DAOrayaki DAO Research Grant：
Fund Address: 0xCd7da526f5C943126fa9E6f63b7774fA89E88d71
Voting Result：DAO Committee Yes
Grant Amount：220 USD
Category: (FLAMINGODAO, NFT focused DAO, Delaware law, Accreditation Process, Decentralized Finance (DeFi), OpenLaw, The LAO, MolochDAO, Accredited Investor, DApps, Operating Agreement, Rage Quitting, Subscription Agreement)
Flamingo 是一个专注于 NFT 的 DAO，旨在探索可拥有的、基于区块链资产的新兴投资机会。 NFT 不仅仅是猫的图片。 它们包括数字艺术、收藏品、游戏内资产和其他有形资产。 这些新形式的数字资产将在帮助创建、货币化和激励在线数字内容方面发挥越来越大的作用。
NFT 不可互换，因此它们在数字世界中引入了一种新的稀缺形式。 它们可以代表数字或现实世界的资产，使用区块链网络提供可验证的真实性和所有权证明（假设它们是由原作者或所有者创建的）。
区块链开发人员早在 2016 年就开始引入 NFT，像 Age of Chains 和 Rare Pepes 这样的项目使用比特币来创建区块链交易。随着 Cryptokitties 的推出，这些早期的实验在 2017 年至 2018 年的平缓时期演变成更大的项目。 似乎一夜之间，Cryptokitties 席卷了以太坊生态系统，产生了数以万计的交易并堵塞了网络，因为用户相互交易可爱的猫。
尽管近年来对 Cryptokitties 的兴趣可能有所减弱，但 NFT 的机制和增长并未减弱。 下一代 NFT 平台和市场正在激励新一代创作者将艺术品、数字土地和游戏内物品数字化。 最近，我们看到了下一代 NFT 和平台的出现，扩展到数字艺术、土地购买，我们开始看到 NFT 与去中心化金融“DeFi”趋势相交。
NFT 的增长才刚刚开始，因为 NFT 代表着数字财产和知识产权的数字化和金融化。 数以万亿计的创意作品在互联网上盘旋，除非通过许可模式，否则很难货币化。 NFT 寄希望于将所有权经济带回互联网。 创作者可以创作、出售和分割作品的所有权，开启创作的新篇章。 NFT 可以是：
在更长的时间内，NFT 抱有越来越金融化的希望，与其他基于区块链的核心金融原语互动。 它们可能被证明是去中心化解决方案的核心原语，并且可能越来越多地成为新兴元宇宙和其他游戏平台货币化的基石。
Flamingo 旨在在这个新兴的生态系统中站稳脚跟，将 DAO 的“蜂巢思维”带到 NFT 世界。 Flamingo 将为其会员提供开发和部署以 NFT 为重点的投资策略的能力。 使用 Ether 或其他一些基础数字资产购买 NFT。 购买后，Flamingo 可以向多个不同的方向发展。 成员将有权利和能力将其 NFT 资产进行派系化。 任何购买的 NFT 都可以借出、持有、展示在数字艺术画廊中，或用作其他 DeFi 平台的抵押品。 方向由会员决定。
Flamingo 是一家特拉华州有限责任公司。 Flamingo 会员的权利和义务在运营协议中规定（当您被证实为 Flamingo 做出贡献时将提供），并由特拉华州有限责任公司法补充。 参与者应聘请自己的顾问来评估是否以会员身份加入FLAMINGO。
Flamingo 的核心是会员管理，并依靠 DApp 和相关的智能合约来促进 NFT 的购买。 此外，在适用法律允许的范围内，Flamingo 的运营协议在每种情况下都明确限制了会员的责任并限制了会员之间的任何信托义务。 此外，Flamingo 依靠服务供应商（最初是 OpenLaw）代表会员促进各种行政职能，包括准备和发送年度 K-1 税表、更新和维护 DApp、验证与选择购买项目相关的信息、 并处理在 Flamingo 的生命周期中可能出现的其他交互。 对于这些服务，服务提供商将根据时间表收取费用。因此，Flamingo 的运营协议是由 OpenLaw 的外部法律顾问准备的。
根据运营协议的规定，除特拉华州法律另有规定外，Flamingo 的任何会员（或前会员）均不承担任何超出会员对 Flamingo 缴款金额的义务，另外：
- 会员在 Flamingo 的未分配利润中的份额，如果有的话；
- Flamingo 分配给该会员的任何金额。
在适用法律允许的最大范围内，会员对 Flamingo 或任何其他会员不承担任何信托责任。 根据运营协议，会员同意互动并参与公平交易。
如果 50% 或以上的 Flamingo 会员或其代表（以会员单位衡量）投票批准修正案，则运营协议的条款和规定可能会被修改。 投票将基于成员在投票时持有的 Flamingo 单位数量为准。
Flamingo 的每个会员必须依靠会员自己的税务和法律代表来了解加入 Flamingo 或通过 Flamingo 进行购买的税务后果。
Flamingo 的会员资格目前仅限于美国法律规定的合格投资者。会员总数上限为 100 人。会员有机会通过购买 100,000 到 900,000 单位代表 Flamingo “Flamingo Units”的所有权来为 Flamingo 贡献以太币。
