LegallyBullnde

Thought it timely to consolidate all my threads on legal issues here (plus a few from friends)! Will add on over time! As usual, none of these constitute legal advice, & I'll be happy to discuss them, be corrected, or to hear more perspectives. I'm always willing to learn👍 👇

Official Apology Statement: We regret to inform founders that legal structure is not a one-time decision. You cannot: incorporate once and carry it forever assume 2022's setup survives 2025's DD skip the review because nothing has "gone wrong yet" We understand this is inconvenient. We're sorry.

@arcthecommunity 's incubated trading terminal @nocturnaldotxyz closed beta now has with 1,500 users. Thanks to the beta community's feedback— the team has been iterating hard over the last few months. Here's what's been launched. 🧵

.@MeteoraAG is a token AMM, and we need to make tokens great again. Today we’re announcing @BedrockFndn, our attempt to rebuild Internet Capital Markets, with real foundations. Bedrock is a joint venture with @GVRN_AI, a leading LegalTech firm based in Singapore. Bedrock's goal is to create frameworks, innovate with our partners, or solve legal problems and help bring ICM into reality on @MeteoraAG. Additionally, we've formed Bedrock Foundation -- a new independent, ownerless foundation with one goal: to own equity, IP and other assets on behalf of tokenholders. With Bedrock Foundation, we will work together with any @MeteoraAG powered Launchpad to bring tokenized equity to life on Solana. We are also excited to work with existing tokenized equity teams to improve their frameworks with our legal muscle. We will build the public goods for Meteora's partners to leverage, and bring ICM to reality on MeteoraAG.

Who owns the Foundation - a rant from a Wassie in a suit about normalized corruption in our industry. Whenever a team drops their tokenomics and there is a foundation allocation, people immediately assume foundation = team. The fact that this has become 'status quo' is indicative of how fucked we are as an industry. I have previously written about the legal structure of a foundation and what it is meant to achieve. In this rant, I'll be covering operationally what happens, how founders use it to exit scam and why we have somehow all accepted this as an industry. A foundation is meant to be a public goods vehicle. The entity has no owner, it exists for a specific purpose. It will say 'This foundation's purpose is to promote the growth and adoption of XYZ' for example. And its assets are legally to be used for XYZ. Properly set up foundations have professional directors that ensure that whenever assets are used, they are used for the growth and adoption of XYZ. Except most foundations aren't set up properly and many founders / advisors have started using 'foundation' allocations to exit scam and for some inexplicable reason we have accepted this as an industry. Let me give you an example. Lets say we raise 1m USD to build a public library for everyone to use. Within this 1m USD, 200k is used to pay the people running the library after the library is completed. The remaining 800k is to go towards books, furniture, reading campaigns etc run by the Learn2Read Foundation. What normally happens is exactly that. The guys running the library don't own the 800k, nor do they own the books or furniture. What they get is 200k after it is all done. But you know how they can get paid early? Instead of taking the 200k after its all done, what if the library adminstrator decided to 'borrow' 200k from the Learn2Read Foundation and pay it back when he gets his bonus at the end? The Learn2Read Foundation should rightfully be telling the library administrator to go fuck themselves. And this is what would happen in the real world. In crypto however, we have somehow normalized that the Learn2Read Foundation will just give the 200k to the library administrator and then probably forget about getting paid back later. And if the library administrator gets paid 200k up front instead of at the end what happens to the library? The fucking library doesn't get built that's what. Or worse, if the administrator controls the Learn2Read Foundation... he can just overpay his friends and family for books and furniture. And maybe his friend who runs the ExerciseMore Foundation will buy overpriced low quality sneakers from the sports equipment company the library administrator coincidentally set up a few months ago. In other words, we have straight up normalized corruption. Why are there no safeguards? There are - but bad faith founders will do everything to get around them. Many of the foundations I have set up have professional directors, many of whom are former lawyers or governance specialists. They get a bad rep for 'blocking' founders who paint them as rent-seekers and bureaucrats but they are exactly the sorts of checks and balances that stop the 'foundation' = 'team' phenomenon. They stop suspicious founder transactions and on at least two occasions, have reported founders to law enforcement for attempted embezzlement. There are also operational issues. A guy in a suit isn't going to be able to block a founder if the founder literally controls the multisig and can just transfer funds to himself. This is where having independent foundation ops becomes important - because they know their ass is on the line if they market sell all tokens and transfer the proceeds to the founders. Now here is the crazy thing. All of this foundation-team bullshit is only possible because there is no fucking transparency. If everyone can see the Learn2Read Foundation send 200k to the library administrator instead of spending it on books and furniture, I'm guessing we would be arresting the library administrator and the person running the Learn2Read Foundation pretty damn quickly for corruption. If only someone invented a technological solution for ensuring that such transactions couldn't take place in the dark...

