From Chaos to Clarity: Streamlining Legal and Infrastructure Challenges in the DAO Ecosystem. Research, Toolkit, Product "On-Off-Chain Co" & Education.

[GENERAL] Name and Surname of Main Applicant

Astra Tikas

[GENERAL] Email address of Main Applicant

Catalyst@internetnative.org

Additional Applicants

David Bailey

Saban Göksal

Javier Cervera

Idir Khiar

Vattan PS

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

8

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.” in this field.

This project would love to depend on the cooperation and support of Catalyst and Cardano ecosystem, as they would be the first beneficiaries and stakeholders of our legal advice and research. We would love them to provide us with accurate and timely information about their activities, goals and challenges. We would be absolutely happy to work with you guys as we are looking for such a pilot today actively from the DAO-space. DAOs face a fragmented and uncertain legal landscape, which is the biggest barrier to mainstream adoption.

[GENERAL] Will your project outputs be fully Open Source?

Yes

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.” in this field.

Project will be fully open source.

[METADATA] Category of Proposal

Standards and Regulation

[METADATA] SDG rating

SDG 16: Peace, Justice and Strong Institutions.

Contributing to make the current community into more accountable and knowledgable institution, organization of foundation - however you might want to call it - by providing the community with legal advice, research and strategy to navigate the complex and dynamic regulatory environment in EU. We will also enhance the trust and legitimacy of the Cardano ecosystem, by demonstrating their community commitment to legal compliance and transparency to the public and potential partners.

SDG 9: Industry, Innovation and Infrastructure.

Our project will support the development of a resilient and innovative infrastructure for the Catalyst and Cardano ecosystem, by enabling them to become more compliant and transparent in EU. We will also foster innovation by facilitating the exploration and experimentation of new legal models and solutions for DAOs and blockchain projects. INO general mission is to create value by developing a standard and best practices for governance, scalability, engagement, and compliance for Internet Native Organizations, help reduce legal risks and create a suitable legal foundation for the mass adoption of these organizations. In this way we will see innovation growth not only in developed countries, but all over the world.

[IMPACT] Please describe your proposed solution.

Why Internet Native Organization (INO) registered itself as an NGO, a DAO on August 2022 in Estonia? We saw next things happening in the crypto space:

• After NFT boom the DAO boom started, since 2022 summer until 2023 summer ca 10k new DAOs are created according to DeepDAO data
• Many of these new DAOs are created by anonymous people or accounts which don’t have sometimes any other bigger goal then just raising money
• Crypto already has a negative meaning in the mainstream market because of lot of scams - we would not love to see that happening also with a DAO title, but it is beginning to happen already exactly because of raising money without having mostly any clear legal grounds
• Right now, it feels like the DAO-community is being flooded with legal advice from all corners and also a lot of money is being paid from founders, developers, from communities etc. But a lot of provided services seem to be quick fixes, not really tackling the real issues that web3 developers and DAO builders face. It's like we're being sold band-aids when we need a cure.

So what is the real problem today for the Cardano community and for the any other DAO-community as well?

DAOs and Web3 teams are in a legal black box - structuring, jurisdiction, fiat payouts are all question marks. INFRASTRUCTURE CAN NOT WORK LONG WITHOUT LEGAL CERTAINITY.

We can decode this together.

Our project would investigate such questions in deep and would give answers too:

• Is it possible for a DAO to be a legal entity?
• What type or types of legal entity? For profit / non-profit? What are the main requirements?
• If a DAO cannot be a legal entity, can it be a partnership or another legal form in specific country?
• Is it necessary or advisable for a DAO to be listed in the business register in specific country?
• Does the DAO need a real physical location?
• What is the legal status of a DAO’s blockchain-based decision-making process and/or smart contracts?
• How can the validity and enforceability of the decisions be ensured internally and externally?
• Is it possible for a DAO to make decisions by a general meeting (using blockchain and smart contracts for electronic voting) without an independent board?
• When does a DAO need to register in other countries if it is already registered in one country?
• Which DAO members would be in charge of talking to other regulators like the national financial markets authority and external parties?
• And so on

If you are a DAO member and you feel that this topic is not touching you, please read more, what today the main challenge is: DAO not having legal shields makes it a risky format for its participants. There are actually two levels of additional risk – extended liability and shared liability. First, the liability is not limited to the assets of the DAO but it extends to the personal assets of all DAO members. Secondly, each DAO participant is liable for the actions of other members of the DAO.

