[IMPACT]
DAO-NET is a collective of DAOs, a DAO composed of DAOs. DAO-NET will operate as the legal interface to legacy government for the DAO collective by providing a collective Tax Pool framework to pay taxes, fees and fines to legacy governments for member DAOs. To facilitate this function DAO-NET will be founded as a Limited Liability Company under the Wyoming DAO LLC law.
The target audience is for any individual or group looking to start a legally compliant algorithmic DAO for the purposes of funding projects, without having to delve into the legal and accounting intricacies themselves. An added benefit will be a network of DAOs, with which to collaborate on mutually beneficial projects and to grow DAO membership.
DAO-NET is designed for modular growth and the current methodology for associating DAO membership uses encrypted Shelley addresses however migrating to encrypted Atala Prism DIDs for DAO membership will allow users to better restrict information shared with specific DAOs while allowing DAOs more specific membership criteria. In this scenario, DAO-NET would be the credential issuer while DAOs within DAO-NET would be the verifiers.
The overall impact will be a framework for rapidly launching legally compliant algorithmic DAOs, in an exponential growth of interoperable functionality, that will facilitate the pursuit of virtually any collective objective.
This proposal explicitly addresses the Self-Governance of Emergent Communities aspect of the challenge, including the DAO Governance in Practice sub-challenge to create a Wyoming DAO LLC.
The pilot and initial minimal viable product will be launched in 2022 aligning with the relevant metric.
Each algorithmic DAO is a repeatable smart contract pattern which aligns with the discovery of repeatable patterns in use-cases metric therefore this metric becomes the number of DAOs in DAO-NET.
By default the number of issuers would be just DAO-NET however it is possible that DAOs within DAO-NET could be issuers of their own for members meeting specific criteria for instance a DAO dedicated to producing a list of verified unique members to provide Sybil attack protection.
The number of holders is equal to the number of DAO-NET members while the number of verifiers is equal to the number of DAOs.
The number of verifications performed on credentials in production is not a readily available metric however this DAO-NET project will include tracking this metric on an ongoing basis.
The relevant metrics of the number of DAOs, members, and verifications will be collected and displayed on a publicly available dashboard that is updated on a minimum of a daily basis.
The main challenge for this project is that the legal, accounting and smart contract auditing costs may be under budgeted as the potential hurdles and associated costs are unknown at this stage.
The DAO-NET suite of proposals has several strategies to address potential cost risks:
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By having multiple modular projects in each funding round there is a required overlap of funding to make each project functional on a stand-alone basis however as more projects are funded then the overlap can be used to cover potential shortfalls
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DAO-NET intends to launch a Mission Driven Stake Pool in May to help fund its operations
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Longer term solutions include a merchandising campaign (see the Merchandise Store project) and the DAO-NET: Development Funder project as additional revenue streams.
[FEASIBILITY]
Roadmap
May 2022
- Engage legal counsel for regulatory compliance of design, requirements for algorithmic DAO LLC filing under Wyoming Law, Articles of Organization amendment requirements when underlying smart contracts are amended, registered Wyoming agent, minimum Know Your Client requirements, payment in ADA and public disclosure of legal advice
- Engage tax accountant for tax code compliance of design, taxable status of internal DAO-NET transfers versus external transfers, payment in ADA and public disclosure of tax advice
- Design Atala Prism DID integration for DAO membership management
- Design DAO smart contract modification to add DAO-NET Treasury and Tax Pool
- Design metric reporting dashboard
June 2022
- Prototype algorithmic DAO smart contract modification to add DAO-NET Treasury and Tax Pool
July 2022
- Prototype Atala Prism DID integration for DAO membership management
- Prototype metric reporting dashboard
August 2022
- Third Party Smart Contract Audits
September 2022
- Test algorithmic DAO smart contract with DAO-NET Treasury and Tax Pool modifications on Testnet
- Test Atala Prism DID integration for DAO membership management on Testnet
- Test metric reporting dashboard for Testnet
October 2022
- Launch DAO-NET (a modified instance of the algorithmic DAO smart contract comprised of the collective components above) on Mainnet
- Launch metric reporting dashboard for Mainnet
- File for algorithmically managed DAO-NET LLC under Wyoming law (DAO smart contract must be operational at time of filing)
Legal Services: $15,000
Accounting Services: $5,000
DAO smart contract modification ($1,000/month): $6,000
Atala Prism DID Integration ($4,000/month): $24,000
Metric Reporting Dashboard ($1,000/month): $6,000
