Legal frameworks around blockchain are changing everyday, it is difficult for Catalyst earners and organizations like the Littlefish Foundation to know what obligations they are under.
A broad research and knowledge sharing effort by an experienced team of blockchain law experts, documentation and workshops to answer any questions about blockchain law and provide consultation.
This is the total amount allocated to littlefish - Law and the New Order
4/5 milestones complete
We are the Littlefish Foundation (LFF), a decentralized, global organization, building technologies that align individual actions towards common goals, enabling collective intelligences.
We use blockchain technology to redefine earning relationships between people, work, and organizations, enabling a new model of operation that grants more freedom to participants, while making sure that freedom results in progress towards the goals of the whole.
Our proposals are best experienced in the Littlefish Vault. There will be multiple links to it throughout the proposal with background information necessary to fully understand the concepts.
PAs, you will need this information to understand LFF. We strongly recommend reading these before the proposal.
Building solutions on the blockchain come with many legal questions that need to be answered. Legal frameworks around blockchains are constantly being updated with new laws being drafted globally. These developments must be tracked, legal obligations related to LFF must be understood and communicated.
There are 13 problem areas that need to be understood.
1 - Legal status of LFF Action NFTs
At LFF, we are redefining earning relationships with Actions. The basic system is:
This is a new method of doing business, of getting paid. Fundamentally, it is no different than creating art, making an NFT, and selling it on an NFT marketplace.
We will be using this method of payment internally at LFF. What that means in legal terms, is the question.
Actions are NFTs, they can serve as a digital notary. How can this be utilized?
2 - Legal status of earning through Project Catalyst
There are many earning opportunities in Project Catalyst: proposals, proposal assessments, Challenge Teams, etc. What tax and other obligations earning in this environment is not obvious for all.
3 - Legal frameworks for Decentralized Organizations
What legal frameworks are available for Decentralized (Autonomous) Organizations? What should be considered? At what point does a DAO/DO need a legal standing? What challenges will new DAOs face if they don’t have legal standing? What legal ramifications exist for organizations like LFF?
4 - Legal framework for tokens and coins
What regulations must LFF and other projects adhere to in regards to their tokens and coins to minimize scrutiny by regulators? Security vs commodity classification and its implications.
5 - Legal status of smart contracts
Mostly Ethereum blockchain and some other blockchains and platforms enable its users to conclude smart contracts. Legal status of smart contracts, its validity and the way the smart contracts are performed are some of the curial challenges and ambiguities that blockchain community faces everyday.
6 - Legal status of real world-asset backed tokens and coins
How the economic value of the crypto assets are determined is still a vague problem. Some crypto assets’ values are supposedly determined according to the value of the real world assets. In some cases, the question whether these tokens and coins may be considered as option agreements due to the classical approach of legislation in force arose.
7 - Legal status of the data stored in blockchains
Ever since the European Union adopted the GDPR, inevitably the whole world’s focus has shifted to this very area. Due to the storage of massive amounts of data in blockchain, the question whether these data could be considered as personal data or not arose.
8 - Crowdfunding through ICO-ITO and Crypto Assets
Due to its global nature, crypto assets and their initial offerings are inevitably suitable and convenient ways for crowdfunding. In the event that initial offering of these coins or tokens are considered as crowdfunding, the legal regulation that these offerings may be subjected to may dramatically vary.
9 - Taxation of crypto assets
As the amount of capital that shifts to the crypto assets and relevant platforms, states’ focus inherently shifts towards taxation of these crypto assets. Due to crypto assets’ global and decentralized nature, various serious legal problems may arise such as double taxation, income tax and VAT. In this regard, different states may take on different approaches, that’s why approaches of the leading countries in this area shall be closely examined.
10 - AML/KYC Regulations
One of the most solid reasons why states tend to look sideways at crypto assets and blockchains is due its mostly unregulated status and its ability to conduct transactions between peers without need of any intermediaries. As the states’ ability to track and control transactions decrease, states tend to take more preventive measures. In this regard, many states and international organizations either adopted some regulations that govern this sector in the context of AML or made crypto asset holders and virtual assets service providers subject to current legislation in this context.