将以 100,000 块为单位出售。每块 Flamingo 将以 60ETH 的价格出售，并为会员提供 1% 的 Flamingo 投票权，以及 1% 的购买收益按比例分配的权利。每位会员将被允许购买 9% 的 Flamingo 单位。 LAO 将获得 200,000 单位的 Flamingo 以帮助其制定 Flamingo。此外，会员保留通过会员投票创建代表 Flamingo 单位的 Flamingo 代币的权利。
Flamingo 单位尚未获得美国证券交易委员会、美国任何州证券委员会或任何其他全球监管机构的批准或拒绝。 但是，所有贡献目前仅限于以太币，除非成员另有约定。
如上所述，美国证券交易委员会和/或其他司法管辖区的同等政府机构尚未确定 Flamingo 的会员权益（以单位表示）是否属于证券。为谨慎起见，对美国贡献者的成员资格和认证状态的限制是为了：
- 限制以基金或其他法律实体形式组织的 Flamingo 会员浏览的风险。
为了向 Flamingo 贡献以太币，会员需要通过美国法律定义的合格投资者、反洗钱“AML”、了解您的客户“KYC”和外国资产控制办公室“OFAC”检查，如下文进一步讨论.加入会员需要从会员的以太坊地址存入足够数量的以太币才能完成会员流程。
会员还需要提交足够的信息来验证潜在会员的身份以进行 AML、KYC 和 OFAC 检查，包括：
- 年收入超过 20 万美元的个人或最近两年共同收入超过 30 万美元的已婚夫妇，并有合理预期今年达到相同的收入水平。
- 净资产超过 100 万美元的个人。
- 总资产超过 500 万美元的基金和信托，专门用于购买标的证券，其购买由在财务和商业事务方面具有足够知识和经验的人指导，以评估潜在证券的优点和风险投资。
一旦会员做出贡献，Flamingo 的基础智能合约需要将该会员适用的以太坊地址列入白名单。验证和将成员的以太坊地址列入白名单的过程将按照贡献的顺序进行，并且至少需要 7 天才能完成。该过程需要 4 天时间来处理提案，另外 3 天时间为成员提供“怒退”的权利，如果他们愿意的话。
在会员入职期间，会员将被要求提供适用的文件，以便 Flamingo 验证您作为合格投资者的身份。这可能包括：
- 各种表格，包括 W-2 表格、1099 表格、银行或经纪报表、其他证券持有报表和其他适用文件，以确保您符合合格投资者的定义。
投票权将基于每位会员针对向会员提出的任何相关投票所持有的 Flamingo 单位总数。在 Flamingo 生命周期的各个阶段，会员将被提示通过 Flamingo DApp 进行投票，包括评估购买决策和/或其他与 Flamingo 相关的战略决策。投票将通过基于区块链的智能合约和基于以太坊区块链上维护的所有权记录的 DApp 进行。
成员无需对所有事项进行投票。在任何时候，会员都可以通过 DApp 指定一个以太坊地址来转让或“委托”会员对购买决定的投票权。授予任何投票权的决定完全取决于每个成员。此外，会员可以随时通过 DApp 取消和/或重新委托其投票权。
Flamingo 完全由会员通过民主投票方式领导和管理。会员需要有一些评估或购买数字资产的经验。除非另有约定，为保护隐私和防止抢先，会员将定期同意将 Flamingo 的一部分资产分配到 Flamingo 服务提供商最初维护的一个侧袋中（即 Flamingo 资产的 20%），目的是这部分资产由成员管理。一旦搁置，会员可以向其他会员提议购买一个或多个 NFT。如果提案获得通过（如下所述），会员本人或服务提供商将采取措施收购相关资产。
侧袋资产的过程将通过 Moloch 式投票（即链上投票）进行。 每个收集的资产将搁置等待4 天的投票期，会员有 3 天的时间“怒退”。如果在 4 天内，赞成票多于反对票，则资产将被搁置。如果“否”票多于“是”票，则侧袋将不会通过。个人收购决定通过 dApp 进行，不需要花费 gas。每个成员都有机会向其他成员概述和提名 NFT 或 NFT 相关项目或机会。一旦被提名，会员或会员代表将有权投票决定是否支持该提案。
成员在决定收集、购买、持有或获取NFT 方面拥有完全的权力。为了保护隐私，会员可以创建可用于做出购买、收集或其他收购决策的资金池。 Flamingo 的会员可以对他们想购买的任何 NFT 进行投票，如果投票通过，服务提供商或会员可以代表 Flamingo 购买。
在决定 Flamingo 应该购买什么产品时，会员可以自由联系艺术家、收藏家、游戏设计师、元创作者或其他第三方，以深入了解趋势、风格和其他流行信息。对于会员与这些第三方之间的沟通，Flamingo 将维护 Discord、Telegram 或其他相关沟通渠道。如果会员要求，Flamingo 的服务提供商可以安排会议或促进与任何创作者或艺术家的其他互动，以获取正在考虑收购的 NFT的可能性。成员还将有策展人就特定 NFT 的风格、质量、趋势和/或评论寻求帮助和建议。此外，会员有权控制 Flamingo 的所有操作，任何更改都应由服务提供商实施。
如果成员对 Flamingo 的表现或管理不满意，Flamingo 拥有一定的强权，可以让成员撤回其资本。这种权利——通常被称为“怒退”——赋予成员一定程度的控制权，以增加他们参与 Flamingo 和使用任何出资的资本。尽管 Flamingo 是由会员指导和管理的，但会员没有义务参与任何提议的购买。一旦通过 dApp 授权购买，所有成员将有权选择退出购买并收回他们为 Flamingo 贡献的任何未部署资金（即“愤怒退出”）。此外，经营协议中规定了愤怒退出的权利，并通过 DApp 和基础智能合约约束。
会员可以随时愤怒地退出 Flamingo，包括在购买任何 NFT 之后。唯一的限制是特定成员投票赞成的任何提案最初都由 Flamingo 的智能合约处理。如果成员愤怒退出，则该成员按比例分配的任何未分配出资部分将退还给该成员。会员的 Flamingo 单位已退出（即“烧毁”），会员将失去参与未来购买的任何权利。如果会员想出售其在 Flamingo 中的权益，这是允许的，但需得到其他会员的批准。
一旦针对特定的 NFT 提交提案，提案将提交给 Flamingo 成员以决定是否提名 NFT 进行购买。如果购买提案被提名，Flamingo 成员将就是否购买 NFT 或有争议的 NFT 进行投票。如果通过 DApp 获得批准，服务提供商或会员将代表 Flamingo 的会员购买相关的 NFT。购买可由 Flamingo 持有或根据每个成员持有的 Flamingo 单位数量一部分以代币的形式分配给每个成员。这些购买取决于 Flamingo 的会员资格，NFT 可以在各种数字市场（SuperRare、OpenSea 等）和个人所有者中间购买。
Flamingo 会直接购买 NFT，但是如果 Flamingo 成员想直接投资软件公司或平台，运营文件中没有任何内容限制这些类型的策略。 Flamingo 的目标是为以太坊生态系统中的 NFT 创建一个基金。 Flamingo 的会员将为他们希望在 Flamingo 融资的 NFT 类型制定购买计划。随意提交有关该领域任何内容的提案。
Flamingo 的成员可以通过多数票来结束 Flamingo。 其他情况包括司法命令解散或处置 Flamingo 的所有资产。如果发生解散，由成员通过多数票任命的人员将根据运营协议的条款处理 Flamingo 。
解散时，Flamingo 成员负责与清算相关的费用。 产生的任何额外损失或负债将按照运营协议的条款进行，服务提供商保留预留资金以促进解散活动的权利。 此外，在运营协议中，会员同意标记并拖延条款，以处理会员希望将 Flamingo 的所有资产转让给另一个实体或一方的可能性。 只有在绝对多数成员投票以实现此类转让时，才会触发这些权利。
Flamingo 使用各种智能合约（例如 MolochDAO 的 v2 智能合约）来管理其活动。 智能合约主要用于促进：
- 收集会员对 Flamingo 的初步贡献；
Flamingo 的初始服务提供商 OpenLaw 与 MolochDAO 合作开发了 MolochDAO v2智能合约。 此外，Flamingo 智能合约已通过 ConsenSys Diligence、MolochDAO 和 MetaCartel 的审计。
Aaron Wright - OpenLAW 的联合创始人，以及 Cardozo 法学院的教授。
Priyanka Desai - 目前领导 OpenLaw 的运营，该项目是 Flamingo 和 The LAO 背后的项目。
Medium : https://medium.com/@FLAMINGODAO
FlamingoDAO: the first DAO incubated and formulated by The LAO community.
DAOrayaki DAO Research Grant：
Fund Address: 0xCd7da526f5C943126fa9E6f63b7774fA89E88d71
Voting Result：DAO Committee Yes
Grant Amount： 220 USD
Category: FLAMINGO DAO, NFT focused DAO, Delaware law, Accreditation Process, Decentralized Finance (DeFi), OpenLaw, The LAO, MolochDAO, Accredited Investor, DApps, Operating Agreement, Rage Quitting, Subscription Agreement
Brief Overview About FlamingoDAO
Flamingo is an NFT-focused DAO that aims to explore emerging investment opportunities for ownable, blockchain-based assets. NFTs are not just cat pictures. They encompass digital art, collectibles, and in-game assets and other tangible assets. These new forms of digital property are posed to play an increasing role in helping to create, monetize, and incentivize online digital content.