Smart Contract Audits: $10,000
Product Manager ($1,000/month): $6,000
Total: $72,000
Skills Required
Product Manager
- have a holistic understanding of the DAO-NET suite of proposals
- experienced in managing multidisciplinary teams in up to a dozen projects simultaneously
- ability to articulate and fluently translate between business and technical requirements
- able to manage large complex budgets
- experienced in hiring consultants and third party contract negotiations
Lead Developer
- Full stack developer experience
- Plutus development, especially algorithmic DAO smart contract primitive
- Define technical requirements
- Integrate multiple software components into a larger solution
Atala Prism Developer
- Atala Prism pioneer
- Plutus smart contract development
- Decentralized identity management for membership management applications
Frontend Designer/Developer
- Full stack developer experience
- Frontend design and development experience for mobile and browser applications
- Knowledgeable of dashboard user interface designs
Partners:
Legal Firm
- Wyoming DAO LLC legislation experts, including Articles of Organization
- ability to be a registered Wyoming agent for a DAO
- experience in regulatory compliance requirements for crypto and blockchain companies in the US and internationally
Tax Accountant
- experience in Wyoming, US and international tax compliance requirements for DAOs, crypto and blockchain companies
Team
Product Manager: Dwayne Collard - 20 years+ IT Consultant, Solutions Analyst, IT Manager, Community Advisor https://www.linkedin.com/in/dwayne-collard/
Lead Developer: Jude Ben - 9 years+ Software Development , Plutus Smart Contract Development , Cloud and Infrastructure Engineer https://www.linkedin.com/in/judeebene/
Atala Prism Developer: Contractor to be determined.
Frontend Designer/Developer: As part of previous DAO-NET funding, DAO Coders has been building a small pool of, currently 3, contractors. This work may be done by an existing or a new contractor depending upon availability.
Partners:
Legal Firm: Partner to be determined. Intent is to use the potential contacts referenced in the challenge.
Tax Accountant: Partner to be determined. Intent is to use the potential contacts referenced in the challenge.
[AUDITABILITY]
Development progress will be tracked using an agile methodology and weekly team meetings. Specific quantitative indicators to be tracked will be Total Number of Pull requests in Github, Total Numbers of Github commits and the Total Number of Errors Fixed.
Success Criteria
- DAO-NET is registered as an algorithmically managed DAO LLC under Wyoming Law
- DAO-NET is able to issue membership credentials to members
- DAO-NET members hold Atala Prism DIDs with relevant credential information used to join DAOs
- DAOs within DAO-NET are able to verify membership criteria using Atala Prism DIDs
- Relevant smart contracts successfully pass security audits from a credible third party
- A publicly available dashboard reporting the number of DAOs, Members and Verifications performed in DAO-NET on a minimum daily basis
This proposal is a member of the DAO-NET suite of proposals originally submitted in Fund 7 and continued in Fund 8. This proposal is an update of the DAO-NET proposal in Fund 7.
In Fund 7, the following DAO-NET suite of proposals were funded: DAO-NET: DAO Deployment Platform, DAO-NET: Legal Defense DAO, DAO-NET: Auditor DAO and DAO-NET: Multilingual Translation.
In Fund 7, there were a total of 8 other DAO-NET proposals that were approved but not funded.
All of the DAO-NET suite of proposals are interrelated but each proposal in Fund 7 could be standalone funded. The core DAO smart contract coding was funded with the DAO-NET: DAO Deployment Platform project which means that this work no longer needs to be contingency funded in Fund 8.
DAOs are a paradigm evolution in how societies organize themselves and the DAO-NET vision is to systematically progress towards that evolution by breaking the larger vision down into small incremental steps with each proposal. As part of that vision all DAO Coder Inc intellectual property is intended to be freely shared with the world so that any insights can be duplicated in other experiments to rapidly advance decentralized governance therefore:
- All software developed as part of this proposal will be Open Source under Apache License, version 2.0
- All documentation will be licensed under the Creative Commons Attribution 4.0 International Public License
In Fund 8, DAO Coders Inc has submitted 2 categories of proposals Alternative to Tyranny (A2T) proposals which are decentralized wargame simulator modules for testing decentralized idea implementations against probable authoritarian responses and DAO-NET proposals which are real world implementations that can be implemented immediately.
A2T and DAO-NET share a lot of base smart contract code and are meant to be interoperable to the largest degree and conceptually share similar designs. As new features are added in either suite then the transfer to the other suite of those improvements should be straight forward however since each suite is designed to be independently community run, after launch, this easy interoperability may diverge over time.
In Fund 8, DAO Coders has submitted the following proposals: