and make sure we have a plan for these use cases.
Failure:
We do some research but don’t execute in time, or we don’t coordinate with the other working groups well enough to
Tasks don’t get done because of disorganization… Degenerate RACI (reporting, accountability, consulted/informed) matrix with mismatched authority/tasking
We don’t fully understand the legal design and legal risks or obligations
Please break down the goals into a roadmap with clear milestones
Project Management
See our project management on Zenhub.
Onboard the legal crew - November 5th
Legal onboarding document.
Define every “legal scenario”, each piece of the TE Commons Puzzle
Contributors that get Impact Hours for building the TEC
Hatchers minting TEC tokens.
Post Hatch TEC Minting - Bonding Curve interaction and tribute.
Funds release through proposals.
Proposals failing to deliver or succeeding :-D
Use the previous doc to onboard new participants to the legal group.
Create groups to work in every “legal scenario” to propose a roadmap.
Set up deadlines.
Checklist of deliverables
Onboard release, terms & conditions, participation agreement Proposal
submission MoU, terms and conditions, draft contract
Investigate:
CSTK Tokens
Swiss Associations
PrimeDAO
DIA
Fairmint
Dxdao
EU new regulation
If you mine a token you don’t need a whitepaper
If you airdrop you don’t need a whitepaper
NFT’s don’t need whitepaper’s
If the value of your token is less than 1 million or max of 150 holders in each country
Managerial body - if you’re not incorporated you can still be compliant
ANJ
I can ask Maria about it
Also find out their process for resolving granted proposals that don’t deliver
Investment clubs / collective investment schemes
Initial closed raise (xref EU 150 rule)
Possible crowd-fund with claw (on bonding curve differential) for price discovery
Open listing … white/blacklist of exchanges in long-term?
dOrg - Open Raise
PICK A DIRECTION! - November 15th
Create a legal design map
token (de) materialization and documentation (interface to existing frameworks)
internal and external liquidity provider interactions and potential legal duties
compliance with any necessary regulatory provisions for convertible virtual currencies
Create a risk matrix
Shortlist legal entity options for discussion (pro/cons from risk matrix) for wider TEC discussion
Finish advisory document for Hatchers
Finish advisory document for Stewards
Finish advisory document for people who interact with the Bonding Curve
Finish advisory document for people who request project funding
Identify cases to see how to address them
What is the deadline?
Early March for Soft Governance Late May! There needs to be a lot of work beforehand, but afterward
Working Style
Define where sync is happening
Discord https://discord.gg/W5CRgPyA
Telegram
What is the pace of the work?
Weekly Calls:
Friday 4 pm TEC standard time (Berlin)
What’s the format / framework / “language” used for articulating the specs? Is there some template or earlier work / best practices to follow? Where?
Members
Who are the members and what are their roles inside of the TEC? What is their availability?
Anja
Griff
Lívia
Santi
Lawrence (IP/IT/ID specialist, LexDAO member) - OK for 1hr (11pm AWST)
Zeptimus
Shawn
Glossary
What is the Hatch?
The Hatch phase is the Bonding Curve’s initialization period. This is where a group of trusted community initiators come together and make the initial decisions on how the Commons will be set up. They will decide the percentage of funds that will go to the funding pool, the exit tribute percentage, and the time hatched tokens will be vested for. Once the parameters are set, Hatchers will pool their funds and receive initial tokens. The bonding curve is then live to be interacted with by participants outside of that initial community.
The funds in the Funding Pool are used to create public goods for the field of token engineering and fund DAO Operations.
The rest of the funds are sent to the Reserve, to back the economic value of the TEC TokenThe Hatch Tribute is effectively a tax levied on the Hatchers to fund TE Public Goods
A high Hatch Tribute will help fund a lot of projects but weaken the return for Hatchers and likely mean a smaller Hatch.
A low Hatch Tribute will strengthen the return for Hatchers and likely lead to a larger Hatch.
What is the Trusted Seed?
The Trusted Seed is a whitelist of people who have contributed to the development of the Commons Stack mission and who have reputation and expertise in areas related to the operation of Commons. Trusted Seed members can also be invited to participate in a Commons Hatch, alongside the Commons’s project launching community. The Trusted Seed as the name suggests, is meant to support future Commons in their initial phase and help them to achieve a sustainable development, which will likely be valuable for many communities experimenting with new economic systems. Trusted Seed members have a legal protection layer with the Commons Stack Swiss Association.
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