Questions about Core Units

Hey everyone, I’m working on a proposal for a Marketing Core Unit and running into some issues I think the DAO should consider with regard to how Core Units will operate:

  1. How to bill for taxes?

If organized as a Delaware-based LLC, the organization would need to file state and federal taxes. Should Core Units try to estimate their tax liabilities and incorporate them into budgets as they go or is the DAO just planning to cover taxes once they’re incurred?

  1. How to handle stock?

If Core Units are businesses that strictly work for the DAO and there’s no reason to expect distributions of capital apart from payroll and bonuses covered by the DAO, giving Facilitators all of the stock shouldn’t be a problem. It’s easier to gives shares to one person now than to try and claw them back from a handful later.

That said, giving the Facilitator all of the stock/responsibility means they hold all of the liability if, for whatever reason, the DAO couldn’t or decided not to cover a Core Unit’s tax liabilities. The overarching question here is: “how do we ensure Facilitators aren’t taking on unreasonable liabilities?”

One solution might be to ensure any buffer in budgets will be enough to cover taxes and ensure that the company will repay any unspent buffer to the DAO with a clause in their articles of incorporation.

  1. Where should IP be assigned?

This issue came up on the Community Call this week (2/9) and The Dai Foundation was proposed as a solution but how do we ensure that IP ends up there and who’s operating that Foundation?

We need to ensure any employment or freelancing contracts used by Facilitators assign that IP to the DAO and not just the Core Units themselves.

  1. How to handle contingencies

I note in the “Team Structure” section of the marketing proposal that the proposed structure assumes the existence of Core Units or roles for handling design, legal, and technical support and I’m sure marketing won’t be the only Core Unit with similar contingencies.

I’m aware of proposals for a Marketing/Comms/PR Core Unit, GovComms, and Business Development and there are also proposals being drafted for more focused content production efforts like the Community Portal, Maker Academy, and Voices of Maker Podcast.

I believe Maker could benefit from elements of all of these proposals and think we need a way of surfacing how Core Units plan on interacting with each other. If there’s not a Core Unit for design, for example, it would still be nice to have a go-to person or group of people that multiple Core Units could rely on.

  1. More DAO-Ops

Who’s aggregating proposed budgets for Core Units?
Do we want/need a Code of Conduct? If so, how will it be enforced?

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NOT Tax Advice for Americans like me, I am not a tax attorney, or tax accountant–nor do I ever wish to be one–I would rather die poor, broke and lonely than to become one :slight_smile:

If you get paid as a “freelancer” via DAI, and DAI is directly deposited to your Ethereum Wallet Address–you will incur a Tax Liability–think of it as an airdrop. If you need to turn that DAI to Fiat, you will incur a short-term capital gain.

If your Core Unit sets up a Delaware-based LLC, you could use a service like Accountable–which has been looked at by Community Members @amyjung @juanjuan etc. – check out the presentation – they do payroll, summary of expenses, convert your DAI to Fiat (for a fee) and send you a W-2 at the end of the year (from what I understood).

Are you referring to MKR tokens? Not sure I understand the question.

In my opinion–the Governance Facilitators + MKR holders/community.

I like to believe that we have good solid people in this Community. IMO we all have good intentions, good hearts, and since the idea is to achieve a 100% decentralized protocol–it will be hard to control All Maker Community members. Kind of how today you have these BTC Maxis saying/voicing anything and everything on social media. It will be impossible for anybody to blame one central entity known as “Maker” as we aim to be 100% decentralized and you won’t be able to point to finger to the DAO. Again, IMO. But yea–I like to think that we will All be responsible, respectful, and spread love worldwide.

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Thanks for the reply! When talking about stock, I mean stock in whichever of the Core Units that decide to incorporate.

I hear you on the code of conduct. Much as I like the idea of transparency, I don’t think the code of conduct matters that much until it gets violated and in that situation, it doesn’t really matter if there’s a code or not so long as the community deals with the issue.

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Contributors are solely responsible for their own taxes IMO. I don’t think Maker should deal with separate payments to contributors to cover taxes.

If we accept contributors are responsible for their own expenses and business execution risk, then I feel this point is moot. Contributors can set up their companies however they see fit.

Agree 100%. For any work product that is not produced/issued under an open source license, the contributors and DAO would need to negotiate who owns the IP. Luckily, most work product is open source.

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