[AIP22.2 - Option 1] → Swiss Association
Background on the Association
Proposal: General
Overview of Suggested Structure
In Switzerland, an association is an autonomous separate legal entity formed by individuals or corporate members.
Associations are composed of members, whereas foundations just require a foundation capital and a governing body in order to exist. According to Swiss law, there must be a minimum of two members to constitute an association.
An association acquires legal personality as soon as its intent to exist as an independent corporation is made apparent from its statutes, and the enrollment in the Register of commerce is required only in specific cases (i.e. if the association conducts commercial activities to fulfil its purpose, or if there are specific auditing requirements).
Associations may be established for a political, religious, scientific, cultural, charitable, social, or other non-commercial purpose.
The association I represent Switzerland has already prepared to accommodate the DAO needs, and is ready to start working with the DAO in days’ notice if this proposal was to pass. The association members have been involved in the blockchain and defi space for the last 3 years, and are skilled ecosystem players.
Management and Operations
The association’s general meeting is the supreme body and can appoint or dismiss the association’s management. Each member has one vote. The meeting will set the rules on qualification for membership and any admission or membership fees. The general meeting usually elects a management committee of officers who have day-to-day responsibility for running the association, including hiring staff and committing the association legally.
Major Use Cases
The purpose sets out the idea behind the association and its area of activity and is the reason why it was set up in the first place.
I.e. an association can support, develop and assist projects involved in the developing and distribution of open source software like DLT software, by making scholarships, maintenance allowances, registering and managing intellectual property rights, grants or awards tenable to entrepreneurs, students and individuals in industry and commerce. The Association can as well support the development of new features and capabilities of a blockchain project through the engagement of third parties.
Control
Governing bodies of a Swiss Association are:
- Association’s General Meeting
- Board of Directors
- Auditors (if appointed)
Reporting
A Swiss association must keep proper accounts, but can decide whether or not to be externally audited unless two of the three following conditions apply in two successive business years:
- Total assets of CHF 10 million
- Turnover of CHF 20 million
- Average annual total of 50 full-time staff
Proposal: Details
Scope of Engagement
Purpose of the engagement is the contribution to the development, growth and education of any activity related to Abracadbra DAO like:
- Supporting the development of new features and capabilities for the Abracadabra platform, also through engagement of third parties
- Supporting the Abracadabra community to increase the adoption and use of the Abracadabra platform products and services
- Engaging with other projects and related communities to enabling partnerships and collaborations
- Educating the blockchain community about the benefits and capabilities of the Abracadabra platform
- Organizing events, meetups, and other community-building activities to promote the Abracadabra platform
Responsibilities
The engagement of the association is related to specific activities and tasks, which are regulated through agreements between the DAO and the Association, with the consequence that the related responsibilities are linked to those agreements.
Proposed Structures and Engagement Terms
The engagement with the association shall be regulated by specific agreements related to specific activities and/or tasks
Fees and Costs Involved
The DAO shall support the Association by funding it through donations or by participating in the costs for the activities indicated in the agreements. The initial proposal is to allocate 20k USDT yearly for the maintaining cost of the association.