Hire a Lobbyist for the 88th Texas Legislative Session

TLDR: I believe we should hire a lobbyist (Jacob Smith, an ATX DAO member who has been integral in getting us this far with our policy work) for this legislative session. The cost is $5k/mo for 4 months (total $20k). This is expensive but I want to call attention to the following information that is relevant to treasury impact:

1. I will indefinitely suspend my $1500/mo stipend starting with February's payment
2. We are no longer on the hook for the $25k venue cost for SXSW
3. The legislative session occurs every other year, so we will not see this expense in 2024
4. We can host a BBQ fundraiser that could bring in thousands of dollars depending on ticket costs (with only $500 overhead for meats, etc.)
5. If ATX DAO reopens memberships, this cost is easily recoupable, and part of the reasons people want to join ATX DAO is because we are becoming a legitimate force in the policy arena

Without a dedicated lobbyist, our bill will not have a chance of passing, we will have wasted a year of work, and we will have backed down from pursuing a core part of our mission.

This is something we need to do.

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ATX DAO started its foray into policy in February 2022, but it has been a goal since the founding of the organization. We set out to work with the state and local government, to become reputable experts and advisors, and to shape the future of Austin and Texas as a whole.

It’s been incredible what we have accomplished over the past year. We’ve testified for the city council and influenced the decision about whether to embrace CityCoins. We’ve worked with the Texas Work Group on Blockchain Matters to craft legislation that would allow DAOs to become legal entities in Texas, testifying at the Capitol multiple times. We wrapped up 2022 with a gala celebrating the partnership between TBC and ATX DAO which initiated a relationship with John Bucy and the IT Caucus.

More recently, for those who are unaware, we were connected with a16z who allowed us to collaborate with David Kerr - the premier thought leader in DAO law - to rework our initial draft. As of January 31st, the new and improved DAO bill (tentatively called “Texas Business Code Modernization”) has been submitted to Legislative Council and will soon be filed by Representative John Bucy.

A person who has been invaluable to ATX DAO’s policy operations from day one has been Jacob Smith. Jacob collaborated with Nate Walker to drive attendance to our first Government Relations event, bringing city council members, state representatives, a state senator, and more. Jacob helped us shape our priorities after that event and helped facilitate the beginning of our relationship with TBC. Jacob made multiple connections between former Mayor Steve Adler and his office to ATX DAO and more recently, Jacob brought Representative John Bucy, the chair of the IT Caucus, to our gala and helped solidify him as the sponsor of our bill in the Texas House of Representatives.

This proposal requests $5k/month to pay Jacob Smith to lobby for our law throughout the 2023 legislative session (ending in May), a total cost of $20k. Our treasury is currently sitting at around 103k, so this is no small ask, but I believe it is of existential importance to our organization to invest in this endeavor. I recommend that we open a membership this round this year and my personal goal is to build out revenue streams for the organization as a whole.

If we do not hire a lobbyist, the DAO bill will not pass. It is priority 5 of 6 for the TBC. Hiring a lobbyist is what it takes in Texas for us to do our best and if we don’t try - what was the work we’ve done over the past year been for? All the investment we made into events and the time our members spent at the Capitol, writing, meeting with leaders, and working the booths - would be for nothing. All of the messaging we’ve communicated to the world would just be lip service. When it came time to play ball, we backed down.

For those who are unaware, the legislative session happens once every two years. Meaning we will not have this opportunity again until 2025 and meaning this cost will not be a part of our 2024 expenses.

View this as an investment like the Mural Project. It is crucial to our mission and although there is no guarantee that the bill will pass even if we put our full force behind it, it is what we have to do as an organization to be true to ourselves and true to our mission.

To soften the financial impact of this proposal I have a few ideas:

• We could host a fundraiser before the end of the legislative session. Quin Weidner has graciously offered to host and BBQ. I propose that we sell tickets and have a donation-matching program
• The community could reach out to their networks and request donations for our cause. Lobbying is not cheap, but it is what is required. If the community themselves want to contribute, that would also be welcomed.
• I will indefinitely forfeit my DAO operator stipend ($1500/mo) that I receive for my consistent contributions

NOTE: We no longer have any financial stake in a SXSW event. We are no longer under contract with Empire and the 12.5k we had allocated for a deposit was not used. That total 25k liability is no longer on our balance sheet.

Jacob is the real deal and at this point, he is the lobbyist in Texas with the most DAO experience. He already demonstrated what he can do out of goodwill, for free, but it’s time to hire him and let him do his job for the good of the DAO and for the crypto industry in Texas.