Playbook for Creation of SEC Exempt DAOs on Cardano

[GENERAL] Name and surname of main applicant

Logan Panchot

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[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] Summarize your solution to the problem (200-character limit including spaces)

We'll establish compliant investment entity on Cardano, documenting the entire process, research, and best practices to empower future investment clubs.

[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.”

We are working with accountants and lawyers to create this playbook. We have identified the accountant/tax professional that will work with us on this: https://www.darienadvisors.io/ and are currently narrowing down options for legal representation.

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

We aim to create a compliant Cardano based entity for investment projects. We'll openly document and share all research, processes, and insights with the public.

[SOLUTION] Please describe your proposed solution.

We will create a compliant investment club on Cardano, actively managing governance and treasury functions on the blockchain.

The use case we will be doing this with is on-chain real estate investment by leveraging the progress already made by the GoKey (https://gokey.finance/) project and community.

We're partnering with an experienced blockchain lawyer for legal guidance and an accountant for tax advisement and will extensively document our process, findings, and learnings for the Cardano community's benefit.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

Creating and incorporating compliant investment clubs can be a complex challenge. Our project will provide valuable case studies and insights, simplifying the process for the Cardano community. By sharing our documented experiences, we aim to empower others to navigate similar endeavors effectively and with confidence.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Ability to Deliver:

Our team has a proven track record of delivering on proposals within the Cardano ecosystem, as demonstrated by our past participation and successful outcomes in Cardano Project Catalyst. Notably, we have succeeded in delivering on the Clarity DAO Infrastructure proposal passed in fund9. https://projectcatalyst.io/funds/9/f9-daos-less3-cardano/clarity-dao-infrastructure

Here's how our team ensures high levels of trust and accountability in project delivery:

Experience and Expertise:

• The Clear Contracts team members possess extensive experience and expertise in their respective domains, including decentralized governance, smart contract development, UI/UX design, and Cardano ecosystem integration. We have been working in the Cardano governance niche since 2020, and have shipped multiple products that help Cardano communities.
• The GoKey team has been building in the Cardano Ecosystem for 2 years and has laid the foundation to make history by purchasing property through a DAO structure. Their team is comprised of real estate experts and web3 enthusiasts.
• We have a deep understanding of the underlying technology and best practices, enabling us to make informed decisions and deliver reliable solutions. We are adding an accountant and lawyer to our teams through this proposal in order to make a playbook for Cardano projects to create compliant investment clubs.

Transparent Communication:

• We provide weekly development updates, transparent progress reports, and hold interactive sessions to address questions, gather feedback, and ensure alignment with project goals.

Commitment to Documentation:

• Our team produces comprehensive documentation, including technical specifications, user guides, and project reports. These are all made public for streamlined user adoption and to make it easy for stakeholders to review and verify the project's progress.

Adherence to Best Practices and Standards:

• We follow industry best practices, adhere to established standards, and conduct thorough testing and security audits to ensure the reliability and robustness of our solutions.
• We prioritize the security of DAO treasuries and stake pool operations, implementing safeguards and risk mitigation strategies to protect funds and maintain trust.

Past Success and References:

• Our successful track record in delivering on previous proposals in Cardano’s Project Catalyst serves as a testament to our ability to fulfill our commitments and achieve desired outcomes.
• Communities using our platform already can be found here (https://www.clarity.vote/), and are a great reference for our past work.

By combining our experience, transparent communication, documentation practices, adherence to standards, and past successes, we are confident in our capability to deliver the proposed project with high levels of trust and accountability.

Validating our Approach is Feasible:

We have conducted initial research into the plausibility of creating a playbook to create compliant investment clubs that operate on the Cardano blockchain and both accountants and lawyers have said this is feasible.

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: GoKey - Initial Consultation and Incorporation Options:

• Conduct an initial consultation with legal experts for GoKey.
• Explore and assess various incorporation options for GoKey.
• Document the findings and recommendations.

Milestone 2: Incorporation Documents and Open Sourcing:

• Prepare and finalize all necessary incorporation documents for GoKey.
• Ensure compliance with regulatory requirements.
• Open source the incorporation documents for public access and transparency.

Milestone 3: Project Launch

• Launch GoKey subDAO as a Cardano Native community real estate investment club.
• Implement governance and treasury management for both projects in accordance with operating agreement.

Milestone 5: Documentation Finalization and AI Resource Creation:

• Conclude documentation of the entire project, including processes, learnings, and best practices.
• Open source all project documentation for the Cardano community.

[RESOURCES] Who is in the project team and what are their roles?