DTF means a lot to me because it is built on the principles that attracted me to this industry years ago. Fairness, transparency and a free market of ideas. And with that, optimism. There was once a time when we were genuinely excited by new ideas. When anyone could share a dream and build towards it together. When we believed that together we could build the future of finance. It was a time many of us look back on with nostalgia. Starry-eyed idealists devouring white papers, talking to the community, supporting the people we vibed with and riding with them as they grew from nothing to the largest protocols in the world. We all hope for that spark once more, that fire that got us all excited about the future and our place in it. But we dare not hope too much. Because we all know now that our belief pays the VCs, the founders and 'angel' investors. After 3-4 years of playing the game, we all know now that your belief is what creates IRR for the VCs and funds lambos for the founders and Birkins for their ABGs. Since the Golden Age of DeFi, fairness and transparency have become marketing tools in a bid to attract an ever dwindling pool of believers to deploy their finances into decidedly unfair and opaque projects. "We are for the community!" - says the project that has sold over 20% of their tokens to VCs before doing a 'community' sale at 5x the valuation of their last round, as their earliest investors happily mark up their investment value on their excel sheet. "No insiders get tokens, community eats first" - says the team that has already OTCed out their allocation via 'market making contracts' and 'foundation allocations'. "We are heads down building" - says the founder that took millions in a 'community' round to pay himself an exorbitant salary while doing nothing but partying, 'investing' in and 'advising' other projects as people wait for a token that never launches. Supporting projects became impossible, not because you suck at picking projects but because you were always late. You could never have been early. That white paper you read was only developed after 3 rounds of venture funding. The 'locked' insider tokens have been hedged out, borrowed against or straight up OTCed before TGE. What if we could have an actually 'fair' launch again where people can participate on transparent terms, knowing exactly how early they are to the project? What if we could have actual transparency, where anyone can see where 100% of the tokens are in clearly segregated wallets and programmatically locked up instead of the good old 'trust me bro'. What if you knew you would never be rugged because you knew exactly when the TGE was. And when the token goes live, you know for sure there is an on-chain liquidity pool you could trade in and out of. Maybe you could try to believe again. And so we built DTF with these design principles in mind. Entire supply of tokens visible on chain. Lock-ups enforced programmatically. Tokens to be distributed almost immediately after sale. Liquidity announced, set and locked immediately when token goes live. Projects we can personally back. Investor terms (if any) fully disclosed (we ideally want to get to a world where DTF is the first and last round). The overriding overarching principle - transparency, fairness and decentralised capital formation. We built DTF for those who used to believe, in the hopes that they might believe again. Thanks for coming to my Ted Talk.

@umikathryn Your post needed to come with a trigger warning... Also are we "older workers" now? Fml

Grew up in a diff era @LegallyBullnde

one of the most important things in building out a team in crypto (and arguably anywhere) is you need people who are aligned w your vision the rest can sort itself out later vision aligned company/team = stonks

Founders waste months buried in legal admin. That's time stolen from building. GVRN returns it: • Incorporation in a few clicks • Investor-ready documentation • Legal sign-off, execution built for speed $100M+ in web3 startup value created through our flows. ⚡ Speak to one of our web3 legal experts today

The latest Omni release tightened spreads across the board, especially on majors. For example, spreads on small BTC orders have been cut by up to 90%. This now makes Omni one of the cheapest places to trade for all order sizes. Happy trading!

@nocturnaldotxyz Gn

gn to the nocturnals who enjoy accumulating undervalued memecoins on the Solana blockchain

Variational Omni refunds your losses. Why trade elsewhere?

Some observations about loss refunds in celebration of crossing $500K user trading losses refunded: - On most recent days, @variational_io has refunded between $40K and $65K of user trading losses. - >1.3K traders have received loss refunds (a sizable portion of our daily active users!) - Average/median refund sizes are skewed by on-chain movements for referral loss refund cuts. My guess is that the true average refund is in the ballpark of a few hundred dollars. - The loss refund pool size is going *UP* despite these large distributions. This is a function of our sustainable mechanism, where market making profits fund the pool to return PnL to users. Source: dune.com/entropy_adviso…

Web2 had lawyers that slowed you down. Web3 has GVRN - legal infra that moves at founder speed. $500M+ raised through GVRN. Trusted by top-tier Web3 builders. Now it’s your turn. 🌐 gvrn.ai

Everyone wants a successful TGE. Few actually ship one. Here’s how @initia pulled off a flawless TGE by preparing before the hype — with GVRN as their launch foundation. 🧵👇

Moving forward, all @axisgroupxyz client fundraising will be carried out via @gvrn_ai 's fundraising platform. Their team has put in a lot of thought and effort into this product and we're going to be avid supporters thereof. Commercially, wouldn't it make sense to charge clients by the hour to facilitate the legal workflow of their raise? Yes However, our goal isn't maximum value extraction, our goal is providing clients with the necessary tools that will enable them to raise funds efficiently, seamlessly, and in a fully compliant manner. We look forward to our continued work with the @gvrn_ai Team - onwards!

Introducing Initia Wallet: our most significant upgrade yet. Offering a seamless way for users to interact with your app, regardless of the VM type, without a new wallet installation. Users can connect, bridge, and swap without leaving your app. Integratable in minutes.

apes unhappy they werent the ones invited to paddock but fail to understand that the leaders are working for UR bags 🤷🏻‍♂️🤷🏻‍♂️

@umikathryn @gvrn_ai @TheChunkyOne_ @Vigil_eth @locomotiff_ @0xlegalbeagle @kaiciego The growth = @TheChunkyOne_ and my waistline

Always so sweet to see you guys and to witness your growth 🤍