Empowering Gamers through DAOs
How DAOs are Helping Individuals and Communities to Take Control of their Financial Future
Gm Good Contributors 👋
While I have pondered the potential evolution of DAOs in entities such as banks, political parties, or even countries, it is likely that it will take a considerable amount of time before these possibilities become a reality.
However, as I explained in this article, there exist as many DAOs as there are groups or individuals in "real-life".
Today, let's simplify things.
You and Your Frens Can Easily Create a DAO 🛠
Imagine this: a group of frens (one from Argentina, one from Italy, and the last from Thailand) decide to form an eSports team and compete in various tournaments. Thanks to their talent, they won a prize valued at $10,000.
How can they legally distribute the benefits?
Traditionally, they would need to establish a legal entity, open a business bank account, establish a benefit-sharing agreement, comply with tax requirements, and seek legal advice that can help ensure that the prize money is distributed legally and fairly. This process can be tedious.
An alternative approach would be to follow these steps:
Establish the DAO: The group of friends would need to establish the DAO by creating a smart contract.
Configure the multi-sig wallet: They would need to configure the Gnosis Safe multi-sig wallet to require the signatures of at least two out of three members to authorize any transactions.
Transfer the prize money: The prize money can be easily transferred to the DAO's digital wallet, and the team members' wallets can be added as recipients for the funds.
Manage the funds: The team members could spend the funds in, for example, buying NFTs that give them access to new opportunities.
Seek legal advice: While using a DAO can simplify the process of distributing prize money, it's still important to seek legal advice to ensure compliance with tax and other regulatory requirements.
The concept I just presented forms the foundation of the idea behind web3 gaming guilds, which is poised for massive growth and adoption. This concept can be applied to any project involving people from different parts of the world.
It's worth noting that a DAO need not necessarily have its own governance token or NFTs. A multi-sig wallet can serve as a legal entity for distributing income among a group of friends or collaborators.
Please note that this newsletter does not provide legal advice. For assistance with the legal aspects of establishing a DAO Council, we recommend consulting with MiDAO. Their expertise can guide you through the necessary legal frameworks.
For more information, visit MIDAO.
Read 📚
How play-to-earn (P2E) guilds can unlock millions of dollars in liquidity to scale their operations thanks to Unlockd.
Listen 🎧
Ashton Addison speaks to Adam Miller, Co-Founder of MIDAO, on how to properly create a DAO legal entity, why the structure of a DAO matters, the potential avenues to building a DAO, and why it's a no-brainer that DAOs be incorporated to limit personal liability.
Latest DAO News 📢
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ARB Token Trending on Twitter After Arbitrum’s Airdrop Announcement
Anonymous DAO tomi raises $40M for 'surveillance-free' internet
Focus on daily improvement 🌿
Every day in Web3 can be a bit of a rollercoaster ride. With new changes and updates constantly popping up, it can be tough to keep up. But here's how I tackle each morning:
Gratitude: Express gratitude for a new day, even if it's cloudy.
Deep Work: Find your peak performance hours and turn off your phone.
Movement: If you're in the Web3 world, it's important to make time to exercise and move in the real world. After all, a healthy body equals a healthy mind.
Visualization: Before hitting the hay, take some time to visualize your plans for tomorrow. This helps you sort out your thoughts and get organized for the next day.
Persist in this ritual repeatedly, and behold the doors of opportunity swing open wide before you!
Meme of the Week 😁
Gn Good Contributors! 👋