Ethereum

Trying to solve more problems than I cause @a16zcrypto

https://linktr.ee/milesjennings

DUNA AMA

@cowriellc and @milesjennings are talking about Wyoming's new legal entity for DAOs!

What are the implications for a DUNA'd protocol that accrues more revenue (eg via protocol fee) than it can "reasonably" compensate its contributors with? Is the balance considered profit? Does that violate the DUNA regs?

To be clear, paying ppl for “governance” isn’t comp for US tax, it’s a dividend. DUNA is subj to corp tax on its net income, incl amounts it dividends out. And it has to withhold 30% on dividends to foreigners (and do info reporting), so it has to KYC.

building /hatsprotocol | 
proudly mid-curving it since 1995

To be clear, paying ppl for “governance” isn’t comp for US tax, it’s a dividend. DUNA is subj to corp tax on its net income, incl amounts it dividends out. And it has to withhold 30% on dividends to foreigners (and do info reporting), so it has to KYC. https://paragraph.xyz/@cryptotaxguy.eth/on-dunas-and-borgs

Tax partner & digital assets co-head @ Fried Frank. Art appreciatoor. Casts are not advice. Twit: CryptoTaxGuyETH. Deca: https://deca.art/CryptoTaxGuy

I would hope that a DAO organized as DUNA would select Subchapter T tax treatment to eliminate the corp tax you mention.

Is this something that you assist DAOs with?  (Subchapter T)

Social entrepreneur and Web3 / DAO / Co-op Founder. Current Project: ♻️ #GigsGoGreen - a movement for Gig Workers｜#DAO #ReFi #DeFi #NFT｜#Christ believer

Very few DAOs would qualify for sub T treatment.