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.
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.
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.
|Taxes||7.7% Swiss VAT|
|Fees||USD 3000 / month + 5% of volume|
|Banking / FIAT off-ramping||Yes|
|Service type||Both ad-hoc and top-up|
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.
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%)
This proposal sends an initial $107.7k (100k +7.7% VAT) to DevX AG.
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?
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.