Clear Contracts: Creators of governance, community, and treasury management infrastructure for Cardano that GoKey will use to run operations and governance actions.

• Logan Panchot: Logan is a recent graduate at Stanford University and has been part of the Catalyst community since fund4. Logan is a deep believer in the potential of decentralized communities to create a better world. At Clarity, Logan is responsible for business operations, community growth, and client adoption. (https://www.linkedin.com/in/logan-panchot/)
• Justin Schreiner: Justin has a background in Computer Science and is a Plutus Pioneer. At Clarity, Justin is responsible for business operations, talking with users, and implementing improvements to the platform. (https://www.linkedin.com/in/justinschreiner/)
• Chris Borders: Chris is a lawyer and advisor to blockchain projects. He has over 30 years of experience practicing law. His experience in the blockchain industry began in 2015 when he joined what would become Chainlink. He remained at Chainlink until 2018, eventually serving as their interim General Counsel. Currently, Chris spends most of his time in the Cardano ecosystem, advising other projects including Liqwid, Indigo, and SundaeSwap. (https://www.linkedin.com/in/christopherjborders/)

GoKey: GoKey is on a mission to help everyday people access the wealth building benefits of property ownership.

• Craig Immel: Craig founded GoKey in 2021, building on 20+ years of tech-forward real estate and construction management experience. He is committed to leveraging Cardano's unique blockchain architecture and tooling to drive massive improvements in real estate and housing finance and investment markets. Craig holds a Master's degree in Real Estate and Construction Management from the University of Denver. (https://linkedin.com/in/craigimmel/)

Darien Advisors: a human-centriccrypto tax & advisory firm.

• Cameron Browne: Cameron is a partner at Darien Advisors. We see a void between the uncharted cryptocurrency space and the established technical, taxation, and regulatory frameworks of today. We bridge this gap for our clients using collective knowledge, experience, and intuition. We're a bunch of DeFi & ReFi degens, Web3 Contributors, DAO Participants, NFT collectors, and P2E gamers. Our team is paid in crypto, holds multiple wallets, and loves going down the rabbit hole.

Lawfirm TBD: We are currently having consultation to find the best lawfirm to join this initiative.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

ADA price assumption $0.30

Legal Fees 50 hrs $350/1,166 ADA per hr:

58,000 ADA

Accountants 30 hours $100/333 ADA per hr:

9,990 ADA

Documentation Development: 70 hours $60/200 ADA per hr:

14,000 ADA

TOTAL: 81,990 ADA

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

• Enhanced Compliance Knowledge: The project's investment in legal expertise will contribute to a better understanding of compliance within the Cardano community. This knowledge can be applied to other projects, ensuring they navigate legal requirements effectively.
• Ecosystem Expansion: By enabling compliant investment clubs on Cardano, your project contributes to the expansion of the Cardano ecosystem. New investment opportunities attract more users and investors, increasing the ecosystem's overall vibrancy.
• Community Empowerment: The open-sourcing of documentation and best practices empowers community members to create their own compliant organizations. This self-sufficiency fosters a sense of ownership and innovation within the Cardano community.
• Long-Term Viability: Building a foundation for compliant investment clubs ensures the long-term viability of Cardano as a platform for real-world financial applications. This adds credibility and attractiveness to Cardano for potential investors and partners.
• Knowledge Sharing: Your project's commitment to sharing research, findings, and insights helps educate the wider blockchain and cryptocurrency industry. This, in turn, can draw attention and investment to Cardano as a leading blockchain platform.
• Reduced Legal Risk: By addressing legal compliance challenges, your project reduces the legal risk associated with blockchain-based investments on Cardano. This can attract risk-averse investors and institutional players to the ecosystem.
• Innovation Hub: As your project pioneers new use cases like on-chain real estate investment and decentralized venture capital, Cardano becomes an innovation hub. This reputation attracts innovative projects and individuals, further enriching the ecosystem.
• Global Collaboration: Through partnerships and collaborations, your project establishes Cardano's presence in the global blockchain landscape. This fosters international collaboration, sharing of ideas, and cross-border investments, benefiting the ecosystem's global reach.
• Scalability and Adoption: Your project's success in incorporating real-world entities sets an example for future projects, encouraging them to scale and adopt Cardano as their blockchain platform of choice.
• Trust and Credibility: By adhering to legal compliance standards, your project enhances trust and credibility within the Cardano ecosystem. This trust factor can lead to increased adoption and partnerships with established organizations.

[IMPORTANT NOTE] The Applicant agrees to Fund 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