Across the crypto ecosystem and within Cardano exist a lot of tokens that can be construed as securities under the North-American and European laws raising issues of legitimacy and legality.
We want to consult with the best North American legal experts to ensure the creation of the JPG DAO and token are in line with the legal requirements and outlines of the land.
This is the total amount allocated to JPG DAO: Legal Review
We will be sitting down with the partners and associates at Schulte Roth & Zabel LLP to discuss the plan we have for the DAO and its token.
Once disclosed we will work with their legal team to bring the DAO and token into the confines of the law to ensure long term growth of JPG.
The efforts put in by the JPG team will help the understanding of North American laws in relation to tokenization. This will empower other entities within the Cardano ecosystem and crypto as a whole to learn from our roadmap and launch other utilitarian tokens.
The challenge that we foresee is arriving at a solution that not only keeps our token and DAO within the confines of the law but also one that doesn’t strip away the core ideals of being community driven.
The project would be executed over a time period of 2 weeks. In this time period we would use up 15 hours of consultation with the legal team to reach decisions regarding the path JPG needs to take to create its token.
Our budget will be divided into two sections based on the consultancy rates of the legal firm.
10 hours * 2 partners + 1 associate = 50k
We are basing these estimates off actual interactions we've had in the past with this firm.
Our C-Level executives will be the ones interfacing with the law firms, though this proposal doesn’t cover their costs, rather only costs incurred from the legal firm are added.
In total we will be consulting with a team of 3 from Schulte Roth & Zabel LLP, 2 partners and 1 associate.
The submission is a one time funding request to execute the proposal. We do not foresee us returning to Catalyst for further funding in regards to this proposal.
The project would majorly be executed in collaboration with a legal firm. The progress would be tracked as checklist against the Howey test to ensure we don’t fall under the definition of security as we fine tune the narrative and functionalities of the token and DAO.
A DAO that enables JPG Store to be driven by the community while staying within the confines of the law, thereby shielding both the business and holders.
This is an entirely new proposal.
The team at JPG launched the marketplace in the second week of November 2021. Since then JPG has pushed to create a user driven marketplace servicing all NFTs on Cardano. We have registered JPG Store as a legal business in North America within the confines of the local law.