Global Voted BitShares Legal Representative
Name/bfid 202001-bitshares-legal-representative
Category Legal
Freelancer The BitShares Blockchain Foundation - The BitShares Blockchain Foundation
Total 24.000 EUR
Duration 2020/01/01 - 2020/12/31 (12 months)
Worker ID 1.14.243 (click the id to vote with Beet or go to reference UI)
Discussions
Accounting & Reporting workers.bitshares.foundation/202001-bitshares-legal-representative

Preface

In 2019 the community was offered two choices for the legal representative work: merely a mandate for passive representation, or paid per month to allow proactive actions as well. This seemed reasonable at that time, it is not reasonable now. Even the passive roles needed a lot of time and effort. Thus, this worker asks for a monthly fee.

Among the tasks of the legal representative is to deal with listing agreements, defend against delisting from existing exchanges. We seek to extend our position as legal representative in case the community wants us to do so.

All existing legal agreements must be considered void if the BitShares Blockchain Foundation is no longer the legal representative for the BitShares Blockchain, with all consequences that come with it (effective date 31st January 2020).

Introduction

The strength of BitShares Blockchain is its technical superiority and distributed governance. However, due to the nature of its decentralized and [autonomous] character, some aspects are not continuously attended in comparison to most other blockchain platforms. One of those aspects is dealing with legal issues and regulations. For example in 2018, the BitShares Blockchain Foundation (BBF) engaged with PaulHastings LLP for the Legal Opinion Letter about the legal status of the core native token BTS, dealt with Bittrex Inc., Huobi and other exchange listings, and organized BitFest. Legal issues like this are not static in our space, and require ongoing maintenance. The legal opinion letter about BTS obtained early 2018 would require updating today because new regulatory guidance has been provided by various regulatory agencies worldwide. To make things like this possible, somebody or an entity needs to carry the authority (mandate) to sign on behalf of the community. Keep in mind that such an entity or person can only represent the BTS holders and BitShares community with an approved mandate.

Proposal

We here propose to appoint the BitShares Blockchain Foundation (BBF), to engage in external communication as the only legal representative with authorities, market parties and legal counsel. With the mandate as the Legal Representative, the BBF will be the single point of contact for legal (authority) matters, as well as (temporary) contractual obligations to fulfil other worker proposals. We seek to extend our position as legal representative in case the community wants us to do so. The BBF will coordinate and distribute legal work and act as legal representative on behalf of the BTS token holders. If needed, the BBF may sign on behalf of the Community taking advice from approved members of the BitShares Committee.

Among the tasks are dealing with listing agreements, defend against delisting from existing exchanges and other parties requesting the legal opinion letter or legal questions on BitAssets for all kinds of purposes (e.g. Huobi, LATOKEN, Lykke, Binance and Bittrex), or also among the tasks is acting as a legal entity for licensing (e.g. licensing for Apple Connect for the mobile worker).

Acting as a representative, we feel obligated to always represent BitShares Blockchain publicly in the best interest of its token holders. Since legal agreements are binding in the real world, while worker proposals can be revoked quickly, we here propose a mandate for a 12 month duration. The daily BTS payout will be set to collect the necessary funds quickly to secure the funding. The mandate is considered given when the monthly fee is paid, and revoked if the monthly fee can’t be paid in full anymore.

It is essential that the BBF will continue to have the legal mandate, otherwise existing contracts become void. Invalidation of existing contracts may result in BTS being delisted from exchanges.

In short, this worker proposal comes with two options:

  • No approval: The BBF will not obtain the extension of its mandate and will have to withdraw from all existing legal agreements
  • Approval given, worker active: The mandate is granted and considered funded as long as the monthly fee can be paid

Furthermore, authorities and businesses require a point of contact with legal mandate. Otherwise, the community may face (uninformed) decisions made by third parties due to lack of communication with a community representative with legal mandate.

Remark

  • There can be only one legal representative for the BitShares Blockchain as authorities have a need for one channel.
  • The deadline to approve the BBF as the legal representative (aka the worker becomes active) is the 31st of January 2020. The mandate as Legal Representative comes with responsibilities and liabilities. In the case that no mandate will be granted until the deadline, the BBF has to actively withdraw from any agreements made and inform all counterparties. That step is irreversible and also can’t be undone if the worker would become active at a later time again.

Mission

Our mission is to

  • Represent the BTS holders in its best interest in legal matters as the legal representative.
  • Be the legal point of contact for BitShares Blockchain for authorities.

What to expect from us

  • Handling legal matters for BitShares Blockchain.
  • Engaging in external communication with authorities, market parties and legal counsel on behalf of the BitShares Community.
  • Public announcements and press releases on legal in BitShares Blockchain.

Fee

Everyone’s time is valuable. As such, we are asking for funding though the BitShares Blockchain Reserves and seek a fixed monthly fee of 2000 EUR for the next 12 months, payable from January 1st 2020 until December 31st 2020. Invoices will be provided publicly through the accounting website. The fee only covers the hours spent by the entire team to subjects related only to this mandate. Travel expenses or fees of 3rd parties (i.e. lawyers, notaries, etc) are not included, and need to be funded separately. The payment of this fee will happen preferably in bitEUR, but may also happen in any alternative BitAsset, BTS directly, or in BTC depending on market conditions. The value indicated here and on later invoices represent FIAT values, and will be paid in equivalent value of the chosen crypto-currency. This worker carries no escrow fee.

The daily BTS payout is set to 14.723 BTS, which contains a devaluation multiplier of 3. In theory, if the price remains the same and the worker is voted active, it will take 4 months to collect the budget for the whole year.

Team

The legal setting and involved entities can be found on the website

https://www.bitshares.foundation/imprint

Individuals involved are:

  • Annemieke Dirkes, CEO and founder Blockchain BV, Blockchain Projects BV, Blockchain Development UG. In IT since 1987, in managerial roles since 1990. Expertise in general and business development with a strong focus on compliance and legal.
  • Dr.-Ing. Fabian Schuh, CEO and founder of ChainSquad GmbH and Blockchain Development UG, also known as xeroc. Will be assisting in all matters historical and technical to further the process of creating a clear and transparent picture of the BitShares Blockchain.

Complementary worker proposal

This proposal is complemented by the Global Voted Spokesperson / Business to Business Development worker. See here for an overview.

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