NFTs are not interchangeable, and they thus introduce a new form of scarcity in the digital world. They can represent digital or real-world assets, providing verifiable proof of authenticity and ownership (assuming they are created by the original author or owner) using a blockchain network.
Blockchain developers began introducing NFTs as early as 2016, with projects like Age of Chains and Rare Pepes using Bitcoin to create blockchain trading cards. These early experiments morphed into larger projects during the halcyon days of 2017 to 2018, with the launch of Cryptokitties. Seemingly overnight, Cryptokitties took the Ethereum ecosystem by storm, generating tens of thousands of transactions and clogging the network as users traded lovable cats with one another.
While interest in Cryptokitties may have waned in recent years, the mechanics and growth of NFTs has not. Next generation NFT platforms and marketplaces are incentivizing a new generation of creators to digitize artwork, digital land, and in-game items. Recently, we have seen the emergence of next generation NFTs and platforms, expanding into digital art, land purchasing, and we are beginning to see NFTs intersect with trends in Decentralized Finance “DeFi”.
The growth of NFTs is just beginning, because NFTs represent the digitization and financialization of digital property and intellectual property. Trillions of creative works swirl around the Internet and are difficult to monetize, except through licensing models. NFTs hold out the hope of bringing back to the Internet an ownership economy. Creators can create, sell, and fractionalize ownership in their works, opening up a new chapter for creative endeavor. NFTs can be:
- Combined into token sets;
- Used as collateral for lending and stablecoin protocols; and
- Dynamic and interactive, incorporating outside data feeds.
Over the longer arc, NFTs hold out the hope of becoming increasingly financialized, interacting with other core blockchain-based financial primitives. They may prove to be a core primitive for decentralized identity solutions, and may increasingly serve as a cornerstone for monetizing emerging metaverses and other gaming platforms.
