KaliCo for DAO Business
December 13th, 2021

DAOs are coming of age and entering everyday life. Following the launch of MolochV2 for investors in January 2020 and Compound governance for protocols shortly after, the use of web3 org tech has grown dramatically, commanding billions of dollars in digital assets and employing thousands.

The next wave of DAO adoption will interface with CeFi and other traditional elements to complete this picture. Users will be able to run their entire financial lives online and coordinate with employers and investors on and off-chain, all while maintaining their autonomy as web3 citizens.

Some pain points persist to get there, but will be programmed around. For example, when operating at scale, many are faced with legal frictions: What kind of structure should I use? How will I make agreements? How can I set up a bank account? What happens when there are disputes?

Notably, despite the permissionless nature of blockchains, legal liabilities apply to people organizing and carrying out business. Dovetailing to these needs, there has been great progress in researching and open sourcing solutions to clarify compliance so DAOs can get more done without blockers.

KaliDAO , as a contract framework, and KaliCo as a business application, unites and strengthens these insights into programmable legal tools for DAOs and their communities today.

KaliDAO Contracts

For DAO developers, the beauty of the Moloch and Compound contracts lies in their simplicity. The code is easy to reason around. There is very little clutter or bloat. This also presents less of an attack surface, giving builders more confidence to make modifications. It is therefore unsurprising that these frameworks are the most popular for running digital orgs.

Embracing this minimalist design philosophy, KaliDAO synthesizes the core Moloch and Compound contracts with more contemporary techniques, such as the Solmate solidity library , to keep momentum for well-known DAO types while tackling the high transaction costs of public blockchains.

The code is written for maximum legibility and should be the last set of contracts a DAO developer ever needs to read. It is the goal, after all, to create frameworks that are not just run by a select few who design inscrutable arcana, but rather, to progress with the full wisdom of more builders.

On this foundation, KaliDAO is also highly flexible to work on, with overridable functions in case a developer wants to make their own modules. Meeting different users where their needs take them, there is also an extension interface that allows DAOs to select new features as contract apps, giving them the ability to evolve over time.

Currently, the core contracts are complemented by the following app extensions for the most common user interactions: Crowdsale ('token sale'), Redemption ('ragequit'), and Tribute ('escrow for shares') , which can be configured at deployment or added by proposal.

Upgrading Clubs and Funds

Familiar to investment clubs, KaliDAOs can deploy with non-transferable shares and accept members through typical application proposals, as well as update transferability over time if they want to open things up. Demonstrating the current extension set, this vetting can include tribute in any asset, including NFTs, in return for DAO shares, or be further streamlined by putting shares up for immediate purchase or airdrop. Members can redeem these shares for DAO assets, and redemption windows can be configured to give DAOs time to breathe, as well.

To make integrations easier, KaliDAO shares are ERC20 tokens. A KaliDAO share, therefore, could be used as collateral in DeFi, or vested over time to founders and investors. These tokens can also be delegated, sent, and voted gas-lessly, by incorporating EIP-712 “meta transactions” and related interfaces. Extensions can also provide for NFTs to be given claimable voting weight.

KaliDAOs are ultimately built to execute a full range of preferences in running an org on a blockchain. To that end, each proposal type can be configured to support a quorumor supermajorityrequirement, allowing users to toggle different thresholds - for example, payments might be given a lower approval setting than changing voting periods. Actions are also abstracted by the use of "low level calls" - KaliDAOs can interact arbitrarily with other contracts, allowing members to mint assets, different classes of shares, as well as become a voting block in other DAOs.

KaliCo Ops

The KaliDAO contracts, user application and services are designed to fit snugly together in running a compliant web3 business, or KaliCo .

Instant Structuring

A KaliCo can select from a range of legal templates to wrap an org on deployment in the alpha application, including a standard LLCoperating agreement (with e-filing through LexDAO ), a UNAagreement for non-profits, a membership Charteror Code, as well as a Series LLCformation automated under the Ricardian LLC network (also maintained by LexDAO). These clickwrap structuring options will help users avoid routine setup costs and uncertainties.

Programmable Compliance

A whitelisting system is provided to allow anyone to verify accounts for KaliCos as a preferred list of members or sale participants. As these lists are stored in a merkle root , they can efficiently hold unique data for hundreds of thousands of users.

While this system is open to the public, LexDAO and other partners will help curate lists of accreditation and other qualifications based on different jurisdictions to bootstrap fundraising and other opportunities for KaliCos.

Digital Jurisdiction

KaliCos will have access to battle-tested escrows to make milestone payments and also have recourse to professionalized dispute resolution services through the beta application and supporting contracts . With payment and ADR as part of a dedicated user flow, hiring contractors, making grants, and DAO2DAO business can be done more predictably, without needing to involve the traditional legal system to receive judgment awards.

Integrated Services

In addition to ADR, legal referrals and consultations will be made available to KaliCos through the beta application, helping users avoid the stress and fatigue of hunting down lawyers and other providers to help them with legal questions and accounting.

Users should never have to leave their KaliCo dashboard to run their business and manage digital assets.

Get Involved

The KaliDAO contracts are entering audit and the KaliCo application is currently in alpha. We welcome feature requests and feedback on our vision for more affordable and efficient DAO-run businesses.

If you would like to participate in beta testing or are a service provider interested in joining our network, reach out .

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