The DeFi project Abracadabra team proposed to create a centralized organisation to protect intellectual property rights and manage expenses.
The platform may appoint a designated fiduciary or attorney.
Despite moving away from the principles DAO, holders of Spell governance tokens will retain the right to make key decisions.
The Magic Internet Money protocol, used for issuing the stablecoin, implies that community members privately fund core services such as hosting, according to the statement.
According to the proposal, such an approach creates certain problems in protecting intellectual property rights. This is highlighted by the project’s forced migration of its blog due to “unfounded copyright claims”.
The initiative could be interpreted as a departure from the spirit of the DAO, despite assurances from the leadership of Abracadabra about its commitment to decentralisation.
«The aim is […] to protect the platform, — explained its leader.
In The Block they noted that the CFTC victory in the case against Ooki DAO in June 2023 created a precedent — governance-token holders face the need for a legal framework, even if this is possible by reducing decentralisation.
In March 2022, SushiSwap voted for the creation of a number of nonprofit organisations based on the same considerations.
The proposed “transfer of power” from Abracadabra to a centralized organization will be determined through a multi-stage voting process involving Spell token holders.
The first phase includes selecting a jurisdiction for the new legal entity. Proposed options — Switzerland, Singapore, Malta and Bermuda.
In the subsequent stages, roles and operations of the new unit will be defined before the final vote.
Recall, earlier in May during the legal proceedings over the legality of blocking Tornado Cash, the US Treasury compared TORN with terrorists from «Аль-Каиды» [designated as a terrorist organisation and banned in several countries].
Previously on ForkLog there was an episode of the podcast DAO Politics, in which lawyers spoke about their personal experience creating a decentralised project.