KIP-39: Kwenta Legal Counsel

Author
StatusApproved
Created2022-10-24

Summary

Kwenta will retain legal counsel via a 2-year token deal. Counsel will ensure that the DAO has legal representation advising it on the changing U.S. regulatory environment and that sensitive deliverables are handled appropriately. Additionally, Counsel will facilitate suitable legal representation for Kwenta in all applicable situations, making relevant referrals within Counsel’s professional network when necessary.

Abstract

Kwenta will offer a 2-year vesting package of 350 KWENTA, vested in 3 month cliffs, in order to retain legal representation from Horizons Law & Consulting Group (“Horizons”) for the DAO.

Motivation

Due to the unpredictable nature of DAO regulation and the severe repercussions that we have seen imposed on other DAOs and DAO contributors, Kwenta will establish legal counsel to ensure the Kwenta DAO is operating in a legally compliant manner while still striving for maximum decentralization. Horizons will also aim to ensure that relevant community members are protected in the event individual contributors require legal representation. Horizons has considerable experience representing DAOs and is an ideal candidate for advising and representing the DAO.

Specification

The Kwenta DAO will issue Horizons a KWENTA package of 350 tokens (approx 111,650 USD at the seed valuation of 100m FDV), which will vest over the course of 2 years with three-month cliffs, in exchange for 2 years of legal advisory and representation. The advisory will begin upon issuance of the KWENTA package.

Horizons will be available for up to 10 hours a month to review KIPs and discuss operational ongoings, ensuring the Kwenta DAO is acting in the best interest of its community members. These hours will accrue in less active times should they be needed during more active periods. Additionally, should a Core Contributor or Governance member require legal representation for an issue directly related to the legality of Kwenta’s operations, Horizons will either defend the individual or make an appropriate referral to an attorney in their professional network if necessary.

Should it become necessary, a Kwenta community member can write a KIP to terminate the engagement for reasonable cause and upon the showing of good faith evidence. Upon termination, Kwenta will be able to clawback any unvested tokens in the compensation package to the treasury.

The DAO will communicate with Horizon’s via the Elite Council and adminDAO. All relevant discussion will be facilitated through these two groups.

Copyright and related rights waived via CC0.