11 - Legal meaning and status of whitepapers
During the classification of crypto assets, their whitepapers and the statements in these whitepapers are often instructive. Therefore, how the whitepapers are concluded and the possible interpretation of the meanings thereof play a vital role in the classification of these crypto assets.
12 - Intersection of Intellectual Property and BlockChain
As the application and usage of blockchain technologies and its derivative products, infringement of intellectual property of the relevant persons may become widespread. Even though there is no specific regulation on blockchain in many states, classical legal doctrines and rules still find application in developing technologies. In this regard, intersection of intellectual property and blockchain technologies must be closely examined and members of the blockchain community shall be careful as they continue to prosper.
13 - Metaverse and Law
As the technology continues to rapidly develop, even the understanding of what is real and what is virtual becomes vague. It is observed that many people believe that real world legal norms do not apply to Metaverse. On the contrary, legal norms must be strictly taken into account.
Our team at LFF is a global one but a large part of the team today is from Turkey. We need a solid team of legal consultants from the jurisdiction with expert knowledge on blockchain law to guide us on answering these questions.
We will work with the team at Tevetoglu Legal to research and understand these issues. Their work will result in research documents, which we will publish on our knowledge base, The Vault.
We will share the information generated in the Catalyst community through workshops, and spread it further through marketing activities, allowing others to learn.
Who will benefit?
The research we conduct will be determined by the needs of LFF, thus we are the primary beneficiary. Yet these problems affect a larger group than us. Our research will benefit a large category:
The outcome of our work is greater clarity on the legal implications of Actions, earning in Catalyst, DAO legal frameworks and all the aforementioned problems in “The Problem”, for all who are interested.
Alignment with the challenge
The challenge aims to solve a fundamental challenge funded proposers face in the ecosystem: establishing legal frameworks for their projects. The solution is to provide funded proposals with solutions to operate legally in their residing country.
This proposal aims to do exactly that, providing LFF with consultancy on its legal standing on various issues, benefiting LFF, users of Actions, the Catalyst community, and other decentralized organizations.
The proposal will also get a group of lawyers with blockchain expertise into the Catalyst ecosystem.
Use Case - How many funded proposals are making use of these new solutions and services
Impact - How many of these new implementations are mutualistic to funded proposals.
Adaptability - Can these solutions and services be used anywhere in the world
LFF General - Funding
Littlefish Foundation is a complex organization driven by individual efforts. It only moves forward if individuals drive it forward. The single biggest risk in front of that is financial. A large percentage of the team is based in Turkey, which has been experiencing hyperinflation for the past year.
Funding is the number one challenge we face. With funding we can pay the team to work on Littlefish Foundation and make their financial burden lighter. This all puts us closer to achieving the LFF vision. We are a global community with contributors from all over the world. Without funding, we will still build the LFF, but it will be more challenging and slower.
We are mitigating risk through diversification in multiple proposals, increasing the chance of receiving funding. We’re also budgeting for the Action Fund, partly to serve as a contingency.
LFF General - Technology Risk
LFF is developing a strong infrastructure to be able to scale, for that we need the support of a strong development community. The current team is very strong on tech development, with extensive experience, and we are welcoming more developers to join. We are already engaged with the Gimbalabs development community and have their support.
This Proposal - Tracking Legal Developments
The legal framework for blockchains is rapidly changing. Regulators around the world are working on updating existing frameworks. Tracking these developments is difficult, time consuming work. It requires a professional team of experts. With Tevetoglu Legal, a firm with expertise and a great track record on blockchain law, we mitigate the risks of changing legal frameworks.
This Proposal - Law is Jurisdiction and Context Specific, Needs Expert Consultation
Since legal frameworks become outdated over time based on adaptation of new regulations based on jurisdictions, the research and the outcomes of this proposal will only be educational. There is a risk that this knowledge can be misunderstood by the members of the blockchain community who are not familiar with the legal aspects of the proposed solutions.
That’s why we strongly recommend relevant actors of the blockchain community to still have legal consultancy from experts in the corresponding fields and jurisdictions. That’s why we at LFF mitigate this risk for ourselves by working with Tevetoglu Legal.