Flamingo aims to develop a strong foothold in this emerging ecosystem, bringing together the “hive mind” of a DAO to the world of NFTs. Flamingo will give its Members the ability to develop and deploy NFT-focused investment strategies. Purchasing NFTs with Ether or some other base digital assets. Once purchased, Flamingo could evolve in a number of different directions. Members will have the right and ability to factionalize its NFT holdings. Any purchased NFTs can be lent, held, displayed in a digital art gallery, or used as collateral in other DeFi platforms. The direction is up to the Members.
Flamingo is organized as a Delaware limited liability company. The rights and obligations of Flamingo Members are set forth in an operating agreement (which will be provided when you are verified to contribute to Flamingo) and are supplemented by the Delaware Limited Liability Company Act. Participants should retain their own counsel for purposes of evaluating whether to join flamingo as a member.
At its core, Flamingo will be member-managed and rely on DApp and related smart contracts to facilitate the purchase of NFTs. Moreover, Flamingo’s operating agreement expressly limits the Members’ liability and limits any fiduciary obligations amongst Members, in each case, to the extent permitted by applicable law. Additionally, Flamingo relies on a service provide (initially, OpenLaw) to facilitate various administrative functions on behalf of the Members, including preparing and sending annual K-1 tax forms, updating and maintaining the DApp, validating information related to projects selected for purchase, and handling other interactions that may come up during the lifetime of Flamingo. For these services, the service provider will receive a fee, pursuant to a schedule. As a result, Flamingo’s operating agreement was prepared by OpenLaw’s outside counsel.
As set forth in the operating agreement, and except as otherwise provided under Delaware law, no Member (or former Member) of Flamingo will be liable for the obligations of Flamingo for any amounts in excess of the amount of Member’s contributions to Flamingo, plus:
- The Member’s share of the undistributed profits of Flamingo, if any; and
- Any amounts distributed by Flamingo to such Member.
To the fullest extent permitted by applicable law, Members shall not have any fiduciary duty to Flamingo or any other Member. Under the operating agreement, Members agree to interact in good faith and to engage in fair dealing.
FLAMINGO OPERATING AGREEMENTS
The terms and provisions of the operating agreement may be amended if 50% or more of Flamingo Members or their delegates (as measured by the Member’s units) vote to approve an amendment. Voting will be based on the number of Flamingo Units held by the Members at the time of the vote.
Each Member of Flamingo must rely on the Member’s own tax and legal representatives as to the tax consequences of joining Flamingo or making purchases through Flamingo.
Membership in Flamingo is currently limited to accredited investors, as defined under U.S. law. The total number of members will be capped at a maximum of 100 members. Members have the opportunity to contribute Ether to Flamingo by purchasing between 100,000 and 900,000 units representing an ownership in Flamingo “Flamingo Units”.
Units will be sold in blocks of 100,000. Each block of Flamingo Units will be sold for 60ETH and provide a member with 1% of the voting rights in FLamingo, along with 1% pro rata rights to any proceeds from purchases. Each Member will be permitted to purchase 9% of the Flamingo Units. The LAO will be allocated 200,000 Units of Flamingo for its role in helping to formulate Flamingo. Moreover, the members reserve the right to create a Flamingo Token to represent Flamingo Units via a Member vote.
FLAMINGO UNITS SECURITIES
Flamingo Units have not been approved or disapproved by the U.S. Securities and Exchange Commission, any state securities commission in the United States, or any other global regulatory authority. However, All contributions are currently only limited to Ether, unless the Members agree otherwise.
As noted above, the U.S. Securities and Exchange Commission and/or equivalent government bodies in other jurisdictions have not determined whether membership interests in Flamingo (represented as units) are securities. In the abundance of caution, the limits in membership and accreditation status for U.S. contributors are put in place to:
- Comply with U.S. securities law;
- Prevent any one party from controlling a disproportionate amount of Flamingo; and
- Limit the risk of look through issues for Flamingo Members that are organized as funds or other legal entities.
To contribute Ether to Flamingo, Members will need to go through accredited investor, anti-money laundering “AML”, Know Your Customer “KYC”, and Office of Foreign Assets Control “OFAC” checks as defined under U.S. law and as discussed further below. A joining Member will need to deposit a sufficient amount of Ether from the Member’s Ethereum address in order to complete the membership process.
