Convening a Roundtable meeting to Address Governance and Transparency Concerns in BAG DAO

Background

The BAG DAO community is currently facing a series of critical issues that have raised significant concerns among stakeholders. These issues span across transparency, financial management, leadership engagement, regulatory compliance, and overall operational integrity.

1. Lack of Transparency

Absence of a Public Roadmap: There is no clear direction or future plan communicated to the community, leaving stakeholders uncertain about the DAO's strategic objectives.

Outdated Financial Channels: The DAO's financial channels, which are intended to provide transparency, have not been updated, resulting in stakeholders being uninformed about financial activities.

Unreported Borrowings: The DAO transactions channel fails to reflect the borrowings undertaken by the team. On-chain activity indicates that the team is borrowing more funds than what was approved in the budget proposal, raising concerns about unauthorized financial activities.

2. Financial Mismanagement

Casino Financial Deficits: The casino-financials report reveals a continuous weekly deficit, primarily due to poor revenue income combined with high expenses from leaderboard and wearable rewards.

Unaccounted Budget for User Acquisition: A budget allocated in December for user acquisition campaigns has yielded no shared results. Despite community inquiries, the team has consistently delayed sharing outcomes, citing ongoing tests, while key performance indicators such as daily active users, gambling volume, and profits continue to decline.

3. Leadership Disengagement

Inactivity of CEO and COO: The original leadership, including CEO Miles Anthony and COO Ryan Michael de Taboada, have ceased communication on all platforms. Their current involvement with the DAO remains unknown, leading to uncertainty about the organization's leadership.

Lack of Investor Communication: There has been no outreach or updates provided to investors, leaving them uninformed about the DAO's status and developments.

4. Regulatory Concerns

Token Classified as Security: The company's token has been considered a security by the BCAS law firm, potentially constituting an illegal security offering. This raises serious legal and regulatory compliance issues for the DAO.

5. Potential Misuse of Funds

Side Project by Co-founder: A side project led by Steve Becerra, one of BAG's original co-founders, focuses on AI agents unrelated to BAG's core casino business. This project raises concerns about the possible diversion of DAO funds, especially since Becerra was receiving a salary from BAG DAO until last month.

6. Operational Concerns

Reduced Social Media Activity: There has been a noticeable decline in social media postings, with only sporadic updates every few days, indicating a lack of active engagement with the community.

Delayed Reporting: Despite community inquiries, the team has consistently delayed sharing results from user acquisition campaigns, citing ongoing tests. This lack of timely reporting hampers the community's ability to assess the effectiveness of these initiatives.

7. Community Disempowerment

Inability to Enforce Accountability: The DAO lacks mechanisms to compel the team to participate in a roundtable call or address the raised concerns, leaving it to the discretion of individuals like Miles and Ryan. This situation underscores the community's limited power to enforce accountability and transparency within the organization.

Proposal

We propose convening a roundtable meeting on Wednesday, May 7, to address pressing concerns regarding BAG DAO's governance, financial transparency, leadership engagement, and regulatory compliance. This meeting aims to foster open dialogue between the DAO leadership and stakeholders to clarify the current status and future direction of the organization.

Rationale

It is highly irregular for an organization that has raised public funds to operate without transparent communication and active engagement from its leadership. The prolonged silence from key figures, notably CEO Miles Anthony and COO Ryan Michael de Taboada, coupled with the lack of updates on financial activities and strategic initiatives, undermines stakeholder confidence and the foundational principles of decentralized governance. A roundtable discussion is essential to address these issues directly, re-establish trust, and ensure that the DAO operates with the accountability and transparency expected by its community and investors.