DRC: Implement a Guernsey Purpose Trust for the dYdX Grants Program (DGP)

In Reference to:

• https://dydx.foundation/blog/en/legal-framework-non-us-trusts-in-daos
• https://forums.dydx.community/discussion/4049-drc-implement-a-guernsey-purpose-trust-for-the-dydx-grants-program-dgp

Summary We propose that the dYdX Grants Program (DGP) implement the Guernsey purpose trust structure (the “Purpose Trust”) contemplated in the “Legal Framework for Non-U.S. Decentralized Autonomous Organizations” (the “Framework”) post created by the dYdX Foundation.

As outlined in the Framework, the Purpose Trust would have trustees, an enforcer and assets transferred to it. We propose that the 8 person multi-sig committee (the “Grants Committee”) act as trustees (the “Trustees”) for this entity, with Reverie acting as the enforcer (the “Enforcer”) and the assets currently in the Grants Committee multi-sig becoming part of the Purpose Trust. (We explain these terms in greater depth below). Operating the DGP under this structure will offer many benefits to the DGP, including greater flexibility to distribute funds to grantees and engage in off-chain activity, minimization of the tax burden for the DAO, and legal protection for the grants lead (Reverie) and the committee members.

Until now, DAO-funded initiatives have run into significant operational and legal challenges. We believe the Purpose Trust is a big step towards solving those hurdles and paving a path forward for the industry.

Should the DGP implement a Guernsey Purpose Trust?