hi there! great questions!
- Who are MetaLex? Could you briefly explain why I should trust your legal expertise?
Here is an explainer of the team members and our bios across both the law firm side and tech side. I will elaborate a bit more on mine, since I’m the main advisor/drafter/etc. on this project:
I am a California-licensed attorney and have been practicing corporate/venture/securities law in the U.S. for 14 years. From 2010-2018, I was an associate successively at three ‘AmLaw 50’ firms Dewey & LeBoeuf, Weil Gotshal, and Hogan Lovells. At each of these firms, I was with the same team, widely considered to be perhaps the preeminent buyside mergers-and-acquisitions team in Silicon Valley at the time–our clients included Facebook, Oracle, Intel, eBay, Applied Materials, Adobe, Opera, Twilio, and more. I played a ‘senior associate’ role on most of those deals. Many of these deals were also public-to-public acquisitions and thus involved a significant securities law and governance component. From 2018 through now, after declining to join the partner track at Hogan Lovells, I have been focused on my own cryptolaw practice, which has also included a stint as GC of a Grid+ (a ConsenSys spoke) and three years as GC of Delphi Labs, the incubation arm of Delphi Digital, in addition to periods of running my own cryptolaw boutique practice, focused on regulatory advice and strategic transactions primarily for DeFi project teams.
My B.A. is from Brown University in Philosophy with a Capstone in Creative Writing and my J.D. is from the UCLA School of Law.
- Could you provide a description of the powers of the Emergency Supervisor role here on the forum? It seems to be a very important position.
Yes. This information appears in Article 2.6 of the Bylaws. I am pasting the most important language below as I think it’s reasonably clear by itself:
Also relevant, of course is the definition of “Adverse Event”, here:
- Please clarify the eligibility criteria for the BORG Personnel.
The eligibility criteria for BORG Personnel appear in Article 2.1 of the Bylaws. Since they are relatively self-explanatory I will paste the provisions in full below:
- Please cpecify which source should be relied on when discussing the purpose of the BORG, given the forum post mentions that one of the purposes is “owning and holding assets contributed by such Lido DAO Allies,” while the Bylaws state “to hold and use any Blockchain Tokens lawfully owned or held by the BORG in support of the Authorized Uses.”
The first language you cited refers specifically to the purposes of the “Alliance Multisigs” used by the BORG–its sole purpose is holding the Ally-contributed assets. The BORG will also have an Ops Multisig that is not authorized to hold Ally assets and thus its purposes would be broader–namely, the overall purposes of the BORG, which are set via the Bylaws provision pasted below:
Schedule 1.2.1 referred to in these purposes reads as follows:
The referenced Exhibit C is a copy-paste of the Alliance Proposal approved by Lido DAO.
Thus, to summarize, the overall purpose of the BORG is to pursue the Alliance program as approved by Lido DAO, but the ‘Alliance Multisigs’ have a narrower purpose of securing the Ally-contributed assets.
Questions 5-6 were more driven by decisions of other Lido contributors (including those who will serve on the BORG) so I am including their response to them:
5.Could you clarify the budget size being requested and why it’s for six months, considering there’s just over a quarter left in the year?
- The budget requested for this proposal is $125K for 2024 (Sept-December). It is not for six months. Here’s the estimated breakdown :
- contributor and director compensation, tooling and payments for any third party services (eg. corporate service provider) of around $90-100K for 4 months(including sept),
- in addition to that, there are one time expenses forecasted :- a)local law firm fees and other legal expenses(eg. policies for the entity), b) hiring a new Supervisor and c) reserve amount for any unforseen expenses until the next budget is approved. we estimate about $25-35K to cover for this.
- For completeness, if there are any funds carried over from 2024, they will be accounted for in the 2025 EGG budget request, where a new budget request will be made for the whole year.
6.Also, could you clarify the EasyTrack limit that’s proposed to be annual, and make sure it’s accurate before the on-chain vote?
- The annual budget for the BORG is expected to be ~$250K and this will be set as the upper limit in the Ops multisig configuration. It was advised(by contributors) to set it up this way to reduce operational and technical burden ie. having to change the upper limit many times through another onchain vote. The config is similar for ATC and PML. The BORG will only draw the approved $125K for 2024 and the DAO has the opportunity to veto every ET drawdown request for security. Furthermore, the guardians (who are DAO contributors) can ensure accountability for this requested amount as well.
- The drawdown frequency from the DAO treasury is set to 3months in the configuration ie. every quarter. The plan is to draw smaller amounts more frequently(ie. every quarter) only to cover actual needs of the BORG. It’s not advised to draw the entire budget in one ET request for security reasons. Note : The sum of all drawn amounts will always be equal to or below the approved budget.
Thank you very much for the thoughtful questions. I would be happy to answer any followup questions you may still have.
