How We Approach Control and Security

The issue of control is an important one as in the future, the legal wrapper may be holding and managing certain valuable assets belonging to the DAO (if DAO ever decides to transfer those to the legal vehicle). That’s why, although DAObox will be taking the managerial positions at the wrapper, the DAO will have the ultimate control over the legal wrapper and our actions will be limited by the mandate given by the DAO.

The constitutional documents, as designed by DAObox, will subordinate the wrapper’s governing bodies and management to the DAO and resolutions adopted by on-chain voting, whether via Snapshot or otherwise, to the maximum extent possible. Any such resolutions will be binding upon the legal entity and its management.

Furthermore, the constitutional documents will limit the authority of managers on the disposition of material assets and intellectual property held by the legal vehicle, entering into transactions the value of which exceeds USD $30,000 (or another threshold set by the DAO), and performing certain other material actions – any such acts will require the consent of the DAO. Normally, any spending of funds will be in accordance with the quarterly (semi-annual or annual plans or budget) adopted by the DAO.

As the legal wrapper will be subordinated to the DAO, it can pass a resolution on replacing us as managers of the legal entity at any time, as well as on the change of the composition of the managerial bodies, and such resolution shall be binding.

Lastly, as part of a contingency plan, the DAO will possess the ability to designate a representative or assemble a team of trusted agents who will be endowed with the necessary authority to execute enforcement actions with respect to the wrapper as may be required to protect the DAO in any emergency situations.


DAObox reports to the DAO on the material operations of the legal wrapper and financial transactions on a quarterly basis so that everything stays transparent. Separate reports on the most important issues may be delivered immediately upon the completion of the assignments.

It goes without saying that we will be there to respond to the queries and questions that the DAO members may have, participate in the AMA sessions, and guide the DAO on wrapper-related matters.


At DAObox, we understand the paramount importance of security and asset protection. Therefore, we have instituted a multitude of security measures and controls designed to ensure that the wrapper’s assets and property remain secure and intact.

  • Multi-Signature Wallets: In line with the best practices, DAObox employs multi-signature wallets for holding and managing the assets of the legal wrapper.

  • Data Protection: We employ robust data protection measures to safeguard sensitive information. This includes rigorous encryption techniques and secure data storage systems that prevent unauthorized access or data breaches.

  • Operational Security: DAObox maintains strict operational security protocols. These include limiting access to sensitive information to necessary personnel only and employing secure communication channels for internal and external communication.

  • Risk Management: In addition to the above, we have a proactive risk management strategy in place. This involves continuously identifying, evaluating, and addressing potential risks that could impact the security of the DAO’s assets and property.

By combining these comprehensive safety measures with our extensive experience in managing DAO legal wrappers, we ensure that the DAO's assets are well protected, thereby offering peace of mind to the DAO and its contributors.

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