Marshall Islands Incorporation

Incorporation It is proposed that the DAO is incorporated as a Marshall Islands Not-for-profit DAO. This will enable the DAO to leverage the flexible corporate structure, income and capital gains tax regime and multi-member decision process that is facilitated in that jurisdiction. Why incorporation is important Finalizing incorporation will allow the DAO to formalize its business operating structure by allowing structural and operational risks to be addressed and managed, appropriately. It will also enable the DAO to contract as its own legal person, independent from its members and beneficiaries.

As an unincorporated entity, the DAO may be treated as an unincorporated partnership under the laws and regulations of many countries. In a partnership, each individual has unlimited liability - which is the legal obligation of company founders and business owners to repay, in full, the debt and other financial obligations of their companies. In the event of a material regulatory, or legal, change of affairs impacting NFTs, DAOs or the cryptocurrency industry in general, all DAO members could be left financially exposed.

Lastly, by incorporating, the DAO will be more equipped to ensure the ongoing custody of its existing assets and interact with third parties to manage and protect these going forward.

https://docs.google.com/document/d/1LoaSLzkaD0MbaWSoNmIrwKx69mm-qkvlAQGcH4DgWlg/edit?usp=sharing