The following outlines a signal proposal for a contributor stipend towards individual legal and tax advice, and eventual legal entity formation and maintenance.
DXdao is a fully on-chain DAO with no legal entity, which exposes active DAO participants to layers of legal and regulatory risk, especially when respective participants are also acting outside a legal entity (the main purpose for which is to limit the liability of its members). As such, DXdao should do as much as possible to ensure its contributors remain covered from any legal and regulatory risk and encourage the formation of individual contributor legal entities. Additionally, DXdao should cover the costs the individual contributors incur to do so.
This stipend should cover the following costs:
- Legal / Tax review of income and how to correctly declare it
- Eventual costs for incorporating a legal entity, if advised to do so
Contributor Entity Formation and Maintenance Stipend
This stipend covers up to $5,000 in fees for legal and tax advice, including any eventual entity formation costs for DXdao contributors. In addition, this proposal covers up to $500 in annual entity maintenance fees.
DXdao contributors are responsible for claiming this stipend in a separate forum post and on-chain proposal other than their worker proposal. Please note that the legal stipend funding requests will require prior review and verification by the ContributorX, where a legal quote / invoice shall be presented to verify the actual costs incurred.