DAOs have problems to pay taxes, contributors have problems getting salary, who is liable legally for what exactly in DAO? What if DAO gets sued from from the regulator by saying it doesn’t have the required license? How the money laundering risks are assessed? How to make the payout system more automated and to avoid double-taxation for the end-user?

DAOs do not exist in a legal vacuum. Without any dedicated rules, the work of lawyers is about squeezing DAOs into existing legal categories. This is something DAO participants, DAO builders, and governments must be aware of and this is something towards INO as a non-profit has been working on already a year.

To keep up with the good feeling in the community we really want to dive deep into this and provide comprehensive legal strategy and documentation to fight with these issues.

HOW?

The project is divided into 4 main parts:

1) Research - INO will work with the community to identify and understand the current legal issues and challenges that DAOs face in different jurisdictions. We will analyse the existing guidelines and regulations and how they can help or hinder DAOs. We will also evaluate the pros and cons of various legal wrappers that service providers offer to DAOs. The goal of this part is to create a solid foundation of legal knowledge and awareness for DAOs before they take consult from lawyers or visa versa. We want to help DAOs to define and address their legal problems and to build a path for the future.

2) Toolkit - based on the research, we will develop and propose practical and innovative solutions and tools to make the ecosystem more trustworthy and legally compliant - this documentation will be called shortly “DAO Toolkit”. We will focus on two common types of DAOs:

a) Service DAOs - A service DAO can be seen as a cooperative or a freelancer network that leverages smart contracts and tokenomics to coordinate and incentivize its participants. They are for teams or for subDAOs that want to collaborate on projects or services. Sometimes they do not know how to start or whether DAO is the best option for them and if they still start as a DAO, then next problems rise - they face regulatory challenges depending on the jurisdiction, the nature of the services and the contractual relationships involved.

b) Investment DAOs (current Catalyst Fund is a one example) - Investment DAOs are for teams that want to raise funds or invest in projects - they face huge legal risks or uncertainties. We will provide legal templates, guides, checklists, smart contracts and other resources that can help these DAOs to operate smoothly and safely.

3) Product - our project "On-Off-Chain Co," is a revolutionary protocol designed to establish legally compliant, EVM-based DAOs within the advantageous digital society of Estonia. This protocol serves as the foundation for internet-native organizations, enhancing their efficiency and effectiveness. Built on the robust Safe platform, "On-Off-Chain Co" amplifies its capabilities, enabling the smooth operation of digital organizations. The vision behind this protocol is to create a seamless interaction between users and the digital product, with all actions performed on-chain. Meanwhile, legal compliance is automated in the background, ensuring that all operations adhere to the necessary regulations without requiring manual intervention.

4) Education - we will share our findings and insights with the community through various channels and formats, such as 6 articles (sharing on INO web, Cardano community web), at least 2 Internet Native Show 30 min interviews (youtube, INO web, Cardano web), 2 webinars, 1 workshop. We will interview regulators and legal experts to get their perspectives and advice on DAOs. We will cover topics such as how to manage taxes, how to deal with disputes, how to protect rights and interests, etc. We will also invite feedback and questions from the community and other stakeholders.

The specific activities of each project stage are described more deeply under the activities together with the timeline.

Why we want to start solving the mentioned challenges in EU?

EU offers more legal clarity, innovation support and market access for blockchain than US. EU has a regulatory DLT sandbox, a Markets in Crypto-Assets (MiCA) regulation, an European Blockchain Services Infrastructure (EBSI) network and a single market. EU also has progressive and supportive countries for blockchain and crypto. US has a complex and uncertain regulatory landscape, a restrictive and hostile attitude, a limited and outdated infrastructure and a competitive and fragmented market. US also has conservative and resistant countries for blockchain and crypto. EU is more ready for blockchain organizations.

What kind of jurisdictions we will be focusing on?

We will be focusing first on Estonia as this is where our non-profit Internet Native Organization is located and has the most experience and digital benefits, but also we will be researching other specific jurisdictions like Lithuania (LT), Finland (FI), and Netherlands (NL).

Why to build a product on Estonian infrastructure?