A Member will also need to submit sufficient information to verify the potential member’s identity for AML, KYC, and OFAC checks, including:
- Uploading a passport or a state issued licence;
- Providing a social security number or Tax ID; and
- Providing proof of the member’s primary residence.
Accredited investors include:
- Individuals who have an annual income exceeding $200K or a married couple that has joint income exceeding $300K in the two most recent years and have a reasonable expectation of reaching the same income level this year.
- Individuals who have a net worth that exceeds $1 million.
With respect to legal entities:
- Funds and trusts, with total assets in excess of $5 million, which were formed specifically to purchase the subject securities, whose purchase is directed by someone who has sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
- Any entity in which all of the equity owners are accredited investors.
Once a Member makes a contribution, Flamingo's underlying smart contracts will need to whitelist the Member's applicable Ethereum address. The process for validating and whitelisting the Member's Ethereum address will be done in order of contribution and will take at least 7 total days to complete. The process takes 4 days to process the proposal and another 3 days to provide Members the right to "rage quit" if they so choose.
During Member onboarding, Members will be asked to provide applicable documentation in order for Flamingo to verify your status as an accredited investor. This may include:
- Documentation verifying participant income or net worth;
- Written confirmation from a registered broker-dealer or investment advisor, licensed attorney, or certified public accountant as to the Member’s accreditation status; and
- Various forms, including a Form W-2, Form 1099, bank or brokerage statements, other statements of securities holdings, and other applicable documentation to ensure that you meet the definition of an accredited investor.
If a participant is acting on behalf of a legal entity, the participant may need to provide:
- Verification of that entity’s assets; and
- Verification of participant sophistication.
Voting rights will be based on the total number of Flamingo Units that each Member holds for any relevant vote posed to Members. Members will be prompted to vote via Flamingo DApp at various points during the lifecycle of Flamingo, including to evaluate purchase decisions, and/or other strategic decisions related to Flamingo. Voting will be facilitated by blockchain-based smart contracts and via the DApp based on ownership records maintained on the Ethereum blockchain.
VOTING RIGHTS AND PURCHASES
Members are not required to vote on all matters. At any point in time, a Member can transfer or "delegate" the member's right to vote on purchase decisions by designating via the DApp an Ethereum address for which such right is delegated to. Decisions to delegate any voting rights are entirely up to each Member. Moreover, a Member can cancel and/or re-delegate its voting rights through the DApp at any time.
Flamingo is entirely member-directed and managed by the Members through democratic voting. Members should have some experience in evaluating or purchasing digital assets. To preserve privacy and to prevent front running, and unless otherwise agreed, Members will periodically agree to allocate a portion of Flamingo's assets into a side-pocket (i.e., 20% of Flamingo's assets) initially maintained by Flamingo's Service Provider with the aim of having it managed in-part by the members. Once set aside, Members can propose to other Members the purchase of one or more NFTs. If a proposal passes (as outlined below), the Members themselves or the Service Provider will take steps to acquire the assets at issue.
The process of side-pocketing assets will occur through a Moloch-style vote (i.e., an on-chain vote). Each decision to side-pocket collected assets will have a 4 day voting period, with a 3-day period for Members to “rage quit.” If during the 4-day period, there are more yes votes than no votes, the assets will be set aside. If there are more “no” votes than “yes” votes, the side-pocketing will not pass. Individual acquisition decisions will occur via the dApp and will not require the expenditure of gas. Each Member will have the opportunity to outline and nominate an NFT or NFT-related project or opportunity to other Members. Once nominated, Members or a Member's delegate will have the right to vote on whether to support the proposal.
The Members have complete agency in making decisions on what NFTs should be collected, purchased, held or acquired. To preserve privacy, Members likely will create pools of funds that can be used to make purchasing, collecting, or other acquisition decisions. Flamingo’s Members then can vote on whatever NFT they would like to purchase, and if the vote passes, the service provider or a Member can purchase on behalf of Flamingo.
