Lido DAO

The following is a vote on the proposed allocation of LeXpunK Builder Defense DAO funds as outlined in the following proposal.

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Proposed Spend on Contributed Funds - Tranche 1 (start of Q4 2021 - end of Q1-2022)

1. Operations | $150k (fund coordinator pay ($3k per project) & misc. expenses)
2. DAO Structure & Risk Mitigation Bounties:

• Build DAO Coop / Labor Union Model | $15k min, up to $150k
• Model Foundation / DAO back-to-back docs / structure | $15k min, up to $100k
• Limited liability for DAOs, forking California nonprofit unincorporated association statute | $20k min, up to $100k
• DAO tax safe harbor (cross-category) - proposal to establish a safe harbor for smart contract systems that if they pay a ‘greater of’ %-based or flat tax, they will fit into safe harbor for certain tax-related risks
• Guidance paper regarding DAO legal claim standing, attorney client privilege issues, and proposed model structures and parameters for proper DAO legal defense funding | $25k min, up to $60k

Model Legislation/Regulation Bounties

1. Section 409A amendment to improve tax treatment of vesting token awards + fork of yearn vesting contract that complements the amendment proposal | $25k min, up to $50k (legal) ; $50k flat (smart contract)
2. Fork of Hester Peirce Safe Harbor (address lack of smart contract coverage & other issues) | $20k min, up to $100k
3. Amendments to Beyer Crypto Bill (carve-out algo stablecoins, improve desecuritization process, better - clarity on not covering DeFi) | $10k min, up to $50k
4. DAO tax safe harbor (cross-category) - proposal to establish a safe harbor for smart contract systems (i.e., if pay a “greater of” %-based or flat tax, a safe harbor for certain tax-related risks will apply).

Policy/Legal Position Paper Bounties

1. Position paper on why DeFi smart contract transactions do not meet definitions of ‘swap’ | $50k min, up to $200k
2. Why Worker-Driven DeFi communities are different from VC-backed communities and legal ramifications | $10k
3. DeFi Functional Overview (functional overview, review against risk frameworks, discuss implications/application of CEA) | $50k
4. Position paper on the MiCA Commission’s proposal, its potential application to DeFi protocols and basis for why its application should be limited in scope and recommendations / modifications of the existent rules to cover risks posed | $30k min, up to $40k
5. Workable AML/KYC Compliance Model - compliance for regulated entities at fiat on and off-ramps | $15k