DAO Structure for Latin American Community Hubs

[GENERAL] Name and surname of main applicant

Rodrigo Gonzalez

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

Individual

[GENERAL] Co-proposers and additional applicants

Yaqueline Escobar

Fernando Orue

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

7

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

Yes

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

We propose creating a legally structured non-profit DAO using Clarity DAO for governance and NMKR for NFT membership, enabling structured community participation and decentralized decision-making.

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

No

[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.”

No dependencies.

[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

All the resources generated—including DAO governance rules, membership NFT issuance, and legal strcuture of DAO—will be publicly available under an open-source license. This ensures the Paraguay Cardano community and others can audit, use, and improve the system, allowing it to be the gold-standard for running community hubs in a decentralized manner.

[METADATA] Horizons

DAO

[SOLUTION] Please describe your proposed solution

Context:

The Paraguay Cardano community faces challenges in establishing a sustainable, transparent governance system to enable decentralized decision-making, membership participation, and community growth. Without a structured, decentralized platform, community engagement and project development are hindered.

Proposed Solution:

We propose establishing a non-profit DAO that integrates Clarity DAO for decentralized governance and NMKR for NFT-based membership. The DAO will enable democratic decision-making, participation, and accountability for community projects.

Key Features of the Solution:

1. Legal Framework: We will create a formal, legal structure in compliance with Paraguayan law, allowing local projects to operate with legitimacy and security.
2. Clarity for Governance: Using Clarity’s transparent, decentralized platform, community members will propose, vote, and execute decisions on important initiatives, ensuring participatory governance.
3. NFT Membership with NMKR: NMKR will handle the issuance of NFT memberships, allowing community members to hold verifiable NFTs as proof of participation. Membership tiers, based on contribution and engagement, will be implemented through NFTs.
4. Decentralized Treasury Management: The DAO will implement a decentralized treasury system where all expenditures are community-governed and fully transparent, ensuring accountability.
5. Educational Resources and Workshops: The team will provide training for the community on blockchain, governance, and NFT usage, ensuring all members understand the tools available to them.
6. Growth and Collaboration: The DAO will foster partnerships between local developers, international organizations, and the wider Cardano ecosystem.

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

This project will significantly enhance the Paraguay Cardano community’s involvement in global initiatives by establishing a robust decentralized governance model. The DAO will foster a transparent and participatory environment for managing local projects while leveraging NFT technology to encourage active membership.

Impact on the Cardano Ecosystem:

• Decentralized Governance: The implementation of Clarity DAO-based governance will showcase a scalable model for Cardano-based DAOs globally, ensuring transparency and community-driven decisions.
• NFT Membership Model: By leveraging NMKR’s NFT system for membership, the project will provide a replicable example of how NFTs can be used to encourage participation and engagement in decentralized communities.
• Community Empowerment: This initiative will allow the Paraguay Cardano community to become more organized, attract new projects, and collaborate with the wider Cardano ecosystem.
• Long-term Sustainability: The decentralized governance structure ensures that the community can make decisions and manage funds long after the initial funding, making the project self-sustainable.

[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?

Capability to Deliver the Project

Rodrigo Enmanuel González Alonso leads this project with extensive experience in legal advisory. He has worked on multiple projects, ensuring legal compliance and efficient governance structures. His expertise in law is critical for forming the non-profit DAO in compliance with Paraguayan law.

Key Team Members:

1. Rodrigo Enmanuel González Alonso (Project Lead & Legal Advisor):
2. Rodrigo will oversee the entire project, ensuring that the DAO is properly established and compliant with legal regulations. With a strong background in legal advisory, he brings the skills needed to navigate regulatory challenges and ensure transparency.
3. Fernando Orue (Legal Advisor):
4. Fernando will assist Rodrigo in drafting and implementing the legal framework. He has significant experience in legal governance structures and will ensure that all DAO operations are compliant with local regulations.
5. Yaqueline Escobar (Legal Advisor)
6. Yaqueline will assist Rodrigo in drafting and implementing the legal framework. She has significant experience in legal governance structures and will ensure that all DAO operations are compliant with local regulations.

