Initial Contribution to the DAO Coalition

Title: Initial Contribution to the DAO Coalition

Authors: Clinamenic#4102

Team: Clinamenic#4102 (plus the 50+ other representatives within the DAO Coalition)

Date Created: 10/10/22

Date Posted: 10/10/22 Draft Proposal, 10/13/22 Active Proposal

SUMMARY

Lobby3 has been leading an effort with CityDAO and the Blockchain Association to establish a DAO Coalition for the purposes of advocating on behalf of the DAO ecosystem. As a result of our relationship with the Blockchain Association, earlier this year we were made aware of interests in Washington, D.C., such as the Crowdfunding Professional Association, which are directly averse to the existence of DAOs. This summer, Senators Gillibrand and Lummis introduced S. 4356, the Lummis-Gillibrand Responsible Financial Innovation Act, which, if enacted, would, for the first time, provide a federal framework for DAOs. Even more recently, we’ve seen the CFTC sue Ooki DAO on allegations that, as an unincorporated association, it violated federal laws.

It is in light of the aforementioned threats and opportunities that the DAO Coalition has been holding monthly conference calls since its informal inception this summer. There are now 30 DAOs participating in the DAO Coalition, plus a few advocacy groups and research groups. On our last monthly call, DAO representatives expressed an interest in taking the appropriate steps to establish the DAO Coalition on a more formal basis. Such steps would include the formation of a 501(c)(4) or (6) and associated bylaws, the creation of a website, and, importantly, the drafting of policies and media in furtherance of the strengthening of CityDAO and all DAOs.

DAOs are being formed every day and, according to DeepDAO, there are almost 5,000 DAOs in existence to date. The DAO Coalition aims to harness that collective voice, but would require a small contribution from representative DAOs to sustain its operations. To this end, the DAO Coalition is requesting a contribution, to be determined by the Lobby3 tokenholder community, to assist with the coalition’s formal establishment. Other DAO representatives also are asking their respective DAOs for contributions. Such contribution would help ensure that Lobby3 would have a seat at the table as the DAO Coalition is formed. Clinamenic is currently listed as the Lobby3 representative within the DAO Coalition and this proposal would aim to render him eligible to represent Lobby3 as a director of the nonprofit entity established by the DAO Coalition, depending on governance proceedings internal to the coalition.

(See forum post for links relating to the coalition)

BACKGROUND

Several months ago Stuttgart (also from CityDAO) approached Clinamenic with an idea to work with Blockchain Association to form a coalition of DAOs. Since then, we have amassed around 30 DAOs and a few non-DAO organizations in this representative body, and have been discussing ways such a body can provide value to the DAO ecosystem. One priority, we have concluded, is lobbying on behalf of the DAO ecosystem, with an emphasis on the variety of ways, especially non-financial ways, that DAOs can improve society and the economy.

We have an active Gitcoin grant, but have not yet been accepted into the Crypto Advocacy category. We hope that this initial funding request will financially enable the coalition to start undertaking efforts which will help us qualify in this category, and become recognized as a public good.

MISSION & VALUES ALIGNMENT

Not only does this particular proposal involve direct lobbying, but also the broader effort of coalition-building could potentially be essential for the DAO ecosystem to coordinate itself and properly respond to regulatory and legislative developments.

SCOPE OF WORK

A simple disbursement of $10,000 (denominated in ETH, at the time of snapshot approval), plus the continued representative involvement of Clinamenic in the DAO Coalition. Clinamenic will remain involved, whether or not this proposal results in any disbursement.

FINANCIAL IMPLICATIONS

Out of ten options of increments of $1,000 presented in the draft proposal, the $10,000 option was most popular. Thus, this proposal is for a $10,000 disbursement, denominated in ETH at the time of approval.

BRAND USAGE

Lobby3’s name and branding elements are liable to be used as part of the DAO Coalition’s wider marketing and advocacy strategy. The specifications of this strategy will be handled by Clinamenic, as a representative of the interests of Lobby3.

SUCCESS METRICS OR KPIS

A successful outcome would be the formation of a legal entity, the approval of non-profit tax designation, and the establishment of any basic marketing/publicity elements such as a website. Any funds leftover from these startup costs will go toward future costs, such as paying researchers to devise policy positions, and lobbyists to advocate on behalf of them.

Moving forward, any policy position drafted within the DAO Coalition will separately seek approval from constituent DAOs. That is, if the DAO Coalition drafts a policy position, it is likely that such a document will be sent out to constituent DAOs for their respective communities to vote on whether or not to endorse them. These details are still to be worked out, and the resulting procedures will be disseminated across constituent DAOs before any endorsement proposals are initiated.

It is worth emphasizing that multi-DAO proposals are largely uncharted territory, and such will constitute one of the challenges the coalition must face after the initial hurdle of fundraising and nonprofit entity formation.

NEXT STEPS

Disburse $10,000 in ETH, to help the coalition with startup costs.

As other DAOs launch corresponding proposals, their links can be shared here for reference.

The same procedure for the last few proposals applies here as well. Once this draft proposal gets 15 likes, or lasts three days, it will move onto active snapshot voting, unless the verdict of the draft proposal vote is that we shouldn’t move forward.

TEAM BACKGROUND

Clinamenic is co-leading Lobby3 and is co-leading the DAO Coalition.

In respect to Lobby3, Clinamenic has worked for retroactive disbursements totaling 3.95 ETH, in areas including governance proposal template formulation, community management and moderation, social media management, partnerships and coalition-building, event hosting/planning, project management (zkID), research and writing (stablecoin report), graphic design, treasury management, bookkeeping, and more.

Clinamenic will likely remain on the multisig for the DAO Coalition, but this has not been formally decided, seeing as the coalition multisig board has not been appointed/elected as of yet.