Problem areas are the 13 identified in the beginning of the proposal. Legal research will generate docs related to each of the areas. The exact number of docs generated will be decided in the process.
Workshop details will be planned in the process as well. Each workshop will cover one or more of the problem areas.
Key Milestones and expected deliveries:
Module 1: Legal Research
Stakeholders: LFF, LFF users, Catalyst community members, DAOs
Primary Work Group: Tevetoglu Legal
Duration: September - February
Resources: 250 hrs of work + module operations budget
Module 2: Consultation and Educational Workshops
Primary Work Group: Tevetoglu Legal
Duration: September - February
Resources: 250 hrs of work + module operations budget
Module 3: Marketing The Littlefish Vault
Stakeholders: LFF, Catalyst and Cardano community
Primary Work Group: Love House
Duration: August - February
Resources: 60hrs of work + module operations budget
Marketing The Littlefish Vault is a general module, shared by many LFF proposals. Its aim is to broadcast the knowledge generated in other modules far and wide.
Key Milestones and expected deliveries:
All LFF proposals follow the same budget structure. They are made up of the module budgets and the Action Fund allocation.
Each proposal is made up of modules. Each module has a specified budget. The sum of module budgets makes up the first part of the overall budget.
1 - Personnel budget
Each module has a personnel budget and an operations budget. The personnel budget is the total estimated hours * the hourly rate for the module.
The base hourly rate for LFF proposals is 50 USD. This is a living wage in most parts of the world. It will bring financial stability to participants.
The hourly rate for a module may change from this default, based on the expertise needed.
2 - Module operations budget
Each module is allocated an extra budget sized at 1/5th of the personnel budget to enable operations.
This budget is a pooled organization wide resource used to cover expenses. It will be used to purchase digital work tools like Zoom to be used by all members of LFF.
A part of it will be spent with the discretion of the module team. For example, it can be used to pay for transportation, buy personal digital tools, purchase other teams’ Actions, etc.
LFF Action Fund
LFF Action Fund has three purposes.
1 - Contingency
Proposals may not be funded. The activities in the proposals will still take place if we can account for this with additional funding. Action Fund will provide that funding if and when it is necessary.
The Action Fund can be used to extend a module budget, fund an unfunded proposals’ module, or fund new modules as need arises.
2 - Incentivizing further Action
We are creating a new economy. LFF is the first colony in this economy. Its members are producing Actions, the supply. But who will buy them?
There is a need for stable demand for Actions to bootstrap this new digital economy. Action Fund provides this stable demand.
3 - Admin and other work
There is a lot of unmentioned work that goes into building the Littlefish Foundation. This includes general admin work like setting up meetings, scheduling, scribework, as well as other activities like community building.
The Action Fund will prioritize buying those Actions that aren’t covered by the proposals.
Action Fund Sizing
The Action Fund allocation is sized at 1/4th of the total budget. This is common across all LFF proposals to provide financial safety to the project for the next 12 months, allowing us a healthy runway to create the new earning economy.
The hourly rate for Modules 1 and 2 is 100 USD/hr, the hourly rate of Tevetoglu Legal. Module 3 is priced at the default LFF rate 50 USD/hr.
Module Total = 63600 USD
Action Fund Total = 21200 USD
Total = 84800 USD
Atty. Assoc. Prof. Dr. Mete TEVETOĞLU
Dr. Mete Tevetoğlu received his LLB from Marmara University Faculty of Law in 2001. Then, he obtained his LL.M degrees from Marmara University in Private Law and also from Bilgi University in Business Law.
In 2006, Dr. Mete Tevetoğlu was rewarded with the exceptional Unal Aysal Thesis Prize from the Economic Research Foundation for his outstanding LL.M thesis namely “Measures To Be Taken Particularly Gradual Winding-Up For the Intermediaries Whose Financial Status is Deteriorating”.
During his PhD education, he completed his research at the London School of Economics and Political Science and University London Institute of Advanced Legal Studies. Then, he received his PhD from Marmara University in 2009 with the thesis namely “Capital Markets Disputes, Applicable Law and Arbitration”.
