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Current Stoner Cats’ token holders should understand the organizational options available to the DAO and be able to select the option that best fits their vision for what the DAO will become. In order to partner with legacy institutions (Orchard Farm, Netflix, Disney, and the like) the DAO will need to create an entity that can legally sign and execute contracts.
Before the DAO moves forward in making the choice on what to create, token holders should define what the ethos of this DAO is in order to best carve out where Metawood Studios DAO is heading.
What is the main focus/ethos of Metawood Studios DAO? Do we want to organize in a way to collaborate with IRL entities, or stay in the realm of a social club?
Depending on the answer to the above question, how should Metawood Studios organize it’s legal structure?
If the DAO’s choice is to not become an official studio (i.e. remain on chain with no legal wrapper and coordinate collective ownership/facilitate member cooperation (votes), then the best option for organizing is:
Don’t set up an entity at all. This option keeps Metawood Studios as more of a social club than a business entity able to sign and execute contracts. This also means we will be unable to enter into contractual agreements with legacy institutions i.e. Gimmicks partnership with 6th Wall. “Many courts and lawyers would describe the relationship between members of a DAO and their investors as the default “general partnership.” Legally speaking, a general partnership puts every stakeholder of a DAO as liable for any debts or legal actions that the DAO may face” (if an agreement is made despite the DAO not having a legal wrapper)
BUT
If the DAO’s future is to become a platform for emerging creators where collaborations are made according to token voters, this would require the DAO to organize a "legal wrapper" that acts as a bridge or node between the decentralized world of token voting/smart contract processes and legacy institutions in their centralized construct. This 'legal wrapper' entity would be connected to the entity-less DAO and would offer members of the DAO a certain level (unknown level at this time) of legal protection through the entity.
Otonomos through their Otoco legal tool- will spin up a Delaware or Wyoming LLC through the OtoCo company assembly smart contract. Activation is instant without loss of legal validity (after a payment of 39 DAI from our multisig Gnosis Safe wallet).
In choosing this option, Otonomos generates an on-chain entity on ethereum seconds*.* The DAO is separate from this entity and controls the LLCs multi-sig wallet. **Governance (voting/proposals) would occur on chain or designated off-chain proposal and voting tool through the DAO tool stack and those votes would govern how the LLC interacts with legacy institutions or partnerships in need of traditional legal contracts.