Estonia is an EU country that leads in digital governance and e-services. It offers DAOs many benefits (and especially related any automation product) :

a) E-Residency Program: Estonia offers an e-Residency program that allows non-Estonians access to Estonian services such as company formation, banking, payment processing, and taxation. The program also allows e-residents to manage their business from anywhere in the world.

b) EU Membership: As a member of the European Union, Estonia offers a gateway to the EU market.

c) Taxation: Estonia has a unique corporate tax system where corporate income tax is charged on profit distribution only, not on the profit itself. This could potentially lead to significant tax advantages for a DAO.

d) Advanced Digital Infrastructure: Estonia's superior digital infrastructure, equipped with secure digital identities, paves the way for smooth DAO operations. Its digital services, like e-tax filing, e-banking, digital signatures, and online voting systems, offer a considerable advantage for DAOs, amplifying efficiency and seamlessness. Registering a company online has been taking minutes already for years for the locals, buying house through online-notary is today possible, no need to travel. To build a product on Estonian digital infrastructure is one of the things we are aiming for in this project.

e) Vibrant Startup Scene: Estonia has one of the highest numbers of startups per capita in the world. The vibrant startup scene, coupled with numerous incubators, accelerators, and networking events, offers a conducive environment for DAO builders and operators. Tallinn is a peaceful and innovative capital where you meet doers from all over the world.

The legal research, advice and education will consists of the following parts:

1. Incorporation law. We will advise on the best legal form and structure for the DAO set-up, considering the nature, purpose and activities of the legal DAO. We will also help with the registration process, the drafting of the articles of association and the governance rules, and the compliance with the relevant laws and regulations.
2. Taxation. We will advise on the tax implications and obligations of the legal DAO, both at the corporate and individual level.
3. GDPR. We will advise on the data protection and privacy requirements and best practices for the legal DAO, especially regarding the collection, processing and sharing of personal data of DAO members, users and partners.
4. AML. We will advise on the anti-money laundering and counter-terrorism financing obligations and standards for the legal DAO.
5. Crypto Asset Service Provider (CASP) activity license. If our legal analysis shows that the legal DAO may need an activity license, we would guide how to get the license for the legal DAO (offering crypto-related services, such as exchange, wallet, custody services). It depends of course on the specific case if the regulator accepts the license application, but guidelines for such will be given.

INO has been preparing for this kind of a pilot in the DAO-space since we finished the DAODAY conference and today we are ready with our resources and team, partners.

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

The challenge is legal compliance and transparency, by utilizing expert legal advice, research and strategy, as well as a more automated and transparent payout system strategy. This will bring the following benefits to the Cardano ecosystem:

• boost the trust and reputation of Catalyst and Cardano, by showing their adherence to EU rules and standards.
• lower the legal risks for Catalyst and Cardano, by allowing them to operate in a clear and flexible legal framework that supports their innovation and decentralization.
• increase the efficiency and effectiveness of Catalyst and Cardano, by streamlining their processes and operations, and by reducing administrative burdens.
• inspire and influence other DAOs and blockchain projects in EU and beyond, by showcasing and promoting Catalyst and Cardano as best practices and use cases for legal compliance and transparency in the blockchain sector.
• improve the education quality and access for the Catalyst and Cardano community, by providing them with legal templates and knowledge to operate in EU. We will also create and share legal resources and best practices for other DAOs and blockchain projects.
• support the infrastructure development for the Catalyst and Cardano ecosystem, by enabling them to experiment with new legal models and solutions for DAOs and blockchain projects. We will also foster innovation and creativity in the blockchain sector.

[IMPACT] How do you intend to measure the success of your project?

• The number and quality of legal analyses, structures, strategies, and resources that we deliver to Cardano.
• The level of legal compliance and transparency that Catalyst and Cardano achieve in EU, as well as the reduction of legal risks and uncertainties that they face.
• The level of satisfaction and feedback that Catalyst and Cardano express with the legal strategy and payout system strategy, as well as the adoption by running a community survey.
• The impact and inspiration that this project has on other DAOs and blockchain projects in Cardano and beyond, as well as on the development of the blockchain sector.
• The number and diversity of small businesses, entrepreneurs, innovators, creators and communities that benefit from the services and solutions offered by Catalyst and Cardano, as well as the value and satisfaction that they derive from them.
• As one of the core goals for the Cardano community is to give jobs to people and keep them connected, voting and engaged in the community, this project can be measured with an increase of interest from small community players who are willing to be part of something international and same time without legal risks.