Upon completion of his postgraduate studies, he was appointed to Ozyegin University in 2011 and to Maltepe University Faculty of Law as an Ass. Prof. On 16.04.2022, he was honored with the title of Associate Professor.
In addition to his extraordinary postgraduate studies, he took part in many organizations and authorities. He played a pioneer and exemplary role in examining legal aspects and implications of the developing technologies. He served as the President of the Information and Technology Law Center for the Istanbul Bar Association and was a member of board of directors of Turkey ESport Federation between 2018-2022. Additionally, he established the Application and Research Center on IT and IP Law within Maltepe University. Currently he is serving as the head of this Center. Under this Center, he managed five different research groups, namely, Personal Data and Electronic Commerce Law, BlockChain and Law, Digital Rights Management and Copyright Law, Financial Technologies and Law, Artificial Intelligence and Robotics Law. He worked with and mentored more than hundred people who specialized in regarding areas and carried out an IT and IP Law Certification Program, to which more than hundred people participated.
He advised five different theses, published five books, submitted seventeen papers in international scientific conferences and proceedings, made sixteen publications in national peer-reviewed journals, and submitted twenty-five papers in national scientific conferences and proceedings. You can see more detailed information on his CV.
His latest publication and his associate professorship thesis is “Legal Aspects of Crypto Assets and Initial Offering of Crypto Assets”. He is one of the very few lawyers in Turkey who specializes in crypto assets and blockchain technology. He works as a legal expert in Istanbul Central Courts. Also, as the Founder of the Tevetoğlu Legal he works as a legal consultant for many companies, especially for companies whose line of business is about crypto assets and blockchain. He is the legal consultant of some of the major Crypto Asset Service Providers in Turkey.
Research Assistant Batuhan Demirtaş
Res. Ass. Batuhan Demirtaş came in first in high-school entrance exams throughout Turkey. Due to his extraordinary success, he got accepted to one of the best high schools in Turkey, Robert College in 2012 and graduated from RC in 2017. Upon completion of his high-school education, he got accepted to Maltepe University Faculty of Law with full scholarship. Then, he received his LLB degree from there with an honorary degree.
After obtaining his Law degree, he began his postgraduate education in both Istanbul University and Maltepe University. He currently continues his LL.M studies and prepares his thesis under Istanbul University Social Sciences Institution Commercial Law LL.M Program (with thesis). His LL.M thesis is on the intersection of developing technologies, especially blockchain and its derivatives, and intellectual property law.
In addition to his LL.M studies, Batuhan Demirtaş also got accepted to the joint PhD program at Maltepe University. Currently, he is doing both a LL.M and joint PhD simultaneously. As his LL.M thesis, his PhD thesis is also going to be about developing technologies and its legal aspects and implications.
Due to his outstanding ongoing postgraduate studies, he was honored with a scholarship from TUBİTAK (The Scientific and Technological Research Council of Turkey). Additionally, he works at Maltepe University Faculty of Law Information and Technology Law Department as a research assistant. Furthermore, he is working as a legal consultant to some law firms, in the areas such as blockchain law, smart contracts, etc.
Atty. Asena Ömür
Atty. Asena Ömür received her LLB from Istanbul Bilgi University of Law in 2017. During her studies, she participated in legal courses in London School of Economics in the UK. After and before graduating from Istanbul Bilgi University in 2017, Asena has worked and had experience for nearly 5 years in various areas, also as a litigator in criminal law, commercial law, labor law, IT law and IP law.
Asena is an active member of the legal counsel of Turkish Game Developers Association (TOGED) and provides support regarding their operations and assemblies. She also participates in the annual and regular meetings of Blockchain Turkish Platform Association and Turkish Industry and Business Association (TUSIAD). As a member of Onchain Working Group, she participates in studies on DeFI and their legal issues. Asena attends the ongoing Blockchain Technologies and Legal Infrastructure Certificate Programme held by Istanbul University Education and Research Center.
