Buzzed Bear Hideout

Status: Proposal

Author(s): 21xHR#6726

Created: June 25th 2022

Discussions: Comment below

Implementation: Immediate

Buzzed Summary This proposal is to allocate funds to seek for legal advice on the best way to execute a rescission offer to be deemed having acted in good faith.

Abstract In their letter, the legal counsel advised the DAO to execute a rescission offer to cut the founders from being legally liable to the US minters.

Given the legal framework surrounding digital assets is a new and evolving body of law, the SEC is unable to provide definitive guidance on how to conduct a rescission offer in this specific context.

It appears that, nonetheless, to be deemed having taken proper actions in order to be considered having executed the rescission offer in good faith, the DAO should at least seek for legal advice on how to conduct a rescission offer.

Motivation Motivation #1

To prepare for the execution of the rescission offer

Motivation #2

To research further on how to properly execute the rescission offer

Motivation #3

To supplement our view on how to properly execute a rescission offer

Motivation #4

To be deemed having executed the rescission offer in good faith

Specification Overview The DAO will be allocating up to 10k USD to pursue the investigation on the best way to execute the rescission offer. The DAO representatives will be interacting with the legal counsel through mail and report to the DAO.

Rationale As stated above, given the legal framework surrounding digital assets is a new and evolving body of law, the SEC is unable to provide definitive guidance on how to conduct a rescission offer in this specific context.

If we choose to execute the rescission offer as we think is best, there is a possibility we miss a key aspect of the needs when it comes to executing a traditional rescission offer.

Also, as the DAO already started seeking for legal advice and as the rescission offer has been suggested by the lawyer themselves, not seeking for further advice on how to properly execute the rescission offer could be seen as acting in bad faith.

Regarding this, it is much preferable the DAO seeks for legal advice before executing the rescission offer to ensure and higher the probabilities of having its execution considered as having been executed in good faith.

Technical Specification ‌ The DAO representatives will send the legal counsel the following proposal - BBH - BIP execution of the rescission offer - final - Google Docs, and ask how to optimise its execution in order to be deemed having acted in good faith.

The DAO representative will report to BBH holders in regards the received feedbacks.

Payment for these legal costs will be made by a DAO representative, up to a maximum USD value of $10k. Reimbursement for these legal expenses will be paid from the honeypot.

The following will be the actual execution of the rescission offer as proposed in the following document - BBH - BIP execution of the rescission offer - final - Google Docs

Copyright ‌ Copyright and related rights waived via CC0.