RE: SPS Governance Proposal - Establish a Legal Fund
(Edited)
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This is obviously necessary, but just as with the validator proposal, we seem determined to overpay.
When I looked into forming a foundation, the legal costs were around $5,000.
Why is this fund five times nmore than that?
Please provide a breakdown of this lavish fund usage....
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I think the fund is for a retainer which most firms require not the actual cost of the set up plus there are more things than just the set up ongoing legal costs, annual filing fees usually etc reports that must usually be filed all would be taken care of by a professional usually in this case. Why ive been talking about we need to get the dao sustainable for its own expenses as soon as possible so any passive income covers the dao manager and any ongoing costs. Then we will stop bleeding and hopefully we can rake in some dollars from upcoming sales with SPL and this time use a lot of it to convert to making are treasury robust. We have a weak treasury for what we need right now.
I think the fund is for a retainer which most firms require not the actual cost of the set up plus there are more things than just the set up ongoing legal costs, annual filing fees usually etc reports that must usually be filed all would be taken care of by a professional usually in this case.The goal is to actually cover all of that within the scope of the budget. That's why it's $25k and not something like $10k. It's hard to know exactly what all ongoing fees there will be and what other surprises could pop up during the process. Governments love to charge stupid fees for "official notarized copies" of documents and such.
As far as getting the DAO to a place where it can be self sustaining, that's my main mission. I'd like to see us keeping pushing our defi expansion to hopefully cover at least my salary with the passive fees. Last time I did the math I think we're about halfway there. The work continues. Glad to see we share a similar outlook on the importance of that!
Thta is 100% my main concern is we should have had you a long time ago but the dao was not really organized like now since you took over managing it we get things done and have a actual oranization. We deff need to make sure that we get the dao to be self covering for your salary so we can keep you bc in my opinion you have done a great job wrangling this behomoth of a project like good lord i see what you have to deal with id rip my hair out evey dollar is worth it at least in my view. Thats good to hear we are half way i thought it was less as long as we get some sales coming in from the split revenue or how ever the deals are arranged then we deff need to retain somee of that in some nice fairly stable defi positions that can fund your salary plus extra costs then can worry about expanding that into a endowment type of thing so the sps dao acts like a college endowment fund almost for the game and its stakeholders whether it eventually is able to pay out distributions or fuel growth of the game. This was always the entire idea of the DAO was to fund the game and the players control it the company gets paid to build it and either charge a fee marked up to make a profit for the shareholders or a split like we did which also would profit for the shareholders and the dao. Both entities if we succeed in the marketing efforts here should be able to do well and get back on track now that we have things in place for both the SPS DAO as well as some of the spending and other things have been reigned in to be a bit more conservative bc were not in a postion to be super aggressive until we have ample cash flow and a large treasury and the company is growing and either plowing it back into growth or if it cant make more with that then start paying dividends out to us as shareholders at some point from the excess income as i dont beleive a sale ofthe company would be in the best interest of the game unless it was all left in place and we were all bought out for a nice premium with agreements in place to continue working the same way but honestly i would probably lean toward distributions when it gets there unelss the payout is huge and it could be a positive sale for the game like the company buying it in that scenario can just take it to the next level or something and cash all the shareholders out in the process or give us equity in the new company in a stock deal but deff dont want to be in a position where it needs to be sold from a position of weakness as we will likely not like the terms lol. Based on what the vision is my guess is we keep ownership of the company and would eventually be paid distributions quarterly or something based on the excess cash flow the comapny makes and eventually the DAO could do that as well and that would be a huge success for everyone involved. Would deff be nice to get back to he valuation in 2020-2021 lol.
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I already addressed this on Discord but I'll post here for posterity:
I agree with your first two bullets but not the third, which confuses me.
Are you suggesting that we employ a lawyer on a retainer to check the work of the lawyer we would be paying a fixed fee to do the work correctly?
Also, there are several lawyers amongst the Splinterlands community, and presumably many more lurking on Hive, so we could see this as an opportunity to keep it in the family.
Still feel the foundation funding should be a separate issue and we should wait til the foundation is done, but i am not stuck on the point.
One final question, why use eth? I am not a fan of tokens with infinite supply and strongly feel the dao needs to start accumulating bitcoin, but why the eth specifically, as opposed to other assets?
I'm suggesting having a lawyer on retainer to discuss which jurisdictions to pursue and be able to provide qualified legal council if/when questions arise.
Lawyers invested in the SPS token or being involved with the DAO would have a conflict of interest.
Not sure what you mean about using ETH... the proposal is suggesting we reserve 25,000 USDC (stable coins) that happen to exist on the ETH blockchain. We're not going to be able to pay legal fees in HIVE/DEC/SPS and the firms that do work with crypto are going to want ETH/ERC-20 generally. Maybe they'd take BTC, but we don't have that. The suggestion to reserve stable coins mean the fund is there if we need it and we don't need to worry about price fluctuations with the ETH token, like if I said, "Reserve 10 ETH." Then we could be talking about a $20k or $50k budget depending on which way the market goes.
i do not think there will be enough for a lawyer to do to justify any retainer
We do not need a lawyer to discuss anything about jurisdictions now and i can give you the link to a legal AI if you want an opinion.
Asking people we know, who happen to be lawyers, about anything is not a conflict of interest.
This is too much, too soon, and lacks clarity.
Matt was VERY insistent the validators be finished by specific developers and at a specified cost. He actually first said 'it doesn't have to be them, the DAO can hire someone else if it chooses' but as soon as Jarvie and PM tossed their hat in the ring at a significantly lower cost, Matt backtracked and basically insisted it would be devastating and irresponsible to switch developers.
Since you bring this point up regularly (a valid point) maybe check in with Matt about the cost of the SPS validator project? He certainly influenced and one might even argue 'strongarmed' that expense.
Hi Jimmy, good to see you around!
There was even a third pitch, by someone who is a tech whizz, and that was at only 100k, so the dao seems determined to waste its money on this project.