Call for Payment Facilitation Service Providers

dxDAO
1

Call for Payment Facilitation Service Providers

Overview:

Due to the decentralized nature of DXdao, issues arise around paying contributors across the globe. This signal proposal calls for facilitators to offer their services to DXdao and pass a proposal on-chain to be approved as an official DXdao payment facilitator.

Details:

A number of contributors face challenges working for the DAO, as a variety of legal and tax questions arise regarding invoicing and VAT collection. This puts excessive burden and cost on contributors. If a solution is at all available, it is likely to differ per each country.

As DXdao grows, it requires more robust links to the real world. Facilitating payments to contributor is a core requirement for the functioning of the DAO. And such an activity should be geographically resistant and distributed, to avoid a single-point of failure. DXdao should facilitate payments to ensure contributors are able to collect payment easily.

CFP:

This signal proposal is a call for proposals for service providers to offer their services to DXdao, the following information should be included in any such proposal:

Taxes Amount or % of taxes incurred
Fees Fees charged by service provider
Jursidiction Jurisdiction of incorporation of service provider
Banking / FIAT offramping Access to offramping crypto to FIAT?
Banking jurisdiction Jurisdiction of banking partners
Service type Ad-hoc or top-up

In the interest of geographical independence, it would be preferable to have a number of service provides across the globe. Preferably, these would not be in tax havens (OECD / EU non-cooperative jurisdictions for tax purposes) as that would complicate accepting payment for contributors.

Moreover, due to volume being the key driver for such service providers to be sustainable, DXdao shall choose a service provider in the following regions:

  • Americas
  • Europe
  • Asia

After a service provider has been approved by the DAO through on-chain governance, DXdao will be carrying the service provider fees for contributors. Contributors are, of course, free to use other services at their own cost.

9 Likes
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+1 to this, payment can be very complex, especially for those without legal background or understanding. Having various options for different payment facilitation across various jurisdictions would be a huge help to onboard new developers and reduce the stress of working out how to get paid most effectively and legally.

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Great job on this! I can only second @dlabs on the difficulties that arise regarding accepting payment from a DAO as a contributor from Europe. The regulatory landscape here remains highly uncertain. If anything, it seems to go towards a restrictive landscape rather than a permissive one.

One question:

  • Will the service provider also be able to state any requirement for the contributor seeking payment facilitation through the service provider? One such requirement could be that the contributor has its own legal entity which will pay for social insurance/employee fees, etc. for the contributor as an example. This is so that the service provider can remain a payment facilitator and not accidentally become an employer for the contributor.
4 Likes
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Yes, I belive this should be up to the discretion of the payment facilitators. However, personally I would recommend each contributor make use of the existing Contributor Stipend to setup a limited liability legal entity and receive payment through that!

4 Likes