[IMPACT] Please describe your plans to share the outputs and results of your project?

We plan to share the outputs and results of our project through various channels and formats, such as:

• Publishing at least 7 or more open-source legal templates for DAO set-up in Estonia on INO website, as well as on GitHub and on Catalyst website. These templates will include documents such as Articles of Association, governance rules, privacy policy, etc. We will make them open source and free to use for anyone who is interested in DAOs and their legal aspects. We will also provide user guides and FAQs to explain how to use our outputs and results.
• Creating and sharing legal resources and best practices for DAOs and blockchain projects in EU on INO website - called a Toolkit -, on Catalyst community, as well as on other platforms and media outlets that are relevant for the blockchain community. Not only limited to Estonia as we are also conducting research in LT, FI, NL
• Writing monthly articles about this project / pilot.
• Interview legal advisors, community people and key players in the Internet Native Show (every show is 30min).
• Making internet ads to get more users for the new product which is open-source to everyone.
• Establishing and maintaining partnerships with various organizations such as DAO platforms, service providers, regulators, academics, media, etc. to share our project outputs and results and to leverage their resources and networks. We will also seek opportunities to integrate our outputs and results with other relevant initiatives and projects in the DAO ecosystem.
• Project details, monthly progress reports, and Proof of Achievements video will be published on the Catalyst Website at www.projectcatalyst.io and will be publicly available.
• The whole project outcome is helping EU to understand better the real DAO use case and this will get more support and acknowledgement for the future collaboration and research.
• INO is participating in various events such as hackathons, conferences, workshops, etc. to present our project outputs and results and to network and collaborate with the DAO community and other stakeholders. We are also organizing some events ourselves such as meetups, etc. while when we engage with the audience and solicit feedback and suggestions.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

We have the capability to deliver this project with high levels of trust and accountability, because:

Non-profit registered in Estonia as Internet Native Organization (INO) main goal is redefining, reshaping and rebranding DAO in a trustworthy way. That means shortly that we are daily working on researching and creating value by developing standards and best practices for governance, scalability, engagement, and compliance for Internet Native Organizations, help reduce legal risks and create a suitable legal foundation for the mass adoption of these kind of organizations.

INO NGO registered itself as a first real DAO in Estonia August 2022, also organized the first DAO-focused conference, which took place on March 28th, 2023 in Tallinn, Estonia.

INO has been lobbying, talking on stages and pushing Estonian and European web3, corporate and crypto community to understand why DAO is a new way of working in the future - money and collaboration + scaling is there! On the path INO aims to solve legal implications and other risk-related issues that stand up while running or setting up a DAO.

Our organization has been working for a year now because our core team is highly motivated to bring the DAO-solutions to the mainstream. With this proposal we aim to bring important impact not only to Cardano or Catalyst community but to the whole DAO ecosystem worldwide. Within the year we have made direct relationships with regulators in EU, lobbying and explaining to them the current and future issues + potential.

We have a team of founders, advisors, contributors, members, who are experienced and qualified legal experts, researchers, blockchain developers or project managers, who have the skills and knowledge to provide high-quality legal services and solutions for DAOs in EU, but especially in Estonia. Our experts are advising individually on DAO-related topics, licensing and other in different specific areas. Our team is not being afraid of stages or hard questions as we have been researching the DAO-world for a year now and we do understand the problems.

The best thing in addition to the team, is a wide network of DAO-lawyers and DAO-experts in fields like law, blockchain, governance, AI, public sector, open-source data - that is the reason why INO is a fit to work for the community - we are a community! - INO would not represent one law firm or one specific opinion or research, but INO does represent the interest generally of a DAO-community and wants to solve the problems in a bigger scale. INO goals are the same with any other DAO-community that works towards bringing decentralization to the mainstream and giving power back to the people.We have a team of founders, advisors, contributors, members, who are experienced and qualified legal experts, researchers, blockchain developers or project managers, who have the skills and knowledge to provide high-quality legal services and solutions for DAOs in EU, but especially in Estonia. Our experts are advising individually on DAO-related topics, licensing and other in different specific areas.

