Our Legal Structure: The DAO LLC
A purely on-chain DAO faces significant legal risks. In most jurisdictions, it could be treated as a "general partnership," meaning every token holder could be personally liable for the DAO's actions and debts.
To solve this and operate professionally in the real world, TokenTrip is protected by a legal wrapper.
What is a Legal Wrapper?
A legal wrapper is a formal legal entity (like an LLC or a Foundation) that serves as the off-chain interface for our on-chain DAO. It provides two critical benefits:
- Limited Liability: It shields all TKT holders and DAO members from personal liability. Your personal assets are protected.
- Real-World Capabilities: It gives the DAO a legal personality, allowing it to:
- Open bank accounts to handle fiat currency (USD, EUR, etc.).
- Sign legally binding contracts with partners like hotels and event organizers.
- Own intellectual property like the TokenTrip trademark and domain name.
- Hire core contributors and pay salaries.
Our Choice: The Marshall Islands DAO LLC
We have selected the Republic of the Marshall Islands (RMI) DAO LLC as our legal structure. This modern, forward-thinking jurisdiction is ideal for a global, decentralized project like TokenTrip, offering significant flexibility and recognition while being crypto-friendly.
The legal documents of our LLC are designed to ensure that the on-chain DAO remains the ultimate authority. The LLC acts as a servant to the DAO, executing the will of the community, not the other way around.