Polywrap Foundation Setup Proposal

Summary

We propose that the Polywrap DAO form a legal entity in the Cayman Islands called the Polywrap Foundation.

Motivation

The choice of the Cayman Islands was advised by our U.S. legal team, DLx and our Cayman Islands counsel, Walkers Global. The advantages of having a foundation in the Cayman Islands are as follows:

Flexibility: The Cayman Islands company law does not require any directors or officers of the foundation to be a resident in the Cayman Islands. A Cayman Islands foundation is also not required to have members, but provides the flexibility for WRAP holders to direct the actions of the Foundation by providing notice to the Foundation Director of proposals approved by the DAO.

Incorporation: Incorporation fees are low and the process to set up the foundation would only take a few days.

Tax: Cayman Islands foundations are tax neutral.

Requirements

The Polywrap DAO will be setting up the foundation with assistance from Walkers Global.

Cayman Islands Foundation Representatives

The DAO has already approved the following reps for the entity to be formed:

• Registered Office / Secretary
• Director
• Supervisor

The role of the registered office is mainly administrative. They allow us to meet the requirement of having a physical location in the Cayman Islands and to receive mail such as legal notices.

The role of the Director is to manage the foundation on behalf of the DAO. The DAO will be voting on proposals which the Director will be responsible for executing, such as signing legal documents.

The supervisor plays a similar role to the Director. They also supervise the Director to ensure that the Director is doing their job.