Starting Your Own DAO 🙏 Connor Emma

so the three big ones that i want to talk to you about when you're actually thinking about forming a dial are the legal rapper what is the legal structure of your dow the second thing is fund management and trust how are you going to responsibly handle people's funds how are you going to maintain that level of trust when you're dealing with people's money it's very important and the third thing is governance how do you how do you plan on doing governance you want to do token weighted voting like the protocol dows right click save we have a very very manual process um in discord which i will talk to you about in a little bit so first most important thing out of these three is are you offering a security in your dow is what you're doing constitute an investment contract and if you don't know the answer to that you do not want to find out the hard way okay i'm sure everybody knows the sec and the fed are the best friends of crypto um allegedly but it's and if you aren't offering an investment contract that's okay if you are offering a security it's fine but you just need to know what proper legal structure you're going to have in your dow so one super common type of legal structure is the traditional hedge fund structure they call it the gp lp fund structure where the gps are the people managing the funds and the lps are the more passive investors so it's totally fine if you choose that as your legal wrapper for your dow uh just know that that can be prohibitively expensive for a lot of people that could probably run you around 40 or 50 000 in legal fees so keep that in mind that might be prohibitively expensive for some folks just doing a casual investment group as friends so that's one type of legal wrapper another type of legal rapper is the special purpose vehicle or spb and that is a lot simpler and a lot cheaper and very very simply put an spv is just a business that buys things and then dies after a predetermined period of time and then all the things that the business bought get liquidated and then they go back to the original people who put the capital in or your dow members so that's another way of doing it the third way of doing it i don't really recommend this but you can do everything completely anonymously send everything through tornado cash and just pray that you don't get audited and if you're a federal agent in the audience i'm totally kidding by the way so uh don't do that uh it's probably not a good idea uh if you plan on not wanting to get audited so uh those are your options for the legal rapper so basically the big question is are you offering a security uh if you are what kind of legal rapper do you want around your dow or alternatively what level of personal liability are you willing to incur so no question you have to answer to yourself right now it's just something to think about so that's the legality factor that's the biggest one the second is fund management so how do you maintain trust when you're working with people's funds how do you manage people's funds responsibly for us at right click save dao the answer was gnosis safe so for those of you that don't know what dosa safe is it is a smart contract wallet that requires the approval of multiple people to do anything if you want to spend money or send a transaction or anything like that you can use gnosis safe so when we started the towel in the first place and we took in all the admission fees we said hey we have a smart contract wallet safe that we're going to use to manage the funds it requires 7 out of 12 signatures for us to do anything with it this is to prevent bad actors from running off with all the funds and never hearing from them again so that's our solution gnosis safe worth noting it's not perfect so if you decide to use it for anything just know that nososafe does not work with all types of smart contracts and we're very sad about that because we still can't claim our airdrop for looks if anybody is familiar with that so if you're here and you're from nososafe just send us all your looks and it'll be fine uh just kidding so uh that is the fund management aspect there are a lot of different ways to manage people's funds you can use token weighted voting but we just decide to do it more manually with gnosis because it works and uh and the last thing i wanted to talk to you about is just the governance aspect of your dow so how do you plan on doing governance so for us the process is very very very manual almost to the point where you probably can't call it autonomous but it works for us and our method of what we do for when we want to buy an nfc sell an nft make changes to how we do things maybe we want to put out bounties for people to come and do work for our dow or contribute or build tools or so on and so forth so we have a very manual process for that we just have people uh basically draft up a google doc and the proposal has what they want to do in the dow maybe they want to buy something sell something they want us to get a tool for the dow something like that we all talk about it in discord and then we just give thumbs up or a thumbs down we call a vote and if we get enough thumbs up then the proposal is good it's considered passed in the signers for the no safe wall to take care of everything else and if it gets too many thumbs down then no harm no foul we don't do anything so as you can see this process is very very manual there is a lot of room for improvement in the investment dial specifically the protocol dials don't really have this issue as much because they leverage smart contracts a lot more to do decision making but in the investment dow world and i think for dows in general there's a lot of white space that can be filled in and a lot of opportunity both for developers and people that actually want to start their own dow so right now our dow is very simple we just buy nfts hang on to them and uh hope for the best everybody gets a free ride to the moon right um but i think daos are going to become more than just that i think in just this year alone you're probably going to see dows become the vehicle for web 2 money to be deployed into the next generation of web3 companies d5 protocols and assets and if i had to guess that sort of big fund uh dow is probably going to be called right click save capital and it's probably going to be started by a couple of the people in this room and one of them might be on the stage right now but that's a totally different talk i know i've thrown a lot at you here so uh if we have time do we have time for questions one one or two questions so we have time for one or two questions so if anyone wants to ask me anything uh fire away hit me with the hard stuff uh before you ask yes i will refer you to coinbase and no i don't know why we listed the petcoin uh so just to get that out of the way but if there are no questions my name is connor emma thank you so much for taking the time to talk with me about dows and i'm happy to take any questions you might have