Contracts for DAO Council Members

Snapshot Proposal – Contracts for Members

Introduction: The RugRadio DAO (hereinafter ‘RDAO’) is a Not-For-Profit Organization (NFP) based in the Cayman Islands. The status of the DAO is governed by the RugRadio Community, with a recent inauguration proposal that passed to elect seven (7) new members on the DAO Council.

Contracts are important. Having had the chance to review the current Contract proposed with the aid of legal counsel from the Core Team and having received some suggestions for how to amend it in order to better serve the DAO and Council Members, we aim to maintain legal and regulatory compliance and preserve the DAO Bylaws and framework. The RDAO Council has for responsibility to provide services for a fixed term of one (1) year in exchange for a compensation, making them contractors interacting with the DAO. In order to ensure protection and rules to be followed by both the Council and the DAO, a Contract, which is legally binding material, shall be signed and approved by each Contractor (Council Member) in order to safely proceed with the services.

This proposal correlates with the RDAO Council Framework, setting out guidelines for the Council to follow and respect. However, signing a contract is a protection measure for everyone; if a member is not respectful and acts in wrongdoing, omission, or any other harm, a Contract will enable protection or action to be taken. The Contract Proposal has been submitted to the RDAO Holders on May 22nd 2023, and since has gained attention and valuable feedback to proceed with the Contracts, but requires approval through Snapshot vote to be implemented.

Procedure: Working initially within the Council, we have drafted a Contract and have submitted it to the Legal Team at RugRadio. After receiving some feedback and criticism to enhance the document, the Council has decided to use RugRadio’s Legal Team to draft the Contract professionally and efficiently for us to ensure a quality product in time and in essence.

Purpose: Digital Assets, Web3, DAOs and NFTs are a new emerging and unregulated area. This means that there can and will be laws and regulations that will be put in place to manage this field.

To manage risk in such a vulnerable area, Contracts will ensure that all parties involved in RugRadio are safe from potential disasters or new regulations. We want to avoid the worst.

The Contract will legally bind points as follows, but not limited to:

• Engagement Responsibilities, • Services from the Council, • Earnings and Cost Issues, • Suspension and Removal, • Warranties and Indemnification, • Jurisdiction, • The Legal Nature of a Council Member; and • Severability.

The official link to the Contracts RDAO Proposal and Community Open Commentary