Legal Structure of RelDeFi DAO: Overview

$RLDF DAO

The RelDeFi Decentralized Autonomous Organization (DAO) functions as a legal entity that confers ownership rights to holders of the $RLDF token, encompassing all critical components of the protocol, the token itself, and associated intellectual property. This framework ensures that any modifications to contracts or deployment of resources can only be executed following explicit approval from the RelDeFi DAO Governance system. This governance mechanism is integral to maintaining protocol integrity and ensuring that actions are in line with the collective decisions of the token holders.

Legal Structure of RelDeFi DAO: Overview

RelDeFi DAO has adopted a legal structure that will be under the RelBank. This structure enables RelDeFi DAO to engage with external entities and adhere to legal and regulatory requirements effectively. The RelBank, recognized under the Cooperative Societies Act, established RelBank DAO as a traditional banking system, later not intended to be a partnership or an investment company with fully decentralized. The agreement stipulates the DAO's mission, membership criteria, non-discrimination policy, and decentralized governance approach. Members interact through a designated smart contract, maintaining rights and obligations, including casting votes and managing DAO activities. The RelBank ensures limited liability for members and offers protection for their assets.

RelBank: Features and Governance

The choice of an unincorporated RelBank as RelDeFi DAO's legal form offers flexibility, minimal formalities, and limited liability, resonating with the DAO's ethos of decentralization and efficiency. This structure facilitates tax compliance, with RelDeFi DAO filing as a C-Corporation for federal tax purposes, thereby managing taxes at the entity level without affecting individual members. The governance of RelDeFi DAO is conducted via cryptographic consensus through a designated smart contract, where members use cryptographic units to participate in decision-making. The RelBank cooperative society, a group of people forms a voluntary association to benefit the members and work for the betterment of society, especially for the weaker sections. According to “The Cooperative Societies Act 1912”, a cooperative organization is “a society which has its objective for the promotion of economic interests of its members by cooperative principles. Membership in RelDeFi DAO is voluntary and open, with eligibility criteria and admission processes defined in the agreement. The structure and governance established by RelBank enable RelDeF DAO to operate transparently, protect member interests, and comply with legal standards, supporting the DAO's community-driven initiatives and fostering growth in the blockchain space.