Introducing Company DAO
Motivation
As founders, we know how difficult it can be to start, operate and scale a business. Bureaucracy and a reliance on intermediaries create a lack of transparency and friction for entrepreneurs.
Company DAO is a web3 protocol which allows anyone to set up and manage a legal entity using an Ethereum wallet. Company DAO allows real world companies and assets to be owned and managed by online communities through a decentralized autonomous organization.
We believe that every business can benefit and decentralized approach to company management. Moving businesses on-chain offers founders and existing businesses considerable advantages in 3 key areas :
- Efficiency
Smart contracts can be used to create automated facilities for administration and compliance which means time and money saved by founders can used for creating value elsewhere. - Transparency
Operations executed on-chain are auditable by anyone in real time. This makes for a truly frictionless fundraising experience giving companies much needed early stage liquidity. Founders can by-pass traditional VCs and target investors directly. - Scalability
Any can business model can be open-sourced when implemented as a DAO. Immutable, software based contracts act like a universal corporate governance system, allowing businesses to create powerful, self re-enforcing incentive structures, bootstrap resources and mobilize financial, social, intellectual and labor capital on an un-precedented scale.
Some Use-Cases
- Form a legal partnership in minutes
Incorporate in under 5 minutes from your web browser using only your Ethereum wallet/account. - Reduce Admin Costs
Automate corporate governance with the Company DAO protocol and client software. Take advantage of our management services to fully outsource compliance, accounting, taxes and all the other bs you don’t wanna do. - Raise funding globally
Tokenize equity and sell to any investor online without intermediaries, while de-centralized exchanges facilitate a permission-less way to publicly list and trade tokens internationally. - Powerful Equity Based Compensation
Create complex, yet easy-to-implement vesting schemes for employees, community or freelance workers through a standardized framework. - Tokenise real world assets
Whether its real estate, art, commodities or equity — the Company DAO protocol makes for a simple and transparent tokenization mechanism which gives your token holders legal ownership rights over the assets transferred to your registered entity. - Wrap your DAO in a legal entity
Any tokens minted by a DAO or web3 protocol can be held in the treasury of a Company DAO entity and managed by the entity’s pool contract. This allows web3 founders to seamlessly transfer their own protocols to a legal entity operating on the Company DAO protocol, providing limited liability protections, as well governance and compliance solutions to their token holders. - Accept FIAT payments
Invoice your customers in USD and receive stable-coins directly into your company’s treasury. - Bridge between IRL and DeFi services
Company DAO allows founders to combine the flexibility of the legacy legal system and the automation of smart contracts by acting as a bridge between on-chain and off-chain services. Founders can access legacy infrastructure, such as bank accounts and utilize ‘paper’ contracts for when there’s no smart contract for the job.
How it Works
We pre-register legal entities across a number of jurisdictions which have the necessary legal framework for us to represent an ownership stake in said entities with tokens issued on-chain. The Company DAO protocol allows anyone to purchase a registered legal entity and issue Member Tokens representing an ownership stake in that entity. We provide management services to companies operating on the protocol via a management agreement. We charge a fixed set-up fee for each entity and can update the registration information upon the user’s request. Additional services, such as tax fillings, will be offered on an opt-in subscription basis.
The Company DAO Trust
The Company DAO protocol will be developed, serviced and maintained by a special entity which we to call ‘the Trust’. The Trust is itself a DAO, which is governed by it’s token holders like any other company operating within the protocol. Our long term plan is to transfer a majority ownership stake of the Company DAO protocol to the companies operating on the protocol via the Trust. The ultimate goal is to ensure fair governance in the interest our clients. To facilitate a fair ownership distribution of the protocol we will be implementing a usage based reward mining program. This distribution mechanism will, of-course, favour early adopters!
Community
Our software is subjected to a multi-step quality assurance and certification process and we invite external testers to participate in our beta where we try out new features and distribute rewards such as bug bounties and more, please follow the link.
If you have a cool business which you would like to upgrade to a DAO, please feel free to contact us at @companydao_llc, we’re always keen to chat and won’t charge any consultation fee.