The Core Team has been working with legal teams from Debevoise & Plimpton and Walkers on creating a legal structure for the SiloDAO. Following their legal advice, we are happy to announce that we have formed a legal foundation called Silo Labs.
Silo Labs will serve as the legal entity of SiloDAO only if token holders approve the action as we explain in this proposal.
What is The Silo Labs?
The Silo Labs is a “Foundation Company Limited By Guarantee” incorporated in the Cayman Islands. Silo Labs is recognized under existing laws to represent SiloDAO and the interests of SILO holders. It affords the DAO and token holders legal benefits.
This proposed legal framework is similar to one implemented by the Maker Foundation and is recognized as a best practice for DAOs to safeguard assets that cannot be technologically decentralized. You can read more about it here.
The Silo Labs Foundation will not have any shareholders or members and cannot pay dividends to the directors of the Foundation. The Foundation is mandated to serve its purpose in protecting SiloDAO and the DAO’s token holders.
For operational purposes, the Silo Labs Foundation will have two directors. The Directors have no direct personal interests and will take direction from the DAO. The local Cayman Islands directors have a strong background in corporate and investment funds, foundations and DAO governance. They are tasked with representing the best interest of the SiloDAO.
Silo Labs will look to the DAO for guidance on the future actions to be taken to benefit the Silo protocol and community.
In this folder you can find the following documents:
- Certificate of Incorporation
- Articles of Association
- Memorandum of Association
- Register of Directors and Officers
Entering into an agreement with Distributed Coders Inc.
The Core Team currently operates under the umbrella of a legal entity called Distributed Coders Inc. It is the entity that has developed the Silo Lending protocol V1 and will work on developing future versions as instructed by the DAO. The entity also maintains the Silo lending protocol (User Interface).
To formalize the relations between the DAO and the Core Team, we propose that the SiloDAO, represented by Silo Labs, enter into agreement with the core team where the latter serves as an independent contractor to the DAO to perform certain services relating to or in connection with the Silo lending protocol and the User Interface (www.silo.finance).
The proposal is now open to all token holders to discuss. We plan to move the proposal to a snapshot proposal to vote on the following matters:
- Silo Labs serving as the legal entity representing SiloDAO;
- Silo Labs retaining Distributed Coders Inc. as an independent contractor.