Kings' Azit DAO - DOCS

# Membership

# How can I contribute to Kings' Azit DAO and become a member?

Membership in Kings' Azit DAO is currently limited to accredited investors, as defined under U.S. law. The total number of members will be capped at a maximum of 99 members.

Members have the opportunity to contribute USDC to Kings' Azit DAO by purchasing units representing an ownership in Kings' Azit DAO ("Kings Units"). The members reserve the right to create a Kings Token to represent Kings Units via a Member votes.

Units are sold in blocks. Each block of Kings Units (or 10,000 units) is currently being sold for 10,000 USDC and provide a member with 0.2% of the voting rights in Kings' Azit DAO, along with 0.2% pro rata rights to any proceeds from investments. The per unit number to buy units into Kings' Azit DAO will increase incrementally after every investment Kings' Azit DAO makes.

Each member is be permitted to purchase up to 35 blocks of Kings Units (or 7% in total).

The sale will be denominated in USDC. USDC to US dollar calculations will be provided via a real time oracle feed from Chainlink (opens new window).

# Are Kings Units securities?

Kings Units have not been approved or disapproved by the U.S. Securities and Exchange Commission, any state securities commission in the United States, or any other global regulatory authority.

# Can I contribute Bitcoin, Dai, or other assets to Kings' Azit DAO?

All contributions are currently only limited to USDC, unless the members agree otherwise.

# Why is membership in Kings' Azit DAO limited to accredited investors and 99 members?

As noted above, the U.S. Securities and Exchange Commission and/or equivalent government bodies in other jurisdictions have not determined whether membership interests in Kings' Azit DAO (represented as units) are securities.

In the abundance of caution, the limits in membership and accreditation status for U.S. contributors are put in place to:

  • comply with U.S. securities law;
  • prevent any one party from controlling a disproportionate amount of Kings' Azit DAO; and
  • limit the risk of look through issues for Kings' Azit DAO Members that are organized as funds or other legal entities.

# Are there any other requirements needed to become a member?

To contribute USDC to Kings' Azit DAO, members will need to go through accredited investor, anti-money laundering ("AML"), Know Your Customer ("KYC"), and Office of Foreign Assets Control ("OFAC") checks as defined under U.S. law and as discussed further below. A joining member will need to deposit a sufficient amount of USDC from the member's Ethereum address in order to complete the membership process.

A member will also need to submit sufficient information to verify the potential member's identity for AML, KYC, and OFAC checks, including:

  • uploading a passport or a state issued license;
  • providing a social security number or Tax ID; and
  • providing proof of the member's primary residence.

Accredited investors include:

  • Individuals who have an annual income exceeding $200K or a married couple that has joint income exceeding $300K in the two most recent years and have a reasonable expectation of reaching the same income level this year.
  • Individuals who have a net worth that exceeds $1 million (excluding the individual's primary residence).

With respect to legal entities:

  • Funds and trusts, with total assets in excess of $5 million, which were not formed specifically to purchase the subject securities, whose purchase is directed by someone who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
  • Any entity in which all of the equity owners are accredited investors.

The full definition can be found here (opens new window).

In order to register and validate members, a potential member will need to supply Kings' Azit DAO with sufficient information to assess whether the member meets these legal requirements, which will be confirmed by Kings' Azit DAO's service provider.

==Post Contribution== Once a Member makes a contribution, Kings' Azit DAO's underlying smart contracts will need to whitelist the Member's applicable Ethereum address. The process for validating and whitelisting the Member's Ethereum address will be done in order of contribution and will take at least 14 total days to complete. The process takes 7 days to process the proposal and another 7 days to provide Members the right to "rage quit" if they so choose.

# Why is there a fixed amount of USDC upon submitting an application?

If everyone submits a different amount of USDC, the interests in Kings' Azit DAO would have variable pricing.  If a member "rage quits" then that member could conceivably get back more USDC than he or she contributed.

← Accreditation Process →