We have a track record of successful projects and events like completing the first DAO-conference ever DAODAY in Estonia, collecting all the best lawfirms in Estonia together + collecting DAO-builders internationally and discussing the DAO-setup, and satisfied clients in the blockchain sector, such as DAOs, token issuers and crypto service providers, who can attest to our professionalism, reliability and competence. In addition to that Astra and Vattan have been organizing events in collaboration with regulators and market players.

INO bridges the gap between innovation, regulation, and the end-user. Regulators value us and want to learn with us, end-users want to inform us, lawyers want to exchange knowledge with us, DAOs want to join us in this interesting journey.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

The main goals of our project are:

1. Research: To conduct comprehensive research on the legal issues and challenges that DAOs face in different jurisdictions, particularly in Estonia, Lithuania, Finland, and the Netherlands. We aim to create a solid foundation of legal knowledge and awareness for DAOs.
2. Toolkit Development: To develop a "DAO Toolkit" based on our research findings. This toolkit will provide practical and innovative solutions, legal templates, guides, checklists, smart contracts, and other resources to help DAOs operate smoothly and safely.
3. Product Development: To build "On-Off-Chain Co," a revolutionary protocol designed to establish legally compliant, EVM-based DAOs within the advantageous digital society of Estonia. This protocol will automate legal compliance in the background, ensuring that all operations adhere to the necessary regulations without requiring manual intervention.
4. Education: To share our findings and insights with the community through various channels and formats. We aim to educate DAO members on how to manage taxes, deal with disputes, protect rights and interests, and more.

To validate the feasibility of our approach, we will use the following methods:

1. Community Engagement: We will work closely with the community to identify and understand the current legal issues and challenges that DAOs face. We will also invite feedback and questions from the community and other stakeholders.
2. Pilot Projects: We will initiate pilot projects to test the effectiveness of our tools, resources, and strategies. The results of these pilot projects will provide valuable feedback and insights that can be used to refine our approach.
3. Expert Review: We will engage external experts to review our work and provide independent validation of our approach. This will include regulators and legal experts who can provide their perspectives and advice on DAOs.
4. Performance Metrics: We will establish clear performance metrics for each of our goals. These metrics will allow us to measure our progress and determine whether our approach is working.

Our organization, the Internet Native Organization (INO), has a proven track record of success in advancing the adoption of Internet Native Organizations by fostering a code-driven, community-oriented, equitable governance model. We have achieved several milestones, including the incorporation of the first DAO in Estonia, hosting the biggest DAO-related conference (DAO Day Estonia), and starting a series of interviews with people who are making waves in the internet-native economy and DAO ecosystem. We are confident that our experience and expertise will enable us to successfully achieve the goals of this project.

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

1) Research

Our work will involve collaborating with the community to discover and comprehend the legal problems and difficulties that DAOs encounter in various legal systems. We will examine the current rules and standards and how they can support or obstruct DAOs. We will also assess the advantages and disadvantages of different legal solutions that service providers propose to DAOs.

• MS 1. Preparation. Month 1. We will define the scope and objectives of our research. We will also design the research methodology and tools such as surveys, interviews, focus groups, etc. We will also recruit and train our research team and participants.
• MS 2. Development. Months 2-5. We will conduct the research using our methodology and tools. We will collect and analyse data from various sources such as literature, documents, websites, platforms, etc. We will also interact with various stakeholders such as DAOs, lawyers, regulators, academics, etc. to gain insights and perspectives on the legal aspects of DAOs.
• MS 3. Delivery. Months 6-7. We will synthesize and present our research findings and recommendations. We will create a comprehensive report that covers the legal issues and challenges that DAOs face, the existing guidelines and regulations that apply to DAOs, the pros and cons of various legal wrappers that service providers offer to DAOs, and the best practices and solutions for DAOs to overcome their legal problems and achieve their goals. We will also create a summary and a infographic that highlight the key points and messages of our report.
• MS 4. Closing. Month 8. We will evaluate the impact and feedback of our research on the DAO ecosystem. We will also update and improve our research based on the lessons learned and new developments in the legal field.

2) Legal toolkit

We will create a legal toolkit for DAOs that can help them navigate the legal aspects of their operations. The toolkit will include tools such as a legal checklist, a legal templates collection, a legal risk assessment, links and guidelines.

