LeXpunK Initial Projects for Feedback

Proposals
1

Hi All - Below is the first slate of proposed projects for the LeXpunK Builder Defense DAO.

We are submitting these to the community with a signaling poll for feedback and welcome your thoughts, which can be posted here or on an ongoing basis in the LeXpunK forum, on additional pursuits and considerations as we pursue the initial slate of projects below. Each project will be fleshed out with additional qualitative criteria and specifications when the working group applications process is announced.

As you can see below, most projects have a budget range. The Multisig will decide the amount of actual payment to be allocated to each project based on the actual work product produced and we will be utilizing Coordinape to pay the bounties to those who worked on the projects.

Proposed Spend on Contributed Funds - Tranche 1 (start of Q4 2021 - end of Q1-2022)

- Operations | $150k (fund coordinator pay ($3k per project) & misc. expenses)

- DAO Structure & Risk Mitigation Bounties:
o Build DAO Coop / Labor Union Model | $15k min, up to $150k
o Model Foundation / DAO back-to-back docs / structure | $15k min, up to $100k
o Limited liability for DAOs, forking California nonprofit unincorporated association statute | $20k min, up to $100k
o DAO tax safe harbor (cross-category) - proposal to establish a safe harbor for smart contract systems that if they pay a ā€˜greater ofā€™ %-based or flat tax, they will fit into safe harbor for certain tax-related risks
o Guidance paper regarding DAO legal claim standing, attorney client privilege issues, and proposed model structures and parameters for proper DAO legal defense funding | $25k min, up to $60k

- Model Legislation/Regulation Bounties:
o Section 409A amendment to improve tax treatment of vesting token awards + fork of yearn vesting contract that complements the amendment proposal | $25k min, up to $50k (legal) ; $50k flat (smart contract)
o Fork of Hester Peirce Safe Harbor (address lack of smart contract coverage & other issues) | $20k min, up to $100k
o Amendments to Beyer Crypto Bill (carve-out algo stablecoins, improve desecuritization process, better - clarity on not covering DeFi) | $10k min, up to $50k
o DAO tax safe harbor (cross-category) - proposal to establish a safe harbor for smart contract systems (i.e., if pay a ā€œgreater ofā€ %-based or flat tax, a safe harbor for certain tax-related risks will apply)

- Policy/Legal Position Paper Bounties
o Position paper on why DeFi smart contract transactions do not meet definitions of ā€˜swapā€™ | $50k min, up to $200k
o Why Worker-Driven DeFi communities are different from VC-backed communities and legal ramifications | $10k
o DeFi Functional Overview (functional overview, review against risk frameworks, discuss implications/application of CEA) | $50k
o Position paper on the MiCA Commissionā€™s proposal, its potential application to DeFi protocols and basis for why its application should be limited in scope and recommendations / modifications of the existent rules to cover risks posed | $30k min, up to $40k
o Workable AML/KYC Compliance Model - compliance for regulated entities at fiat on and off-ramps | $15k

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0 voters

2

One project that I donā€™t see listed that I thought was on the Yearn/Lido/Curve proposals was development of a framework for lawyers being retained by and advising DAOs. I think there are a lot of questions around duties, privilege, professional liability, that need to be considered to allow lawyers to safely operate in the space.

3

Hi @gcosteloe ā€“ this is the last proposal in the first category - it is defense focused but we can include broader discussionā€¦

4

Man. I totally missed that. Was in a different place.

Good thing Iā€™m a lawyer and have that attention to detail thingā€¦

4 Likes
5

Another project I didnā€™t see listed was an educational outreach for members of the U.S. Congress. This would help them realize what they are actually voting on and could be easily updated weekly, monthly or quarterly.

6

Okay so the strategy is twofold here ā€“ category 3 above (policy/position papers) is intended as our outreach/education section but we definitely see the need for more real time engagement and efforts through the advocacy working groups (currently US and Euro but these can expand and create sub-groups). To this end, we are working on options to fund operations and work product here and deputize leads of these working groups so we can scale these efforts. Let me know of any feedback or additional thoughts here and thank you for your comments!

7

Another potential project: Political fundraising with blockchain. This is the last state-by-state legal update Iā€™ve seen. Since that article, California banned crypto fundraising at the state level, but I do not believe this applies at the federal level (and havenā€™t checked in a while to see if theyā€™ve updated their legislation).

Perhaps it would be good to have someone update and maintain the status of crypto fundraising in the 50 states, as well as federally and perhaps outside the USA (where permissible), so that we can provide a resource to political allies who could be supported by the rest of the crypto community?

Full disclosure: Iā€™m working on a separate project that will allow candidates to raise funds via a blockchain in a manner that complies with campaign finance laws. Itā€™s my belief that we can win over politicians by co-opting them with money, a time-honored strategy.

8

Hi @SH_Brennan my name Is Ricardo, I was referred here by Jacob Gadikian to make contact with you so I can draft and submit a proposal to the Osmosis Dex community to direct funds towards the Lexpunk Builder Defense DAO initiative to assist in your lobbying efforts. Please can you add me to your Telegram group so we can speak fluidly, my handle is @thecryptodrive

9

@SH_Brennan Iā€™m going to start tackling this. Iā€™ve had some discussions with my local bar. I think because of the massive number of jx, the best first step will be a multipage primer for lawyers in every jx to consider to allow them to start working through the process. Iā€™ve spent a lot of time thinking about some of the big issues here so that probably isnā€™t a bad starting point.

Let me know if thatā€™s okay and Iā€™ll formally put my name wherever you want me to.

1 Like
10

NM I see the thread for applications. Iā€™ll put something in today.

11

Would a primer on single-member LLCs for DAO contributors fit into the Operations or the Structure/Risk Mitigation categories? Iā€™d love to work on that and get that moving so it gets eyes before the new year, and itā€™s a topic Iā€™ve seen requested somewhat frequently from US contributors. Would also open the door for similar summaries for other requested jurisdictions.

12

Yes, will message, have one as a WIP - very excited to collab on this!!

1 Like