This is all super exciting but to be honest I do not even know if I am qualified to make a proper decision for the future of the DAO on this matter.
It’s an expensive proposal and a first time the DAO would be making an equity investment. Lots of questions on a first read.
- Should the DAO even be making such investments? Is that part of its mission?
- How can we know that this is a good investment?
- How can we be sure that the DAO delegates have no conflicts of interest with OpenBox or Intercap or any other beneficiary of this proposal?
- This imo complicates the relatonship between the DAO and the foundation as to me it sounds like the DAO is paying for the investment but the foundation manages it.
- As others mentioned the foundation was not built with investments in mind (at least to my understanding). Are the current directors even okay with this? And how much more extra work would it be for them? Also how many more expenses would the foundation have and who would pay for them?
- What legal risks exist to the foundation and to the DAO through such an action?
So with all these questions in mind, I wonder why the need for this proposal?
Is it the urgency point that @cap mentioned above?
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I was curious about some of the legal since it is a different type of investment than the Endowment managed fund:
•who will perform the DD, if any?
•who will draft and/or review the legal documentation for the proposed investment?
•verify compliance with Caymen Islands laws that may be applicable to Foundations and potentially the investment (e.g. Cayman Islands Economic Substance Law)?
•while the foundation is the legal vehicle for the DAO to enter into real world legal agreements - I recently published a report detailing how legal risks can lead to unmitigated exposure & threat to governance - will the foundation directly own the equity or will the DAO authorize the foundation to establish a holding company (as proposed in my report) used to isolate this investment/equity from other DAO/Foundation assets (i.e. treasury)?
Great discussion on today’s All Hands call!
The call surfaced broad support for the OpenBox proposal, positioning ENS to back OpenBox as a non-exclusive registrar and strategic partner for TLD tokenization—pending further clarity on technical architecture, operational scope, and legal structuring. Ongoing discussion in the forum will address outstanding questions from delegates.
For full meeting notes, see @cap’s minutes here.
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I posted a list of FAQs on this discussion in this topic: OpenBox Inc Investment Proposal - FAQ
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