I believe two things to be fundamentally true in relation to DAOs and the wider Web3 ecosystem:
- DAOs are growing rapidly.
DAO Treasuries surged 40X to a whopping $16B amidst the bull market of 2021. In today’s choppy market this figure still stands at an impressive $11B.
2. Regulatory scrutiny and pressures are increasing (and will continue to do so).
This is clear with the circulation of Model Acts such as the DAO Model Law and with the recent announcement by the US government that in the 2023 tax year, crypto exchanges will be required to issue a 1099-B.
DAOs are the future of collective capacity. They represent an unprecedented ability to coordinate and organize resources and people towards a common cause. But, for DAOs to continue to scale and build at the rate required, they need to be able to provide a legal and compliant employment environment for their contributing workforce.
Specifically, they need to be able to answer these questions;
- How do we legally and compliantly pay contributors in multiple countries with a mix of fiat and crypto without the intense operational overhead?
- And, how can we support our contributors in managing and paying their taxes, regardless of their compensation structures or regulatory jurisdiction?
Without the answers to these, both DAOs and their contributing members risk hefty taxes, fines, or even jail time.
So far, this is a conversation that has been put into the “too hard basket”. No one is willing to do the heavy lifting on token payroll or prefers to hide under the sheets in the hope that the crypto-tax monster doesn’t get them.
Not us.
We understand the need for a solution to compliant token payroll and crypto taxation is so critical to the next phase and continued growth of DAOs that we’ve tackled it head-on.
Our proprietary tax engine has an integrated token and fiat payroll system. We handle the calculation of withholding taxes and delivery of tokens to contributors based on the existing tax laws of their jurisdiction for tokens, RTUs, RTGs, RTAs and more.
- DAO / Web3 contributors will receive a comprehensive, conservative and predictable tax bill each month
- DAOs / Web3 organizations will be able to use crypto in their compensation package compliantly
- Contributors will have no unexpected tax burdens and legal ambiguity for compensation that they receive
WorkDAO’s goal is to provide a contributor experience second-to-none for your DAO or Web3 native organization.
We know that reducing the burden of compliant tax management is key. And, by being at the forefront of the increasing regulatory pressures, that enabling legal and compliant compensation and token payroll structures is critical.
With this solution, we hope to facilitate the continued growth and innovation in the Web3 space.
If you’re struggling to find the answers to your token payroll or tax problems, come speak to us: https://www.theworkdao.com/