DevX AG - DXdao SDA

Overview

This proposal suggests DXdao entering into a service development agreement (SDA) with DevX AG, based on the recently passed DXdao proposal Call for Payment Facilitation Service Providers.

Issue

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. Moreover, it is increasingly difficult to find banks that will bank crypto funds for EU based companies. Making it tedious for contributors who use a company as a legal wrapper, to bank and access their funds.

Details

DevX AG is a Switzerland-based dev shop which connects web3 professionals with companies and facilitates payment between the parties. Switzerland is a crypto-friendly, neutral and sovereign jurisdiction in the European Economic Area (EEA), with early adoption and clear guidelines from the regulatory authorities (FINMA) on crypto as well as a crypto-friendly banking industry.

DevX AG is able to offer DXdao access to the off-chain world and FIAT without having to compromise on decentralization or the need to incorporate an entity.

What DevX AG offers:

  • Access to EU market
  • FIAT payments
  • Engage in contractual relationships with third-parties (lawyers, auditors etc.)
  • Represent the interests of the DAO in case of contractual violations

This proposal sends an initial $100k to DevX AG. These funds shall be credited to DXdao - and accessible for DXdao to spend through on-chain proposals explicitly referencing that the payment shall be fulfilled by DevX AG. Developers working through DevX AG can simply create on-chain proposals sending their funds to the DevX AG address.

Proposal Info

Taxes 7.7% Swiss VAT
Fees USD 3000 / month + 5% of volume
Jurisdiction Switzerland
Banking / FIAT off-ramping Yes
Banking jurisdiction Switzerland
Service type Both ad-hoc and top-up

Fees

DevX AG charges the following fees:

USD 3000 / month + 5% of volume transacted

DevX AG will issue reports showing financial movements of funds deposited by DXdao. In the case of a termination, DevX AG shall return any outstanding funds to DXdao.

Tax

7.7% Swiss VAT (Value Added Tax) will apply to all funds transferred from DXdao to DevX. (Note: the average VAT rate in Europe is 21%)

Funds

This proposal sends an initial $107.7k (100k +7.7% VAT) to DevX AG.

FAQ

Is DevX AG an official DXdao company?

No, DevX AG is a private company in Switzerland servicing DXdao.

How will DevX AG spend the funds of DXdao?

DevX AG will exclusively use funds as directed by DXdao through on-chain proposals.

Can I receive my contributor payments from DXdao as a bank transfer through DevX AG?

Yes.

Do I, as a contributor, have to pay for the DevX fees?

No. As outlined in the Call for Payment Facilitation Service Providers, if DXdao passes the proposal with DevX AG - DXdao shall carry the costs for facilitating the payments.

Is DevX AG a for-profit company?

While DevX AG is incorporated as a regular for-profit company, the fees it charges to DXdao are merely to be self-sustainable. These costs are to cover legal and tax compliance as well operational costs such as off-ramping crypto to FIAT, banking costs etc.

Does DevX AG have control over the the DXdao?

No, DevX is merely acting as a dev-shop for DXdao and acts based on on-chain proposal passed by the DAO. Any code developed through the DevX AG will be open sourced, under the license DXdao requests.

Will DevX AG receive REP in the DAO?

No. To remain impartial DevX AG will never claim any REP. Contributors who work for DXdao through DevX shall request their own REP separately, given that it is a non-transferable token.

11 Likes

This is really great step forward for us European workers. My banks wont accept any money that touched crypto. This will remove a lot of the headache i been struggling with. Will def consider using DevX AG as the middle man to be paid through. Thank you!

8 Likes

This is really good! I’ve been following along the process and discussing this initiative and can only say that it is well-researched and will also lower the threshold for European contributors.

If the proposal passes, do you have an ETA for DevX AG to start being able to provide services on behalf of DXdao?

8 Likes

I would love this! The invoices need a VAT number and am forced to invoice other contributors and they shouldn’t be troubled for these, however nice they are.

9 Likes

As absurd as it is, getting paid legally by a DAO is very difficult for Europeans. This solves a real problem, great idea.

7 Likes

Absolutely great service I think. I know I would use it and it helps us scale too, as I know some people can be deterred from joining the DAO because of the legal burden, not having a legal entity yet, so this should be a plus for us.

8 Likes

100% support this and will use this service if it passes. One of the biggest headaches is worrying about how you are getting paid or if you legally can, I’m sure this will be a huge weight off of our European contributors.

7 Likes

Thanks for your comment.

Once the proposal passes (8 days from submission on mainnet), I would estimate 2-3 weeks to fully onboard and operational.

5 Likes

This would make my life so much easier for the reason already stated above (off-ramp, acceptance from banks, VAT, etc.) Thanks for putting this initiative forward!

8 Likes

The proposal is now live on both:

Mainnet and Gnosis Chain

We appreciate any votes in support of the proposal.

5 Likes

Not much to be said that has not already been said so I will just concur that I am very happy about this and support it.

4 Likes