GM 70.1 : gm. studio incorporation (Final Vote)

Author:

Defi Beats

Proposal date:

June 7, 2023

Summary:

It is time to release payment for the second of 3 invoices for our Lawyers who are assisting us in incorporating the DAO and Studio. Old approved proposal below for reference.

OLD PROPOSAL FROM AUGUST 2022**:**

TL:DR - Hire a Lawyer to incorporate our DAO and Studio (and an entity to new ‘products’). This proposal is for invoice #1 only

Under existing laws, it is possible a court or regulator could view the DAO, given its unincorporated status, as a general partnership. This could potentially create a lot of risk for individual members of the DAO.

In addition to this we will need to pay taxes for the year 2022 and wish to incorporate in a jurisdiction with the most advantageous tax code.

Lastly, with the idea of $GMC being thrown around we want to retain a lawyer who can help us keep this above board and within best practices.

Because of this, we have started interviewing web3 Lawyers and hope to bring the best candidate in front of the DAO for a vote. We have isolated one candidate who has a lot of experience incorporating DAOs in Switzerland. We will share a lot more details but the idea here is to get the conversation started since we would like to move fairly quickly.

We think that the DAO should be incorporated as a non-profit while the studio should be a for profit entity - However, this is 100% up to what the lawyer recommends and what we vote on as a group in the future.

Risks:

Hiring the wrong firm and wasting the DAO’s money

Payout recipient:

LOREZ LEGAL

Why This Firm?:

The firm was recommended by a lawyer that is working with a side project from one of the gmDAO member. He was told that she was specializing in wrapping DAOs in Switzerland. She was one of the three candidates for addressing the incorporation of gmDAO.

She has wide experience as she has wrapped more than 40 DAOs in Switzerland. She presented the arguments on why Switzerland is the best location as it is a safe regulatory environment, friendly tax related and advantages for marketing (Cryptovalley). She identified the different possible scenarios how to set up DAO and the Studio based on her experienced.

How We Will Go About This?

We will continue to update this proposal as more information becomes available. But wanted to start the discussion process now as it’s in all of our best interests to start soon.

Full SOW can be found here:

https://drive.google.com/drive/u/0/folders/1RPygrlXQ6SYqUmZprZtJSeWzpHlmmI7S

Already Paid

Updated 6.07.23

Total = 60,000 CHF ($62,721.54 USD)

(PAID) First Invoice = 30,000 ($31,280.94 USD)

(DUE NOW) Second Invoice = 15,000 ($16,511.5 USD)

(DUE IN FUTURE*)Third Invoice = 15,000 ($16,511.5 USD)

*payment will be released once services are rendered and fully completed.

Released in this proposal

• 30,000 CHF ($33,023 UDC) 5.5% of treasury (of the three lawyers we spoke to, all three were within this range)

Sponsors:

Cyphr