Steps to Ensure Trust and Accountability

• Legal Compliance:
• The DAO will be registered as a non-profit in Paraguay, ensuring full compliance with local laws. The project lead, Rodrigo González, and his legal team will ensure that the legal framework is established to safeguard the funds and community members' rights. Regular legal audits will be conducted to ensure ongoing compliance.
• Decentralized Treasury Management:
• To ensure transparent fund management, the project will implement a decentralized treasury with utilization of multi-sig public wallet. All financial transactions and decision-making processes will be recorded on the blockchain, ensuring traceability and accountability. Community members will have the ability to audit all expenditures.
• Quarterly Financial Reporting:
• The DAO will provide quarterly financial reports, detailing the use of funds, milestones achieved, and future projections. These reports will be publicly available, offering full transparency to the Cardano community.
• Clarity DAO for Transparent Governance:
• The Clarity platform will be used to manage proposals, voting, and decision-making within the DAO. By enabling decentralized governance, all significant financial decisions will be voted on by community members, ensuring collective accountability.
• Feasibility Validation:
• The project’s feasibility will be validated through step-by-step deployment:
• Initial Legal Framework: Completed in the first phase, ensuring the legal formation of the DAO.
• Clarity DAO Governance Testing: Governance processes will be tested on a small scale before the full rollout to ensure the system functions as intended.
• Community Feedback Loops: The DAO will conduct workshops to engage the community, ensuring continuous feedback and adjustments to the governance framework.
• NMKR NFT membership issuance
• Auditing and Compliance:
• Independent third-party audits will be conducted periodically to ensure that = financial flows, and governance protocols are secure and functioning as expected. These audits will be shared with the community for review.

This structure ensures a high level of trust and accountability, with clear processes in place to manage funds responsibly and validate the project's feasibility. The involvement of legal experts guarantees compliance with Paraguayan law, while the use of decentralized tools ensures transparency and community involvement.

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

Milestone 1: Legal Formation & Initial Setup (25% of funds - 25,000 ADA)

Timeframe: Month 1-2

Objective: Establish the legal foundation for the DAO and begin development.

Deliverables:

• Register the DAO as a non-profit in Paraguay.
• Prepare the legal framework for community governance.

Milestone 2: NFT Membership Launch (25% of funds - 25,000 ADA)

Timeframe: Month 3-4

Objective: Launch NFT membership through NMKR integration.

Deliverables:

• Create and issue NFT memberships to participants.
• Establish membership tiers based on contributions.
• Provide training on how to use NFTs for governance.

Milestone 3: Clarity DAO Integration & Governance Launch (25% of funds - 25,000 ADA)

Timeframe: Month 5-6

Objective: Integrate Clarity and enable decentralized governance.

Deliverables:

• Complete integration of Clarity for governance proposals and voting.
• Hold the first community vote on governance rules.

Final Milestone: DAO Operations & Sustainability (25% of funds - 25,000 ADA)

Timeframe: Month 7

Objective: Scale DAO operations and prepare for long-term sustainability.

Deliverables:

• Onboard new members and projects through the DAO.
• Launch decentralized treasury management.
• Develop a long-term funding strategy.

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

Rodrigo Enmanuel González Alonso - Project Lead & Legal Advisor

• Role: Project Manager and Legal Advisor for the DAO establishment, focusing on governance structuring, legal compliance, and project coordination.
• Responsibilities:
• Overseeing the entire project, ensuring legal registration and compliance with Paraguayan law.
• Leading the formation of the governance model using Clarity DAO for decentralized decision-making.
• Managing relationships with stakeholders, ensuring community participation and transparency in governance processes.
• Credentials:

Yaqueline Escobar - Community Engagement & Membership Onboarding

• Role: Responsible for engaging the community and managing NFT membership onboarding using NMKR.
• Responsibilities:
• Coordinating community outreach to onboard members into the DAO.
• Managing workshops and educational activities to inform community members about the DAO and governance processes.
• Overseeing the issuance of NFT-based memberships through NMKR and ensuring active member participation in governance.
• Credentials:

Fernando Orue - Legal Support & Compliance

• Role: Legal Advisor, responsible for supporting the legal structure and ensuring compliance with Paraguayan regulations.
• Responsibilities:
• Assisting in drafting and implementing the legal framework for the non-profit DAO.
• Ensuring all governance operations comply with legal standards.
• Conducting legal audits of the DAO’s processes to ensure transparency and accountability.
• Credentials:

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

Key Cost Categories:

1. Legal Formation and Setup

•Establish the legal structure of the non-profit DAO in Paraguay, including legal fees, document preparation, and consultations.

2. NMKR Integration for NFT Membership

•Develop and implement an NFT-based membership system, using NMKR to mint and manage memberships.

