Given a lot of foundation are based in Zug that could be also to be evaluated, one of this thread reported the expected cost of all the solution… anyone can pin it here again ?
Expensive AF, complex in the compliance and legal side, very strict regulations … and very low shielding of Liability to natural persons uptaking any roles in the Foundation, from what I could understand.
But I would say the Expensive AF, both to setup and maintain, is the killer.
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Hey all, great discussion!
Full Disclosure: I work at Agora we are helping other DAOs with DUNA compliance.
I wanted to inject a data point around one of the objections to the DUNA. RE: the cost forecast
Costs for compliance can be broken down into two line items:
- Legal - This is your lawyers and accountants. Predominantly, this is your DUNA Administrator.
- Technical - This is the software used by both the community and the DUNA Administrator.
While I can’t predict the future with any better accuracy than the rest of you, I do have a different (maybe better?) view of the technical costs. I expect software should lower the cost of compliance over time for both line items, not increase it. At least for the base/vanilla case of the DUNA. That is, if you hug the legislation (primarily, W.S. 17-32-101 through 17-32-129) as written, then you should be okay to make assumptions about costs staying at least flat, or surprising for the better, by falling over time. If you create a bunch of custom governance policies about membership, voting types, or other rules, that could complicate and increase costs for RADIX in the long-run.
The above is completely speculative, and limited more to the technical component. With respect to the technical services of DUNA administration, I can’t speak to what the lawyer bill would be. But to the extent that your Administrator gets leverage from technology, I would expect the same price forecast.
I’m also happy to chat with anybody that wants to discuss further.
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Thanks for the experienced-based / real world insight.
I see that https://www.agora.xyz/ is primarily implemented (and for obvious reasons) within EVM-based networks.
Do you have a feel for how receptive they would be to setting up a framework on Radix? I’m sure they probably would if the cost were sufficient, but I was mostly just trying to gauge the sentiment since you referenced you were already employed there.
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Do you have a feel for how receptive they would be to setting up a framework on Radix?
We would definitely entertain a discussion about the feasibility and associated cost.
There are tradeoffs, that could raise/lower the costs. The biggest factors include a) the urgency for on ledger execution b) how identity works on Radix (we have bring-your-own-identity solution) and c) the dynamism and scale of the DAO Membership and voting power functions.
I see your twitter handle in your bio, if you follow @AgoraGovernance, we can DM to discuss if that is easier.
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I see people here have written doubts about The SEC and feel the need to emphasise how thoroughly smashed they were in the Ripple case….imho.
This is a good start to do your own research https://www.reuters.com/legal/us-judge-says-sec-lawsuit-vs-ripple-labs-can-proceed-trial-some-claims-2023-07-13/
The most important ruling was that Judge Torres ruled Ripple’s XRP sales on public cryptocurrency exchanges were not offers of securities under the law, because purchasers did not have a reasonable expectation of profit tied to Ripple’s efforts.
Those sales were “blind bid/ask transactions,” she said, in which buyers “could not have known if their payments of money went to Ripple, or any other seller of XRP.”
As such Radix has as much as any other L1 platform to worry about .
So I am not worried about any SEC confrontation if we locate in Wyoming .
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