D2IP1: Acknowledgement and Ratification of Key Agreements and Actions for D2 DAO

Proposal Description: This proposal outlines several key acknowledgements and ratifications for the operation and governance of D2 DAO. These points align with the documentation and strategic directions of the organization.

The following summary of actions is to be considered for formal approval:

1. Acknowledge and Ratify Operating Agreement and Certificate of Formation

Details: The D2 DAO formally acknowledges and ratifies the Operating Agreement and Certificate of Formation, thereby affirming its status as a non-profit entity under the legal framework of the Marshall Islands. These documents establish the governance, purpose, and operational structure of D2 DAO.

Key Points:

• D2 DAO is recognized as the exclusive owner of the d2.finance domain.
• D2 DAO will manage and host the new decentralized application accessible through the d2.finance domain
• D2 DAO is the exclusive operator of d2.finance
• D2 DAO has no team. It relies on external service providers.

2. Acknowledge and Ratify Token Vesting through LlamaPay

Details: D2 DAO acknowledges and ratifies its status as the largest holder of D2 tokens, with 19 million tokens vested through the LlamaPay contract (0xbb56ee89e454a27453606233fc2a0c17adb07823) between 2026 and 2030. This information is available for verification at https://arbiscan.io/token/0xed7f000eE335B8199b004cCA1c6f36d188CF6cb8#balances

Key Points:

• The tokens are intended for distribution as rewards to foster the D2 Ecosystem.

3. Distribution of Tokens for Rewards

Details: The tokens mentioned in point 2 are designated for distribution as rewards.

Key Points:

• The distribution strategy for these tokens will have to be data-driven, leveraging insights from the xD2 wars case study. For more details, refer to the xD2 wars https://medium.com/@D2.Finance/xd2-wars-real-yield-more-yield-power-7a9a221658e5
• Reward tokens can only be distributed if the D2 token exceeds 4.14 D2/USDC or else they must be burned.

4. Termination of Relationship with BWS Labs

Details: D2 DAO acknowledges and ratifies the termination of any formal relationship with BWS Labs, a Swiss company that previously stewarded D2 towards decentralization.

Key Points:

• Effective immediately, BWS Labs will no longer be involved in the projects and will be regarded solely as a token holder.

5. Service Agreement with ARTechnology

Details: D2 DAO formally acknowledges and ratifies the engagement of ARTechnology, an entity registered in the British Virgin Islands (BVI), to provide services under a trial agreement.

Key Points:

• The trial agreement with ARTechnology is structured on a month-to-month basis during the alpha phase of the D2 DAO projects.
• This trial period is intended to evaluate the effectiveness and suitability of ARTechnology’s services in supporting the project’s objectives.
• Upon reaching a Total Value Locked (TVL) threshold of $10 million through the d2.finance platform, D2 DAO will enter into negotiations with ARTechnology to establish a comprehensive and long-term service agreement.
• The comprehensive agreement will necessitate legal consultation to ensure that all terms are compliant with applicable laws and adequately protect of both parties

6. Blocking Services to Certain Countries

Details: D2 DAO acknowledges and ratifies its duty to block services to countries where legislation may restrict DAO activities.

Key Points:

• Access to the platform will be blocked for residents or citizens of the listed restricted countries, including but not limited to Antigua and Barbuda, Algeria, Australia, Bangladesh, Bolivia, Belarus, Burundi, Myanmar (Burma), Cote D’Ivoire (Ivory Coast), Crimea and Sevastopol, Cuba, Democratic Republic of Congo, Ecuador, Iran, Iraq, Liberia, Libya, Mali, Morocco, Nepal, North Korea, Somalia, Sudan, Syria, Switzerland, United States, Venezuela, Yemen, Zimbabwe, or any other country to which the United States, the United Kingdom, or the European Union embargoes goods or imposes similar sanctions (collectively, "Restricted Territories").

7. Clarification of D2.Finance's Role

Details: D2 DAO formally acknowledges and ratifies that D2.Finance is not constituted as an investment firm but operates as a decentralized software platform. D2.Finance holds exclusive ownership and operational control over the decentralized application (dApp) deployed at the domain d2.finance. This ratification extends solely to the dApp at the aforementioned domain and does not imply ownership or control over any additional assets, funds, or entities.

Key Points:

• The D2.Finance platform provides hosting services for non-custodial vaults that are accessible across multiple blockchain networks. At no point does the platform hold or own any of the funds associated with these vaults / smart contracts. The platform's role is limited to facilitating access and management of these vaults / smart contracts without taking custody of the assets therein.
• D2 DAO will regularly update its disclaimers and restrictions to reflect any changes or necessary clarifications regarding platform use and user obligations. For detailed information, pls refer to the disclaimer and restrictions: https://gitbook.d2.finance/faqs-and-disclaimers/disclaimer-and-restrictions

8. Opening Deposits on d2.finance

Details: D2 DAO hereby resolves to permit the initiation of deposit transactions on the d2.finance front-end on a restricted, trial basis.

Key Points:

• Deposits will be permitted from June 18, 2024, until the conclusion of August 2024, solely for the purposes of trial and testing.
• This trial phase is intended to evaluate the functionality and security of the deposit process, and does not constitute a full-scale deployment or permanent operational status.
• Participation in this trial phase is subject to all terms and conditions specified in D2 DAO’s operational guidelines and does not imply any commitment by any parties to continued access or services beyond the trial period.

9. Future Voting for Restrictions

Details: D2 DAO hereby acknowledges and stipulates that an additional vote shall be conducted prior to August 2024 to evaluate the necessity and scope of any further restrictions on the platform's operations.

Key Points:

• A subsequent vote will be mandated to assess and determine the implementation of additional restrictions, if any, that may be required to ensure compliance with regulatory requirements and operational integrity.
• This vote will serve as a critical decision-making juncture to address and incorporate any legal, technical, or market developments that may necessitate the imposition of new or modified restrictions on the platform's functionality and user engagement.
• The outcome of this vote will guide the future regulatory and operational framework of the D2.DAO platform, ensuring alignment with best practices and legal obligations.

Legal Notice:

This proposal does not constitute a comprehensive agreement but is intended to provide a framework for ongoing testing and the iterative development of D2 DAO’s operational protocols. Any investments made during this phase are characterized by a high degree of speculation and involve significant risk. Potential investors should be aware of the inherent risk factors and should be prepared for the possibility of incurring substantial losses, including the total loss of their investment. This proposal is subject to modification and does not represent a final or binding commitment by D2 DAO. Investors are advised to consult with independent legal and financial advisors prior to making any investment decisions.