• MS 1. Preparation. Month 1: We will define the scope and features of the legal toolkit based on our research and feedback from the previous part. We will also design the user interface and user experience of the toolkit to make it intuitive and engaging.
• MS 2. Development. Month 2-5: We will develop the legal toolkit. We will also integrate the toolkit with our legal templates and other relevant platforms and resources. We will also test the toolkit with some pilot DAOs to ensure its functionality and reliability.
• MS 3. Delivery. Month 6-7: We will launch the legal toolkit on our website and GitHub repository. We will also create a user guide and a FAQ section to explain how to use the toolkit and what to expect from it.
• MS 4. Closing. Month 8: We will evaluate the impact and feedback of the legal toolkit on the DAO ecosystem. We will also update and improve the toolkit based on the lessons learned and new developments in the legal field.

3) Product in Estonian business register: On-Off-Chain Co

We will create a product that allows DAOs to register as legal entities in Estonia using e-residency. The product will enable DAOs to access various benefits and opportunities offered by Estonia which described before.

Our project will be executed in several key stages, each with its own set of milestones during 6 months and tasks. We have allocated a budget of 50,000 EUR for this project. Here's a detailed breakdown:

Milestone 1 - Conceptualization and Planning (0-1 month)

Main tasks:

• Define project scope and objectives
• Identify key stakeholders and establish communication channels
• Develop a detailed project plan

Budget allocation: 5,000 EUR

Milestone 2 - Technical Infrastructure Development (1-2 months)

Main tasks:

• Define technical requirements and architecture
• Develop the initial version of the protocol
• Implement secure blockchain transactions for DAO operations

Budget allocation: 10,000 EUR

Milestone 3 - MVP Development and Testing (2-4 months)

Main tasks:

• Develop the MVP of the protocol
• Conduct thorough testing to identify and fix bugs
• Gather initial feedback from stakeholders and make necessary adjustments

Budget allocation: 25,000 EUR

Milestone 4 - MVP Launch and Initial Operation (4-5 months)

Main tasks:

• Launch the MVP of the protocol
• Monitor its operation and gather feedback
• Make necessary adjustments based on feedback

Budget allocation: 5,000 EUR

Milestone 5 - Review and Future Planning (5-6 months)

Main tasks:

• Conduct a comprehensive review of the project
• Gather and analyze feedback from stakeholders
• Develop a plan for future development based on feedback and review findings

Budget allocation: 5,000 EUR

4) Education.

We will engage with various stakeholders in the DAO ecosystem such as developers, users, investors, regulators, academics, media, etc. to raise awareness, educate, collaborate, and solicit feedback on our project.

• MS 1. Preparation. Month 1: Creating a communication strategy and plan for our project. We will also identify our target audiences, channels, messages, goals, metrics, etc.
• MS 2. Development. Month 2-5: Executing our communication plan by creating and distributing various types of content such as blog posts, articles, videos, newsletters, webinars, workshops etc. We will also participate in various events to showcase our project and network with the community.
• MS 3. Delivery. Month 6-7: Monitoring and measuring the results and outcomes of our communication activities. We will also collect and analyze the feedback and suggestions from the community to improve our project and products.
• MS 4. Closing. Month 8: In the eighth month, we will summarize and report our communication achievements and challenges. We will also thank and acknowledge our supporters and contributors. We will also plan for the future of our project and products.

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Research

Deliverables and Outputs:

• Research methodology and tools such as surveys, interviews, focus groups, etc.
• Comprehensive report that covers the legal issues and challenges that DAOs face, the existing guidelines and regulations that apply to DAOs, the pros and cons of various legal wrappers that service providers offer to DAOs, and the best practices and solutions for DAOs to overcome their legal problems and achieve their goals.
• Summary and infographic that highlight the key points and messages of our report.

Intended Outcomes:

• Improved understanding of the legal issues and challenges that DAOs face.
• Identification of the best legal solutions and practices for DAOs to overcome their legal problems and achieve their goals.
• Increased awareness and knowledge of DAOs among the legal community and the general public.

Measurement:

• Number of stakeholders involved in the research process.
• Quality and relevance of research data collected.
• Number of downloads/reads of the report and summary/infographic.