Asena leads M&A deals with Turkish and foreign entities which operate in the areas of blockchain, crypto currencies, NFT, Metaverse, hyper-casual/pc games and cybersecurity. Her practice focuses on providing legal consultancy and solving legal issues one-on-one with a wide range of companies , mainly technology companies, start-ups and DAOs. She also supports the legal procedures in establishment of the companies and compliance with Turkish and foreign regulations.
Atty. Yaren Denizaltı
Atty. Yaren Denizaltı completed her high school education at American Collegiate Institute (ACI) and obtained her bachelor’s degree from Istanbul Bilgi University, Faculty of Law in 2019. During her studies, she was elected by her professors to participate in the 25th Vis International Commercial Arbitration moot court in Vienna. There she had a chance to develop an international law perspective and advanced her advocacy skills by participating to final rounds in Vienna as an oralist. She also took part in the pre-moots in Germany and in the Netherlands. Before her graduation from Istanbul Bilgi University, Yaren has made summer internships in various law firms in areas such as corporate, investment and IT & IP law.
She has an LLM degree from University of Amsterdam in European Private Law. After completing her LLM studies, she worked as a legal counsel for a digital games start-up in Amsterdam. Since she had challenged herself with a double major program in mechanical engineering during her law studies, her interest in the reflections of technological innovations on legal discourse motivated her to professionalize in the areas of IT law, gaming and blockchain sector.
As a member of Onchain Working Group, she participates in studies on GameFI’s legal aspects. Yaren also attends the ongoing Blockchain Technologies and Legal Infrastructure Certificate Programme held by Istanbul University Education and Research Center.
Atty. Betül Çolak
Atty. Betül Çolak received her LLB from Bahçeşehir University of Law in 2020. She attended legal courses in Washington DC, USA for one year. During her studies, she completed several internships in the US and Turkey. She completed her 3rd grade in Université Jean Monnet in France within the scope of Erasmus Exchange Program. After and before graduating from Bahçeşehir University in 2020, Betül has worked and had experience for nearly 2 years mainly in data protection law, IT law and IP law.
Betül is an active member of the legal counsel of Artificial Intelligence Working Group at İstanbul Bar Association and provides support regarding their reports, meetings, blog posts etc. She also participates in the annual and regular meetings of Blockchain Turkish Platform Association. As a member of Onchain Working Group, she participates in studies on NFT and their legal issues. Betül attends the ongoing Blockchain Technologies and Legal Infrastructure Certificate Programme held by Istanbul University Education and Research Center.
Betül leads privacy and data protection law compliance of Turkish and foreign entities which operate in the areas of assurance, e-commerce, blockchain, crypto currencies, NFT, Metaverse.
Yes, we will return to Catalyst for further funding, until we build sustainable business models around Action. Catalyst allows us to take our time, engineer systems well without rushing to market, potentially risking an event similar to what happened to Luna.
We are an evolving decentralized organization. We expect solid community and contributor growth in the near future. These individuals, along with existing ones who have time from existing commitments, will be starting new initiatives. Until we get to a sustainable business model using Actions, Catalyst will be the place where we come for funding. This allows us to experiment until we can figure our way. Thanks Catalyst!
We aim to become sustainable with the launch of our token on mainnet, which we tentatively aim to deliver by Q3 2023.
Meanwhile, we will be providing Catalyst and the broader community with ongoing services. We will be publishing all our research (DAOs, governance, economic, technology, tools, ...) on the Littlefish Vault. These will be made sustainable through experiments in Action, in due time.
Where to check our progress?
At Littlefish Foundation, everything we do is public, and we like documentation. We will publish major progress updates on Obsidian, sharing our learning with the Catalyst community. Our Miro boards are open to the community, there they can see our progress, comment, and contribute. Discord will be the best place to find daily updates, and Actions.
All LFF proposals produce Action, work done by individuals to achieve a goal. Until we have a working system with NFTs, we will use Discord to broadcast our Actions. There are many examples already on the #action channel, showing our early work. As our community grows, it will contain Actions taken by many different littlefish who are building the LFF.
We will track these posts specifically and incentivize team members and contributors to share their Actions, preparing them for Actions on the mainnet.