3. Clarity DAO Governance Setup

•Implement the DAO governance model using Clarity DAO, including smart contract development for decentralized voting and governance mechanisms.

4. Operations and Sustainability

•Focus on creating a sustainable operational model, including marketing, community engagement, and ensuring technical maintenance of the DAO.

Milestone Breakdown

Milestone 1: Legal Formation of Non-Profit DAO (Months 1-3)

Objective: Legally form the non-profit DAO in Paraguay and ensure full compliance with local regulations.

• Legal Fees & Consultations: 10,000 ADA

• Document Preparation and Filing: 7,000 ADA

• Regulatory Compliance: 5,000 ADA

• Administrative Costs: 3,000 ADA

Total for Milestone 1: 25,000 ADA

Milestone 2: NMKR NFT Membership Integration (Months 4-6)

Objective: Integrate NMKR to issue NFTs for DAO membership and manage onboarding of users through NFTs.

• NMKR Integration & Development: 8,000 ADA

• NFT Minting & Membership Setup: 7,000 ADA

• Marketing & Community Engagement: 6,000 ADA

• Administrative Costs: 4,000 ADA

Total for Milestone 2: 25,000 ADA

Milestone 3: Clarity DAO Governance Setup (Months 7-9)

Objective: Set up decentralized governance using Clarity DAO, including smart contract development for voting and governance mechanisms.

• Clarity DAO Setup: 12,000 ADA

• Governance Process Documentation: 5,000 ADA

• Workshops & Community Training for Governance: 5,000 ADA

• Administrative Costs: 3,000 ADA

Total for Milestone 3: 25,000 ADA

Milestone 4: DAO Operations & Sustainability (Months 10-12)

Objective: Ensure the DAO operates efficiently with long-term sustainability, focusing on community engagement, marketing, and operational maintenance.

• Operations & Maintenance (Technical & Administrative): 10,000 ADA

• Marketing & Community Engagement: 7,000 ADA

• Workshops & Events: 5,000 ADA

• Project Review & Final Reporting: 3,000 ADA

Total for Milestone 4: 25,000 ADA

Total Project Budget: 100,000 ADA

Overall Breakdown:

• Legal Formation & Regulatory Compliance: 22,000 ADA

• NMKR Integration & NFT Membership Setup: 15,000 ADA

• Clarity DAO Governance Setup: 17,000 ADA

• Operations & Sustainability: 22,000 ADA

• Workshops & Community Engagement: 10,000 ADA

• Administrative & Miscellaneous Costs: 9,000 ADA

• Project Review & Final Reporting: 3,000 ADA

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

The cost of this project represents excellent value for the Cardano ecosystem for several reasons:

Gold Standard for Decentralized Community Hubs

This project aims to serve as a model for running decentralized and transparent community hubs. By setting up a legally compliant and operational DAO in Paraguay, it provides a replicable framework for other communities and sectors, both within Paraguay and globally. This will help showcase Cardano’s ability to drive decentralized governance in real-world settings, setting a high standard for transparency and community-led management.

Sustainable Funding Model:

The use of NMKR for NFT-based membership sales provides a clear pathway to recoup costs and ensure long-term sustainability without relying on future Catalyst funding. This will allow the community hub to operate independently, generating continuous funding opportunities for community members through membership sales and governance participation. This model ensures that, once established, the hub can maintain its operations and grow organically.

Expanding Cardano’s Reach in Paraguay:

By onboarding large industrial sectors of Paraguay into the Cardano community, this project creates substantial value by fostering blockchain adoption at a national level. Paraguay is a key region for agricultural, industrial, and energy sectors, and integrating these sectors with Cardano strengthens the ecosystem and opens new use cases. This will increase Cardano’s visibility, utility, and adoption in the country, creating new opportunities for both the local and global Cardano community.

Measured and Accountable Use of Funds:

Each of the milestones—legal formation, NFT membership setup, Clarity DAO governance integration, and operational sustainability—has a clear deliverable tied to it, ensuring that every ADA spent results in tangible progress. The 100k ADA budget is distributed efficiently, and with the potential to onboard hundreds or even thousands of members, this project will have a broad and lasting impact on the Cardano ecosystem.

By providing a sustainable and replicable model for decentralized governance, this project not only brings immediate value to the Cardano community in Paraguay but also creates opportunities for expansion and growth within the larger ecosystem. This positions Cardano as a leader in real-world, decentralized applications and opens up new opportunities for large-scale industry engagement.