Corporate structure for a DAO

A DAO is a blockchain-based organization without a central management body. The rules within such organizations are enforced and defined in the form of smart contracts. It has breathed new life into the world of business models. A DAO has the potential to change the way corporate governance works within new companies and already existing companies. Nowadays, DAOs can be used within a variety of organizations because it is an accessible business model that does not involve third-party intervention, where everyone is equal, and where the system is publicly accessible. In order to operate on a tax-efficient basis and in a corporately viable way, it is important that the DAO is set up in an efficient manner.

We can set up a DAO that is in accordance with Dutch Civil Law, a DAO that will be able to operate all over the world and the structure will be tax-efficient and corporately viable. The Netherlands is known for its friendly business climate. The Dutch DAO structure is very easy and accessible as it allows the DAO to operate easily and efficiently on a global scale, due to the high number of tax treaties the Netherlands has with other countries.

Setting up an efficient company structure for the DAO is done by starting off with a hybrid of centralized and decentralized management. Participants would still have equal rights with regard to the profits, and they can have control over the DAO as well.

After the incorporation of a DAO, there are possibilities to shift to a more or fully decentralized
management, for example by phasing into a decentralized management structure according to the
DAO.

Alternatively, it is possible to set up a DAO with a decentralized management structure from
the beginning of the shift directly from a hybrid management structure to decentralized management.

Regardless of the management structure, participants will hold their profit rights and
investments by new participants are also still possible.

Therefore, there are plenty of ways to organize
the management structure of the DAO, tailored to the desires of the DAO community.

Doing Business International B.V., together with its associated enterprises, assisted in setting up the first DAO in the Netherlands (in conjunction with tax advisors and financial lawyers). This DAO has been set up in accordance with Dutch Civil Law, will be able to operate all over the world and the structure will be tax-efficient and corporately viable. The Netherlands is known for its friendly business climate.

The Dutch DAO structure is very easy and accessible as it allows the DAO to operate easily on a global scale,
due to the high number of tax treaties, the Netherlands has with other countries.

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