LFF General - Community Tracking
The general success of LFF is dependent on a strong community. We will track it from several sources:
We’ll review this data monthly and share updates through our communication channels.
This Proposal - Legal guidance documentation and the intangibles
With this proposal, we deliver legal research specific to the conditions of LFF, Catalyst, DAOs and to other aforementioned problems that every blockchain community member already has faced or inevitably will face. We will track the visibility of these documents through Google Analytics including page views, unique visitors.
Yet, this is a somewhat weak measure of the impact of this proposal. The very essence of the social sciences is its subjectiveness. It is challenging to precisely calculate the impact factor of our hard-work. The true measure is intangible. It lies in greater understanding of legal obligations for individuals and organizations, and the adjustments they make to comply with laws.
LFF General - Solving our own problems through experimentation, building applications the community loves
Our approach to problem solving in this space is experimentation. Trying out new methods of doing business, creating new processes fit for a decentralized organization built from the ground floor.
One example is our Ikigai onboarding model. The bubbles at the top represent work groups and business functions. We walk through the bubbles with newcomers, discussing what they mean in Littlefish Foundation, and ask them to fill their Ikigai board with them. The result is a fun learning experience for everyone.
We create such systems with the aim of turning them into software. First we practice with existing tools, learn, iterate, and experiment, then we'll build it into software that others can use. See our Ikigai proposal here.
Some other experiments relating to publishing Actions by:
Success means these experiments turn into learning which turn into applications loved by the community.
LFF General - A strong community of creators and builders
We are a growing community of 100+. Yet pure numbers aren't enough. Growing the number of meaningful contributors is the key to long term success. Since the F8 proposal, the number of consistent contributors has grown from 2 to 10+ and growing fast. Newcomer numbers are also ticking up. Maintaining a sustainable, healthy growth in these numbers is critical.
This Proposal - Legal standing of Actions is clear, developments are being tracked
With success, the legal standing of Action NFTs to be used within the context of Littlefish Foundation Actions is clear, to the extent of available legal frameworks. Possible changes to the frameworks are being tracked, information is updated when the rules change.
This Proposal - Earners in the space are assured about their earnings from Catalyst
With success on this proposal, LFF members and other participants in Catalyst feel more comfortable about their earnings. If they have any obligations from their earnings, they are informed, if not, they are pleased.
This Proposal - LFF is aware of potential legal issues
LFF is defining a new earning method and building technologies that enable the organizations of the future. The legal frameworks available are not fit for blockchain based earning. There are many potential issues, including future developments on legal frameworks for blockchain based earning. With success, LFF is aware of these issues, and takes the necessary steps to comply with laws.
This Proposal - Catalyst and blockchain communities are more aware of legal issues
Projects, organizations, and individuals alike, from Catalyst and other blockchain communities are more aware of legal issues they face. They can make better decisions, know better which questions to ask, and have a better understanding of when they need legal consultation.
Littlefish Foundation Kiva-like DAO - Unfunded F7 Proposal
Littlefish Foundation was born with this proposal from the Cardano4Climate community . The aim was to create a DAO and build a Kiva like product that would allow the funding of on the ground SDG activities.
The proposal wasn’t funded, but we kept working. We held weekly meetings, brought in experts for discussions, and worked hard to understand the domain of problems. Through that we’ve developed the idea further and generalized it to what it is today.
Littlefish: Coordinating Action - Funded F8 Proposal
In F8 we came up with a new vision for the Littlefish Foundation: littlefish, colonies and Actions. We got to work before it was even funded.
We were relatively new to developing on Cardano and found a steep learning curve. Weak documentation slowed development down, and we realized there was more to building a successful Littlefish Foundation.
During this time we have completed many important steps:
Here's a shot of that board as of the 10th June:
Our proposals in Fund 9 aim to supercharge this holistic vision of the Littlefish Foundation.
Tevetoglu Legal is a leading law office in Turkey with expert attorneys in digital technologies, BlockChain and Crypto Assets Law, IT, IP Law, Commercial Law, M&A, Capital Market, eSports, Game Law, Company Law, Legal Compliance, Technological Investments Law, Metaverse, NFT.