Since its inception, Shiba Inu has grown far beyond its origins as a simple meme token, evolving into a dynamic ecosystem with a diverse range of products, multiple tokens, and a blockchain network. This impressive expansion has been propelled by a dedicated team of experienced professionals and countless independent contributors, all working together to push the project forward. Today, this collective effort has given rise to the Doggy DAO—a decentralised community that plays a pivotal role in steering the project’s future. And with such a rapid growth and commitment to decentralisation, the emergence a formal legal structure for the Doggy DAO was simply a matter of time.
The article by Shytoshi Kusama suggests for employing a Cayman Islands foundation as a legal wrapper, which is an excellent choice for many reasons. However, we believe that a simple foundation would not offer the Doggy DAO the level of protection it needs, for reasons we will discuss below. Therefore, we recommend enhancing the proposed structure by incorporating an additional legal layer, specifically a DAO LLC. The proposed Doggy DAO structure is founded, among other things, on the above Shytoshi Kusama’s article and this tweet by Lucie.
This framework introduces a multi-layered legal wrapper structure specifically designed for the Doggy DAO. It goes beyond merely incorporating entities, offering a strategic approach to regulatory compliance through progressive decentralisation and efficient operations.
In summary, DAObox proposes a structure involving two key components: a Cayman Islands ownerless foundation and a Marshall Islands DAO LLC. Each entity would have distinct responsibilities and areas of focus. Together, these entities aim to facilitate the governance and decentralisation of the Doggy DAO.
A significant advantage of the proposed structure is that it offers the Doggy DAO two layers of corporate protection, at both the foundation and DAO LLC levels. Additionally, both entities can operate as non-profit, ensuring minimal reporting and accounting requirements. Please refer to the high-level structure depicted in Fig*. 1* below.
*Fig. 1*
As mentioned above, each legal entity would be responsible for its own areas. The division of responsibilities between the two entities could be as follows: