Dopewars

A PROPOSAL TO SECURE THE LEGAL FOOTING OF DOPEDAO

PART 1

I have done extensive research into the legal standing of our DAO and in fact DAO’s in general. There are many complicated legal considerations and the truth is that, although some aspects are clear cut, the larger picture is unprecedented and dependent on uncertain potential future variables. Given the challenging nature of the DAO with the difficulties presented by the decentralization I believe it is the right time for DOPE DAO to CALL SAUL and set us up for success in a prudent fashion.

In line with this, DOPE DAO has been in consultation with a renowned crypto lawyer Mr Thomas Plunkett. As you can see from the picture below Mr Plunkett is well versed in the Crypto world and Crypto Law, to the point that he teaches University level Crypto related papers that he has developed. We were fortunate enough to have this contact given to us by a well-connected hustler and member of the DOPE DAO.

Currently DOPE DAO is an amorphous entity. There is no structure by which any contesting body can latch onto to hold it accountable for any particular reason. The reasons for someone/something wanting to pursue DOPE WARS legally could be numerous — A scam, hack, rug, trademark or copyright issues, tax issues etc. the list goes on. Therefore it remains a possibility that each person who is a voting member of the DAO could be targeted as liable for the actions of the DAO. This lines up with recent case law that is attempting to define DAO’s with no legal structure as General Partnerships. General Partnerships have no limit on personal liability; personal assets of individual members are exposed. Equally, each member would be potentially liable for the actions of another DAO member. I’m not sure about ya’ll but I certainly don’t want to be liable for all of the shenanigans that any hustler might get themselves mixed up in! This problem area was confirmed during our one hour complimentary consultation with Mr Plunkett.

Because of this, I do believe it is in our best interests to obtain a wrap-around future proof protection for our DAO. There have been a few areas of concern highlighted. Having discussed the entirety of them with the good lawyer we have managed to ascertain that it would be prohibitively expensive to engage legal counsel upon all legal issues that haunt DOPEWARS and Crypto in general! (The first quote was 75k USD!) We have managed to whittle down the areas of concern to the most important and most pressing so we can affordably address the issue. They are defined below as part of a quote provided to us for the provision of 20k USD worth of legal work.

1. LEGAL ENTITY FORMATION OPINION LETTER This comes as a recommendation of which Legal Entity is best suited to the DOPE WARS ecosystem. The creation of this Legal Entity will form a separate proposal as PART 2 of this effort.

2. DAO OPERATING AGREEMENTS A. THE DAO would like a SOFTWARE OPERATING AGREEMENT to be put in place which limits liability from people interacting with the dopewars.gg website B. THE DAO requests a CONTRACTOR AGREEMENT to be issued to anyone performing services, which clearly states the 3rd party is performing work, but THE DAO owns the created content.

3. GAMING LEGAL OPINION THE DAO is seeking to create games hosted on the website dopewars.gg, which allow players to compete against one another using NFT assets, pay entry fees in our ERC20 token PAPER, and receive tokens back depending on the outcome of those games. The first game of this nature is called PAPER ROCK SCISSORS. The idea is that anyone can pay a token entry fee of whatever ERC20 token they have, which is swapped for the ERC20 token PAPER. Depending on the outcome of the game, one winner is selected and receives 95% of the entry fees from both contestants, with the remaining 5% going back into THE DAO treasury to maintain the open-source gaming protocol, and incentivize other builders to create games of a similar nature. The opinion will direct us to the proper processes to follow for this game, and future games, so as to comply with relevant laws, for example gambling laws/regulations.

4. OPINION ON USAGE OF THE TREASURY Based on the above facts, THE DAO would like to understand what can be done with tokens in the treasury. Usage of the tokens should avoid having any of them being classified as a security by the SEC. Outstanding questions • What can the ETH and PAPER in THE DAO treasury be used for? • Can these tokens be swapped for other tokens? • Can they be used to provide liquidity, and collect fees on that liquidity? • Can they be granted to benefactors of THE DAO for donations? • Can they be “sold” in any way?

The above mentioned issues form the content of this first proposal. A proposal that we vote to release 20k USD worth of ETH that will be used to pay Mr Thomas Plunkett for the legal counsel as described above. The clarification of these legal issues will not only steer us in the right direction but will also provide invaluable evidence that we are conducting proper due diligence operating on the best available advice at the time. Once we have this coverage combined with the creation of a legal entity as defined in Part 2, we will be in a very good position to continue to build with the sound knowledge that we are pursuing legitimate purpose.

The vote is a simple YES/NO.