[AGIP 50] Create AavegotchiDAO Foundation

Author: Jesse | gldnXross#6482 GotchiID: 4563 Quorum requirement: 20% (9M) Vote duration: 7 days XP Reward: 20 XP for each Aavegotchi in the voter’s wallet Discourse Thread: https://dao.aavegotchi.com/t/form-aavegotchidao-foundation-with-9-directors-multisig-signers/4551 Sigprop: https://vote.aavegotchi.com/#/proposal/0xa9fb5cbdeae064bf114b27ea77390e93d8515c6c3512d4352f21e99212628483

INTRODUCTION AavegotchiDAO was summoned as a 100% on-chain DAO in September 2020 via the deployment of the GHST bonding curve. Since then, the DAO has matured into one of the world’s most active with over forty successful AGIPs passed and extremely healthy metrics on Snapshot. Over this period we also graduated across our DAO’s roadmap, going from DAO 1.0 into the more experimental period known as Cocoon, our precursor to Metamorphosis (AKA DAO 2.0). Achieving Metamorphosis requires the DAO to further decentralize and accept more responsibilities currently guarded by the original summoners and Pixelcraft Studios.

Today we propose the next major step forward by suggesting it is time for AavegotchiDAO to add an off-chain presence to our decentralized autonomous organization. The following proposal is rooted in months of research and interfacing with a variety of legal advisors. We also take the practices of leading peers such as ENS and Sushi into consideration, opting for Foundation formation in the Cayman Islands coupled with on-chain governance being secured as primary via the Foundation’s Constitution.

Read on to see how we may move AavegotchiDAO forward in a way that drives progress for our vision of an open-source, on-chain gaming protocol!

PROPOSAL My proposal is for us to form the AavegotchiDAO Foundation in the Cayman Islands as soon as possible by following these steps:

1. AGIP 51 is simultaneously live to elect 9 Directors/multisig signers. The results of this election will only be applied if this CoreProp to form the Foundation passes.

*Hear from all of the applicants for Directorship at our Discord's “#DAO Entity Signaling Thread” under #Dao-forum.

2. Submit the nine fully KYC’d, elected Directors details to our legal counsel from LEX DAO so that they can immediately begin Foundation formation.

3. Upon formation of the Foundation, the Directors shall create the new Foundation’s primary multisig using Gnosis.

4. Pixelcraft Studios shall transfer DAO Treasury multisig funds to the Foundation multisig, including DAI, GHST, and Alchemica on both Ethereum and Polygon networks.

5. The Foundation is thus formed, ready to execute transactions according to the will of AavegotchiDAO. Further definitions of responsibilities, scope, goals and limits can be defined by the DAO at a later date.

FOUNDATION DETAILS Entity

• A Cayman Islands foundation with a board consisting of 9 Directors, who are also the multisig signers of the DAO Treasury wallet.

• Legal Counsel shall arrange a local officer to act as secretary fulfilling basic administrative requirements until further notice.

• Legal Counsel shall arrange a local corporate secretarial service to assist with Foundation formation, documentation and production of financial statements.

DAO Treasury

• All DAO treasury funds present and future shall be transferred to the Board’s multisig.

• The GHST Bonding Curve Council tokens could potentially also be transferred to the multisig signers, via a new AGIP proposal.

• Eventually, all protocol contracts could be owned by this multisig, or if that is deemed not ideal, could be owned by the DAO itself (onchain voting) with the Board multisig action as a last resort Guardian to prevent malicious transactions.

Bank Account Upon formation of the Foundation, legal counsel will confer with our corporate secretary to establish a Cayman Island’s bank account on the Foundation’s behalf. While not immediately useful, we have requested that this bank account be opened so as to futureproof the DAO to be able to natively settle any off-chain expenses (tradfi subscription fees, service providers, etc).

Board of Directors

• Consists of nine doxxed Directors that also act as multisig signers on the DAO Treasury multisig. The DAO Treasury multisig shall be set at 5/9 signers in order to execute.

• Paid position starting at 8000 GHST per year, paying 2000 GHST to each Directory directly from the Treasury multisig every 90 days.

• The Board acts as the executor of the DAO’s wishes. If individual Directors disagree with an action of the DAO, they can choose to resign but they cannot vote or act against a verified on-chain AGIP’s intent.

The Officer The Foundation also requires at least one Officer to serve an official capacity for signing off-chain documentation. Legal offers a package to deliver one local Officer to fulfill this role. This is not a role for advocacy so this Officer will simply execute signatures at the direction of the Directors. Of course, AavegotchiDAO can always revisit or even expand Officer roles at any point.

The Constitution

• Legal Counsel will draft and supply a first version of a Constitution that takes best practices from fellow DAOs into consideration. Counsel will submit this Constitution in the form of a Google Sheet with comments turned on for our community to give feedback and suggest changes.

• Counsel and the DAO shall go back and forth in up to three drafts before the Constitution is sent to Snapshot for a three-day CoreProp regarding ratification.

• If ratification fails, another two drafts shall be edited before re-submitting for another CoreProp vote. This process continues until a ratification of the Constitution is achieved.

• The Consitution Ratification shall require 66%+ support once ready for CoreProp (no Sigprop).

ROADMAP (Estimated and updated since Sigprop) Now - Nov 21: DAO Discussion Forum + Signaling (PASSED) Nov 21: 3 Day Sigprop on whether or not to incorporate Nov 27: 7 Day Coreprop with elections Dec 5 - DAO Foundation directors confirmed/elected Dec 17 - DAO Foundation officially launched with 9 directors Dec 18 - DAO Treasury multisig transfers to the Foundation Q2 2023 - Diamond Contracts transfer to Foundation

Benefits of Formation

• Independence; greater separation of Pixelcraft Studios from AavegotchiDAO
• Board can execute proposals on behalf of the DAO (Liquidity provision, GHST staking, funding Dework, etc.)

Risks of Formation

• More responsibility on AavegotchiDAO governance
• More exposure to any future policy shifts specifically in the Cayman Islands jurisdiction

Join the conversation in the forum and be sure to review those applying to serve as Directors in AGIP 51 as well.