Governance
This WHIP illustrates the legal wrapper of the WiHi DAO.
The IP-holding entity of WiHi should be a Swiss non-profit association. This association is overseen by WiHi token holders: Members of the association are the delegates illustrated in WHIP-0007. WiHi token holders exercise control over the association's general meetings via delegating tokens to these members, which includes the election of the governance committee. The exact voting mechanism follows the principles outlined in WHIP-0007. The association defines the minimal acceptance criteria for members such that Sybil attacks on the voting mechanism are prevented.
The association holds intellectual property and off-chain system funds.
In summary, WiHi should established a Swiss association as a legal entity to handle off-chain governance with the following attributes:
- Non-profit status
- Dedicated to WiHi platform development, deployment, and promotion
- Cultivation of a thriving ecosystem around the platform
- Capability to perform necessary tasks or outsource them
- Token issuance for initial funding and growth funding.
A legal entity is required to minimize the liability risks vis-à-vis the DAO members.
The state of the art way to represent a DAO in the legal world is by using the mechanism of a decentralized autonomous associations (DAAs)[Ganzoni, 2022] as utilized in onocoy. Swiss association are by definition (grassroots) democratic and their voting mechanisms can be put in alignment with token votings.