Legal toolkit

Deliverables and Outputs:

• Legal toolkit for DAOs that includes tools such as a legal checklist, a legal templates collection, a legal risk assessment, links, and guidelines.
• User guide and FAQ section that explains how to use the toolkit and what to expect from it.

Intended Outcomes:

• Improved legal compliance and risk management among DAOs.
• Increased adoption and usage of the legal toolkit among DAOs.
• Increased awareness and adoption of DAOs among the legal community and the general public.

Measurement:

• Number of downloads/uses of the legal toolkit.
• Feedback and satisfaction ratings from users of the legal toolkit.
• Number of mentions and references to the legal toolkit in the legal and DAO communities.

Product in Estonian business register: On-Off-Chain Co

Deliverables and Outputs:

• A product that allows DAOs to register as legal entities in Estonia using e-residency.
• Secure blockchain transactions for DAO operations.

Intended Outcomes:

• Improved legal status and recognition of DAOs in the global business ecosystem.
• Increased access to various benefits and opportunities offered by Estonia.
• Increased adoption and usage of the product among DAOs.

Measurement:

• Number of DAOs registered using the product.
• Number of transactions processed on the blockchain.
• Feedback and satisfaction ratings from users of the product.

Education

Deliverables and Outputs:

• Communication strategy and plan for our project.
• Various types of content such as blog posts, articles, videos, newsletters, webinars, workshops, etc.
• Participation in various events to showcase our project and network with the community.

Intended Outcomes:

• Increased awareness and knowledge of DAOs among the legal community and the general public.
• Increased engagement and collaboration among stakeholders in the DAO ecosystem.
• Increased support and adoption of our project and products.

Measurement:

• Number of stakeholders engaged.
• Reach and engagement metrics of our communication activities.
• Feedback and satisfaction ratings from stakeholders.
• 
  

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

Budget Breakdown in ADA

1) Research - 114,000 ADA

• Legal experts and consultants consultancy: 57,000 ADA
• Travel expenses for research purposes: 19,000 ADA
• Legal research materials and tools: 19,000 ADA
• Reporting, conclusions, analysis of the project: 19,000 ADA

2) Toolkit creation - 228,000 ADA

• Legal experts and consultants work: 114,000 ADA
• Development of legal templates, guides, checklists, and smart contracts: 38,000 ADA
• Testing and validation of the DAO Toolkit: 15,200 ADA
• Reporting, conclusions, analysis of the project: 22,800 ADA
• Marketing: 38,000 ADA

3) Product development - 190,000 ADA

• Development of On-Off-Chain Co protocol: 121,600 ADA
• Testing and validation of the protocol: 38,000 ADA
• Legal compliance automation: 19,000 ADA
• Reporting, conclusions, analysis of the project: 11,400 ADA

4) Education - 76,000 ADA

• Creation and publication of at least 6 articles: 11,400 ADA
• Production of at least 2 Internet Native Show interviews: 15,200 ADA
• Hosting of at least 2 webinars: 19,000 ADA
• Conducting of at least 1 big workshop: 19,000 ADA
• Reporting, conclusions, analysis of the project: 11,400 ADA

The full amount of this budget in ADA is 608,000 ADA

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

• It is based on a realistic and transparent budget that reflects the scope, complexity and quality of the project, as well as the skills and experience of the project team. The project is long and work is also deep and that is why the cost goes high.
• It is competitive and reasonable compared to other similar or alternative projects or services in the market, and it offers a high return on investment for the Cardano and ecosystem. We will not buy in law firm services who sell DAO set-up or who market their brand with innovation and growth. We deliver together with previous research, not just selling some opinions or templates. INO has gathered the best consultants, but will get also reasonable prices which is often not offered to random contacts in the market.
• It is aligned with the objectives and priorities of the Cardano ecosystem, and it contributes to its long-term vision and mission. After this project is done, Cardano will become much much more popular fostering this kind of transparent and needed innovation frameworks.
• It delivers tangible and intangible benefits for the Cardano ecosystem, such as legal compliance and transparency, trust and reputation, efficiency and effectiveness, innovation and growth, influence and inspiration.
• Our team will work 8 months together with the Cardano community and that will bring more collaborations also in the future, will make the community more active, bring new ideas and will in the end once again develop the infrastucture because infrastructure is not only about tech, but also legal. If no framework, the infrastructure might also fail.

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.

I Accept