Members are free to contact artists, collectors, game-designers, metaverse creators, or other third parties to gain insight on trends, styles, and other prevalent information when making decisions on what Flamingo should purchase. For communication between Members and these third parties, Flamingo will maintain a Discord, Telegram, or other relevant communication channels. If requested by the Members, Flamingo's service provider can schedule meetings or facilitate other interactions with any creators or artists for NFTs being contemplated for acquisition. The Members will also have Curators to seek help and advice on style, quality, trends, and/or commentary on specific NFTs. Also, Members have the right to control all operations of Flamingo and any changes are expected to be implemented by the service provider.
Flamingo has certain strong rights for members to withdraw their capital if they are unhappy with the performance or administration of Flamingo. This right—often called "rage quitting"—gives members a degree of control as to their participation in Flamingo and the use of any contributed capital. Even though Flamingo is member-directed and managed, Members are not obligated to participate in any proposed purchase. Once a purchase is authorized via the dApp, all members will have the right to opt-out of the purchase and receive any undeployed capital that they contributed to Flamingo back (i.e., "rage quit"). Moreover, the right to rage quit is accounted for in the operating agreement and facilitated via the DApp and underlying smart contracts.
A member can rage quit Flamingo at any time, including after any NFT purchase. The only restriction is that any proposal that the particular member voted "YES" for is processed by Flamingo's smart contract initially. If a member rage quits, the member's pro rata portion of any unallocated capital contribution will be returned to the member. The member's Flamingo Units are retired (i.e., "burned") and the member loses any right to participate in future purchase. If a member wants to sell their interest in Flamingo, it is permissible, but subject to approval by other members.
Once a proposal is submitted for a specific NFT, the proposal will be submitted to the Flamingo Members to decide whether to nominate the NFT for purchase. If a purchase proposal is nominated, the Flamingo Members will then vote on whether to acquire the NFT or NFTs at issue. If approved via the DApp, either the Service Provider or a Member will purchase the relevant NFT on behalf of the Members of Flamingo. Purchases may be held by Flamingo or allocated fractionally in the form of tokens to each Member based on the number of Flamingo Units each Member holds. These purchases are up to the membership of Flamingo, NFTs can be purchased at various digital marketplaces (SuperRare, OpenSea, etc), and individual owners.
Flamingo primarily will make direct purchases of NFTs, however should the Flamingo Members want to invest directly into a software company or platform, there is nothing in the operating document that limits these types of strategies. For Flamingo, the ambition is to create a fund for NFTs in the Ethereum ecosystem. Flamingo's Members will set forth a purchase plan for the type of NFTs that they wish to finance in Flamingo. Feel free to submit a proposal for anything in that realm.
Winding Down Flamingo
Members of Flamingo can vote by majority to wind down Flamingo. Other circumstances include a judicially ordered dissolution or disposition of all the assets of Flamingo.If dissolution were to occur, a person appointed by the Members via a majority vote will handle the wind down of Flamingo based on the terms of the operating agreement.
At the time of dissolution, Members of Flamingo are responsible for the expenses associated with the liquidation. Any additional losses or liabilities incurred will be in accordance with the terms of the operating agreement and the service provider reserves the right to set aside funds to facilitate dissolution activities. Additionally, in the operating agreement, Members agree to tag and drag along provisions to deal with the possibility that members may want to transfer all of Flamingo’s assets to another entity or party. These rights will only be triggered if a super-majority of the Members vote to effectuate such a transfer.
Flamingo uses various smart contracts such as MolochDAO's v2 smart contracts to administer its activity. Primarily, the smart contracts are used to facilitate:
- Collecting members’ initial contributions to Flamingo;
- Delegating voting to third parties;
- Funding investments;
- Distribution proceeds; and
- Rage quitting.
OpenLaw, the initial service provider for Flamingo, has worked with the MolochDAO to develop v2 of the MolochDAO smart contracts. Furthermore, Flamingo smart contracts have been audited by ConsenSys Diligence, MolochDAO, and MetaCartel
Aaron Wright - co-founder of OpenLAW, and a professor at Cardozo Law School.
Twitter Account: https://twitter.com/awrigh01
Priyanka Desai - Currently leading operations for OpenLaw, the project behind Flamingo and The LAO.
Twitter Account: https://twitter.com/pridesai
Medium : https://medium.com/@FLAMINGODAO