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INC Company

The INC DAO is represented in the real world by the company Incentive Token, LLC. located in the state of Delaware in the Mid-Atlantic region of the United States. This page describes why it is useful and what rights and responsibilities exist between the company and the DAO.

Having a legal entity that represents the DAO in the "real world" is valuable for a number of reasons:

  • It provides limited liability to DAO participants for the actions of the DAO. Without a legal entity, participants may be individually held liable for anything the DAO as a whole does.
  • It is capable of complying with taxation requirements - without a legal entity, DAO participants may be held liable for a proportion of the DAO's income, even if they are not able to access these funds.
  • It is capable of entering into contracts with other "real world" entities, of holding assets (including IP rights), and so forth.

For a more detailed discussion of this topic, see this excellent blog post.

How can the DAO influence the Company?​

Although not directly specified in the Bylaws, the DAO may instruct directors to take action on behalf of the company, such as signing a contract, hiring a service required by the DAO, or delegating some of the directors' powers to a DAO working group.

Company Expenses​

Running a business is not free and comes with real costs. The directors may request the DAO to reimburse the expenses incurred and the financing necessary for the company to continue operating.