Organization

How is Kings' Azit DAO structured?

Kings' Azit DAO is organized as a Cayman Foundation Company.

Cayman Foundation Companies take the form of a traditional company limited by shares or guarantee but with certain characteristics of a civil law foundation. A Cayman Foundation Company is a body corporate with a legal personality distinct from its directors and other connected persons. As it does not normally have a shareholder or member Cayman Foundation Companies are considered effectively “ownerless”. Day-to-day management of a Cayman Foundation Company, including the investment of the foundation company’s assets, is conducted by its board of directors in accordance with its memorandum and articles of association.

Why have a legal entity?

Having a legal entity that represents the DAO in the "real world" is valuable for a number of reasons:

• It provides limited liability to DAO participants for the actions of the DAO. Without a legal entity, participants may be individually held liable for anything the DAO as a whole does.
• It is capable of complying with taxation requirements - without a legal entity, DAO participants may be held liable for a proportion of the DAO's income, even if they are not able to access these funds.
• It is capable of entering into contracts with other "real world" entities, of holding assets (including IP rights), and so forth. For a more detailed discussion of this topic, see this excellent blog post (opens new window).