Is setting up a foundation the new trend in DAOs? AavegotchiDAO votes on creating an IRL foundation

Is setting up a foundation the new trend in DAOs? AavegotchiDAO votes on creating an IRL foundation

AavegotchiDAO has embraced the idea of establishing an off-chain presence through the creation of a foundation in the Cayman Islands.

In October, SushiSwap approved a proposal to establish three legal entities in Panama and the Cayman Islands. Other leading decentralized autonomous organizations (DAOs) such as ENS have also jumped on the bandwagon. On Monday, Aavegotchi’s proposal to create a foundation with nine directors or multisig signers went live for voting on Snapshot.

Initiated by @gldnXross, the proposal seeks to set up a Cayman Islands foundation consisting of 9 directors, who will double as the multisig signers of the DAO’s treasury wallet. The DAO Treasury multisig will be set at 5/9 signers in order to execute, the proposal stated. Members of the board will be paid at least 8,000 GHST annually, split into 2000 GHST directly from the Treasury multisig every 90 days.

As of press time, about 78% of the 184 voters were in support of the idea. Voting will close on November 24.

If passed, the DAO will proceed to gather a list of all those interested in serving as directors on the foundation. Directors must pass KYC checks. A Snapshot election will then be held to choose the nine directors based on the number of votes. In general, the DAO foundation is expected to launch in mid-December.

In addition to managing all DAO treasury funds, the board could potentially manage the GHST Bonding Curve Council tokens, as well as all protocol contracts. A member of the foundation has the freedom to resign if they disagree with the action of the DAO since they cannot vote against a verified on-chain AGIP intent.

Meanwhile, the legal counsel will provide a local corporate secretarial service and a local officer to serve as a secretary to perform basic administrative functions in the interim.

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