In case a DAO is not truly decentralised and does not have a legal form (“Service arm entity”) around it, it should be considered “at risk”, meaning its members are bearing significant liability. Though, Aurora DAO was established in a decentralised manner and is aiming to further decentralise its’ operations, additional measures to comply with international laws would solidify Aurora DAO positions.
A “Service arm entity” in whatever jurisdiction it’s set up, can provide the required legal basis to interface with the authorities. Moreover, the legal entity put in place helps shielding liabilities from the participants of the DAO. The draw back is that the legal wrapper requires compliance with the laws of the applicable jurisdictions which can restrict the DAO to meet its full purpose and results in an administrative overhead.
With the purpose to develop Aurora platform an ownerless foundation company Aurora Foundation was established. This Company has legal personality, can act like a trust, is inherently flexible, has a truly global location and, at least as a matter of Cayman Islands law, it is tax neutral. The Cayman Islands foundation company will act as “Service arm entity” for Aurora DAO.
Recognize Aurora Foundation (Cayman Islands) and it’s subsidiary Aurora DAO Ltd. (BVI) as legal service arms of Aurora DAO and entitle these companies to conduct all necessary legal and operational actions to develop the Aurora project built on blockchain technology;
Assign Campbell Law as Director and SILVERSIDE MANAGEMENT LTD as Secretary and Supervisor of Aurora Foundation (Cayman Islands) and assign Campbell Law as Director of Aurora DAO Ltd. (BVI) with annual remuneration of USD 40.000 from 1 February 2022 (with operational budget as source of funds).
Assign Optimum Finance Consulting LLC as a financial outsourcing team for transaction execution of all DAO resolutions from DAO wallets with compensation of USD 2.000 per month from 1 April 2022.
Transfer 15.000 (fifteen thousands) NEAR for operating needs (operational budget) of Aurora Foundation (Cayman Islands) and it’s subsidiary Aurora DAO Ltd. (BVI).
Recognize wallets https://app.astrodao.com/dao/aurora-foundation.sputnik-dao.near and https://app.astrodao.com/dao/aurora-dao-bvi.sputnik-dao.near as official on-chain DAO wallets of Cayman Islands and BVI companies.