DAO Member FAQs

DAO Membership
What type of legal entity are you using for the DAO? 
A Limited Cooperative Association 
Would the chapter directors have ownership in the DAO if they don’t invest? 
No, unfortunately, we can only offer ownership in the DAO if they pay a membership fee. 
Why is there a membership fee and what it is going to be used for? 
This forms the capital that the DAO pools together to invest in the accelerator alongside LPs to invest in portfolio companies. It will be used to support our portfolio companies. 
How big will the DAO be? What is the minimum buy-in rate? 
The minimum buy-in rate for a DAO member is $100. The DAO has no upper limit in terms of members. The number of members in the DAO will simply be defined by the number who have bought in before the closing date.
Can I always sell part of my ownership or there are some limitations in place?
Once you have bought into the DAO membership you must either hold the SG-V tokens allocated to you until the fund wraps up, or choose to sell all of them at any time and withdraw your right to any future returns 
How does one liquidate their position? 
By contacting us by email.  If the accelerator has not yet had a liquidation event, you will receive the price of your investment back. 
Is there any tax liability for non-US participants? 
That would depend on your individual country. Please contact us for specifics.
Token Questions
Do I need to set up a crypto wallet?
Every DAO member must set up a crypto hot wallet in order to take part. We recommend Metamask as it is a very easy and simple crypto wallet to set up. 
Will there be multiple classes of token holders? 
No 
Will tokens be able to be sold on marketplaces?
No
How does the token work? does it only provide you with vote rights, or can you stack it? How will my capital gain be measured, by the difference in the price of the token, or the increased equity value of our portfolio companies?
 You will not be taxed as capital gains since the distribution comes back to you as patronage dividends. It will be taxed at regular income. The tokens will not have a price as they cannot be traded on a secondary market. 
DAO Member Governance
How are you going to manage the size of the DAO from a governance perspective? 
We will index the skills and network of our members and offer them the opportunity to participate in areas that make sense, with the opportunity to earn patronage tokens in return for their added value 
We will ensure we have a robust infrastructure of tooling for voting on decisions on anything from governance or process changes, to decisions on which companies to invest in 
We will invest time in good documentation describing our values and processes More to be added over time as we build out more of the specifics :-) 
How will governance and deal flow work in more detail?
 You can read more about these in our Gitbook here, which will continue to be added to over time 
Contributing to the DAO
How can I contribute to the DAO if I’m not raising rn? I’m experienced in community building, legal in web3, and fintech. 
You can join as a member and tell us your skills and experience on signup. Once you enter the DAO we will get in touch with you to offer opportunities to get involved in anything that might require the skills and experience you hold 
I have a lot of experience and skills. How can I be of value to the SG DAO Organization Structure?
 Soon after you become a DAO member we will send a form to you asking you to tell us more about your skills, expertise, and network. Based on that you will have the opportunity to be of value to the DAO.
How I can contribute additionally to the community? 
Every one of these DAO members has the right to earn DAO patronage tokens, or SG-P tokens, for their work. The rate cards for activities that earn patronage tokens will be available soon after the first members are onboarded 
It looks like there is no relationship between the DAO regular token holders (eg community investors) and DAO patronage token earners (eg active "helpers"). While that is fine as it resembles a traditional LP vs Venture Partner relationship, introducing a dynamic that connects these two roles would be amazing and perhaps allow the "community LPs" who also want to significantly help to earn some type of a multiplier.
 Actually, any DAO member will have invested some money in order to become a DAO member and holder of the SG-V token (‘regular token’ in your words). Every one of these DAO members has the right to earn DAO patronage tokens, or SG-P tokens, for their work. The rate cards for activities that earn patronage tokens will be available soon after the first members are onboarded Only DAO regular token holders can be DAO patronage token earners. 
Startup Scouting & Vetting
How big will be your batch and how often are you planning to run the cohorts?
We will be launching our first cohort in Fall 2022 (exact date TBC) Please see this section of the SG DAO Gitbook for more information on this startup vetting process. This will be added to over time. We will run 3x cohorts per year of 12 weeks each.
What’s the selection process for startups included in this DAO? 
Please see this section of the SG DAO Gitbook for more information on this process. This will be added to over time. 
Is there are any limitations on location? 
No. 
Should applying startups have a US legal entity? 
Yes. They should be a U.S. C-corp. This can be set up after they have been accepted
How will we tackle bias in decision-making on companies?
 A few ways: The Startup Grind community, from which the majority of our members will come, is a fairly evenly distributed global community already. Everyone from this community will be encouraged to join The minimum buy-in amount to become a member of the community will be just $100 in order to enable as many people as possible from across the world to be able to afford to join The SG DAO will ensure its expert groups that form the penultimate stage in investment decision-making (putting together the memos before the final full DAO member vote) are diverse in themselves All SG DAO members will have an equally-weighted vote on companies, irrespective of how many tokens they own
What amount of money can be invested in a startup?
 All our investments will be $100k for 5% on a post-money SAFE 
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