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?

  1. To design and execute a coherent legal strategy for the TE Commons Hatch, Bonding curve mints and burns, proposal distribution RAPIDLY

  2. To research other legal strategies or pertinent smart contracts that similar projects are doing

  3. 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.

  1. 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

  2. Investigate:

    1. CSTK Tokens

    2. Swiss Associations

    3. PrimeDAO

    4. DIA

    5. Fairmint

    6. Dxdao

    7. EU new regulation

    8. If you mine a token you don’t need a whitepaper

    9. If you airdrop you don’t need a whitepaper

    10. NFT’s don’t need whitepaper’s

    11. If the value of your token is less than 1 million or max of 150 holders in each country

    12. Managerial body - if you’re not incorporated you can still be compliant

  3. ANJ

    1. https://anj.aragon.org/legal/terms-general.pdf

    2. I can ask Maria about it

    3. Also find out their process for resolving granted proposals that don’t deliver

  4. Investment clubs / collective investment schemes

    1. Initial closed raise (xref EU 150 rule)

    2. Possible crowd-fund with claw (on bonding curve differential) for price discovery

    3. Open listing … white/blacklist of exchanges in long-term?

  5. dOrg - Open Raise

    1. LLC

  6. PICK A DIRECTION! - November 15th

  7. Create a legal design map

    1. token (de) materialization and documentation (interface to existing frameworks)

    2. internal and external liquidity provider interactions and potential legal duties

    3. compliance with any necessary regulatory provisions for convertible virtual currencies

  8. Create a risk matrix

  9. Shortlist legal entity options for discussion (pro/cons from risk matrix) for wider TEC discussion

  10. Finish advisory document for Hatchers

  11. Finish advisory document for Stewards

  12. Finish advisory document for people who interact with the Bonding Curve

  13. Finish advisory document for people who request project funding

  14. 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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