Smart Contract and Governance

 

The governance and operations of the DAO shall be conducted, in whole or in part, through the following smart contract(s): https://github.com/grd33?tab=repositories

 

These smart contracts will automate key functions, including governance, revenue distribution, transaction processing, and proposal execution, as outlined in the DAO’s operating agreement. Examples include:

 

1. Revenue Distribution: Automates allocation of subscription revenues and transaction fees as per predefined rules.

 

1. Transaction Fees: Implements a 1% transaction fee on cash-outs, with funds directed to the DAO’s treasury and distributed monthly.

 

Conditions and Purpose:

 

Conditions for Revenue Distribution:

 

* 20% of DAO subscription revenue shall be distributed to the founding team and in-house creators once profitability is validated.

 

* Validation criteria: The DAO achieves profitability when total revenue exceeds total operational costs for at least two consecutive quarters.

 

Conditions for Cash-Out Transactions:

 

* A 1% transaction fee will apply to all cash-outs, with large cash-outs over $50,000 processed faster for frequent users (at least three large transactions within 90 days).

 

* Discretionary distribution of these funds among the founding team, stakeholders, and in-house creators occurs monthly.

 

Purpose:

 

* Ensure equitable sharing of DAO-generated revenue.

 

* Reward frequent participants with operational efficiency.

 

* Maintain DAO sustainability by reinvesting in the treasury.

 

Management Structure

 

Grihd DAO LLC shall be algorithmically managed and member-managed:

 

1. Algorithmically Managed: Key decisions and operations will be executed via predefined smart contract logic, such as:

 

* Automating revenue distribution to the founding team, stakeholders, and in-house creators.

 

* Enforcing conditions on transaction fees, including fast processing for frequent large cash-out users.

 

1. Member-Managed: Members will vote on proposals and decisions.

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Voting Mechanism

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The DAO’s voting mechanism shall operate as follows:

* Token-Based Voting: Members’ voting power will correspond to the number of governance tokens they hold.

* Proposal Threshold: A minimum of 10% of the total governance token supply must back a proposal for it to be considered. * Approval Threshold: A proposal must receive at least 51% of the votes cast to pass.

* Implementation: Passed proposals will be implemented via smart contracts where applicable.

 

Membership and Tokens

 

1. Membership: Membership in the DAO LLC is determined by ownership of governance tokens issued by the DAO.

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1. Token Use: Governance tokens grant voting rights and may serve additional roles, including:

 

* Staking for rewards.
 

* Earning a share of DAO profits through predefined smart contracts.

 

* Access to DAO-specific benefits.

 

Proposals and Decision-Making

 

1. Proposal Submission: Members may submit proposals through the DAO’s designated on-chain platform.
 

1. Decision-Making: Proposals shall be subject to a voting period of 7 days, during which members may cast their votes on-chain. 1.

 

Implementation: Passed proposals will be executed automatically via smart contracts, including conditions such as:

 

* Requiring multi-signature wallet or smart contract approval via KYC/AML for revenue distribution exceeding $10,000.

 

* Reducing delays for frequent large cash-out users.

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Liability Limitation

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Members of the DAO are not liable for the debts, obligations, or liabilities of the DAO LLC, except as required by law. All members’ liability is limited to their contributions.

 

Dispute Resolution

 

Any disputes arising between members or with the DAO LLC shall be resolved through:
 

1. On-Chain Arbitration: Leveraging blockchain-based arbitration protocols where available.
 

1. Traditional Arbitration: If on-chain arbitration fails, disputes shall be settled in accordance with Wyoming arbitration laws. Amendments
 

Amendments to this Articles of Organization or the DAO’s operating agreement shall require:
 

* A 75% majority vote of all governance token holders.

 

Dissolution

 

The DAO LLC may be dissolved under the following conditions:

 

1. A unanimous vote by all members.

 

2. A smart contract-triggered event based on predefined dissolution criteria.

 

3. A court order requiring dissolution.

 

4. Founders final discretion / approval