OIP-42: Cayman Foundation and 8M tokens for Season 1

Google Doc of proposal is located here: https://docs.google.com/document/d/1oSbFYqjX27La_fLdNiYGsvDk2hame18I4gZRzdU2w70/edit#heading=h.43xajztr0tkh

Goal: This proposal creates a Cayman Islands foundation under the control of the DAO’s tokenholders and funds 2 roles to serve on the foundation at a total cost of approximately $30,000 USD annually. The DAO will hire external parties to serve these roles for legal and tax efficiency. Changes the Charter budget for Season 1 to 8 million $ORANGE.

Single Point of Contact: (Only 1 individual for GovC to reach out with questions, and to represent at TownHall.) huh.eth

Sponsors: Include folks planning to work on this proposal. Do not include folks who are just supportive of this proposal. Oparrott.eth, iamdonho

Description: There are two separate and distinct actions being proposed in this OIP. Cayman Foundation: Create a Cayman Island based foundation with 1 Board of Director, 1 Supervisor, and 1 Secretary as required by the Cayman Islands foundation laws. This role requires that people serving these roles be KYC’d under the Cayman legal framework and will serve for a minimum of 1 year term. The Board and Supervisor roles allow the tokenholder’s votes and wishes to be applied to the actions of the Foundation. The Foundation will also purchase liability insurance for both members if needed (this will increase costs beyond the listed $30,000). These two members will be selected after the passing of this proposal by the Governance Committee based on legal and tax considerations. The $30,000 includes the costs of creating and maintaining the foundation entity annually. Reduce the amount of tokens allocated to Season 1 to 8 million $ORANGE: Passing OIP-42 will amend the charter to change this token allocation. The change in allocation has been approved by the Treasury Committee.

Benefits: Cayman Foundation roles: In order to have a legal DAO entity, my research showed that the Cayman Islands foundation format (an owner-less legal entity) is a good fit for our needs, and would allow us to enter into contracts and agreements with partner organizations (like L1s). However, the law requires that at least 2 people serve at the Foundation level. Ideally, it should be staffed with experienced DAO members living outside the US, but can be staffed by professionals who live on the Caymans (this depends on the tax and compliance benefits to the DAO). The purpose of these roles is to make sure the Foundation is performing according to the will of its members. Reduce the amount of tokens allocated to Season 1 to 8 million $ORANGE: Seasons 0 has shown that we expect to be more token-efficient than originally projected, and therefore reduces the number of tokens allocated to Season 1.

Success Metrics: KPIs before proposal: DAO Foundation entity: 0 Governance token budget for Season 1: 15 million KPIs after proposal: DAO Foundation entity: 1 Governance token budget for Season 1: 8 million Success Confidence: (If this proposal was executed 100 times, how many times will it meet its goal?) 100%

Duration: Start: Season 1 End: Cayman Foundation roles: Until the Foundation is dissolved. End: Reduce the amount of tokens allocated to Season 1 to 8 million $ORANGE: End of Season 1

Tokens Requested: (Treasury control) (Treasury Guidance) $ORANGE Total: 8 million For Team Leads: 0 For Proposal Goal: 8 million $USDC Total: Approximately 30,000 annually For Cayman professional services company: 30,000

RISKS: (Open to All Members)

COUNTERPOINTS: (Open to All Members)