March 17th, 2022
What’s Happening Now
The top stories shaping the crypto economy.
DAOs Find Their Legal Foothold
Legal Framework for Non-U.S. Trusts in Decentralized Autonomous Organizations [dYdX Blog]
A new framework published by dYdX lays out the methodology by which DAOs could form a Non-US trust in order limit liability for members, and conduct off-chain activities.
In this structure, the DAO sends assets from its treasury to a trust, which is overseen by trustees and an enforcer, and brought into existence via written agreement.
Trustees are subject to fiduciary duties to act in the best interests of the trust.
“The Purpose Trust solves the main issues facing DAOs regarding entity structure: (1) limiting liability for DAO participants, (2) providing a legal form to engage in off-chain activity, and (3) clarifying existing tax obligations.”
The point below indicates a major change in the way individuals are identified in this emerging legal system. Instead of physical addresses and social security numbers, the new international standard could be something close to what is proposed here:
The Trustees and Enforcer provide Twitter handles, email addresses and Ethereum addresses used for the multi-sig rather than requiring physical addresses.
The Twitter handle establishes identity via unique written thought, length of time since the account was open, and connections to other people. Email serves as a direct, private, decentralized means of communication. Ethereum addresses serve as a direct, public-but-not-necessarily-doxxed means of financial transfer.
With these three, an individual can establish their identity and participate financially.
There is much more covered in the article, including tax liability, and the roles of the trustees and the enforcer.
Yuga Labs Eyes Expansion
Bored Ape startup plans virtual land sales, APECoin token to kickstart metaverse gaming project [The Block]
Yuga Labs appears to be in the planning stages for an expansion into the metaverse. A semi-recent pitch deck leaked on Twitter (the deck was intended for a16z, the venture capital firm), which showed plans to launch a metaverse gaming concept called MetaRPG. The game would feature NFT IP from Yuga’s collections, which players could use to outfit their characters (based on NFTs each player owns).
Notably, the deck included Yuga’s revenue numbers. The company earned $127M for 2021, and projected $455M of revenue for 2022. Most of their current revenue comes from royalties on secondary market sales of its NFT collections. However, the majority of the 2022 revenue projection comes from virtual land sales.
Business is Booming
Why there’s never been a better time to start a business [Axios]
On a broader market note—there has been much coverage around rising rents, geopolitical conflict, and the faltering U.S. economy. But amid all this chaos, several factors coming together at once might make this the best time to start a business.
It’s official: The 2010s will go down as a lost decade in American entrepreneurship [Economic Innovation Group]