Built By DAO operates within legal frameworks while maintaining decentralized governance. This page outlines our compliance approach and member responsibilities.
⚖️ Compliance Overview
📜 Legal Structure
🔐 KYC/AML
📊 Reporting
🌍 Jurisdictions
Wyoming DAO LLC
Required for investors
Quarterly
US-focused, global participation
🎯 Principle: Compliance enables, not restricts, the DAO's mission
🔒 Protection: Proper structure protects members and the organization
📜 Legal Structure
Built By DAO operates as a legally recognized entity to provide member protections.
🏛️ Entity Type
Property
Value
Type
Wyoming DAO LLC
Jurisdiction
Wyoming, USA
Formation
Under Wyoming DAO Supplement (W.S. 17-31)
Governance
Smart contract + operating agreement
🤔 Why a Legal Entity?
Benefit
Description
🛡️ Limited Liability
Members protected from personal liability
📋 Contract Ability
Can sign leases, hire contractors
🏦 Banking Access
Can hold traditional bank accounts
🏠 Property Ownership
Can own real estate directly
⚖️ Legal Standing
Can sue and be sued as entity
📋 Operating Agreement
The operating agreement defines:
Section
Content
🗳️ Governance
Smart contract as primary governance
👥 Membership
NFT-based membership recognition
💰 Economics
Token relationships and distributions
📊 Reporting
Required disclosures and filings
🔄 Amendments
How operating agreement can change
🔗 Smart Contract Integration
Element
On-Chain
Legal Backup
Membership
✅ NFT-based
Operating agreement
Voting
✅ On-chain
Legally binding
Treasury
✅ Multisig
Bank account backup
Proposals
✅ Smart contract
Written record
🔐 KYC/AML Requirements
Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements apply to certain activities.
📊 When KYC Required
Activity
KYC Required?
Level
Basic membership
❌ No
—
Earning EQTBLT
❌ No
—
Voting
❌ No
—
Investor NFT purchase
✅ Yes
Full KYC
Large BLTBY purchases
✅ Yes
Full KYC
Treasury withdrawals
✅ Yes
Verified member
📋 KYC Levels
Level
Requirements
Enables
Basic
Email, wallet
Membership, earning
Verified
ID verification
Proposal submission
Full KYC
ID + address + source of funds
Investment, large transactions
Accredited
Full KYC + accreditation proof
Trust tier investment
🔒 Data Handling
Aspect
Policy
Storage
Encrypted, off-chain
Access
Compliance team only
Retention
As required by law
Sharing
Only with legal requirement
Deletion
Upon valid request (with legal limits)
🌍 Jurisdiction Considerations
Region
Status
🇺🇸 USA
Primary jurisdiction, full compliance
🇪🇺 EU
GDPR compliance for EU members
🌍 Other
Country-specific restrictions may apply
📊 Reporting & Disclosures
Built By DAO maintains transparency through regular reporting.
📅 Regular Reports
Report
Frequency
Content
📊 Treasury Report
Monthly
Balances, inflows, outflows
🏠 Property Report
Quarterly
Properties, occupancy, maintenance
👥 Membership Report
Quarterly
Member counts, rank distribution
💰 Financial Statement
Annual
Full financial disclosure
🗳️ Governance Report
Quarterly
Proposals, votes, Council activity
📋 Required Filings
Filing
Jurisdiction
Frequency
Annual report
Wyoming
Annual
Tax filings
IRS
Annual
State registrations
Operating states
Annual
Securities filings
SEC (if applicable)
As required
🔍 Audit & Review
Review Type
Frequency
Scope
📊 Financial audit
Annual
Treasury, transactions
🔐 Smart contract audit
Per major update
Security review
⚖️ Compliance review
Annual
Legal requirements
🏠 Property inspection
Annual
Physical assets
📢 Public Disclosures
Information
Availability
Treasury balance
Real-time on-chain
Proposal results
Public on-chain
Member counts
Public dashboard
Property portfolio
Public documentation
👤 Member Compliance Duties
Members have certain compliance responsibilities.
✅ Member Responsibilities
Duty
Description
📋 Accurate Information
Provide truthful information
🔄 Updates
Keep contact information current
🚫 Prohibited Activities
Don't use DAO for illegal purposes
📊 Tax Compliance
Report earnings appropriately
🗳️ Good Faith
Participate honestly in governance
🚫 Prohibited Activities
Activity
Consequence
Money laundering
Immediate removal, legal referral
Fraud
Immediate removal, legal referral
Market manipulation
Removal, possible legal action
Sanctions violations
Immediate removal, legal referral
Identity fraud
Immediate removal
💰 Tax Considerations
Activity
Tax Implications
EQTBLT earnings
May be taxable income
BLTBY transactions
Capital gains may apply
NFT sales
May be taxable events
Rent payments
Consult tax professional
⚠️ This is not tax advice. Consult a qualified tax professional.
📋 Reporting Suspicious Activity
Step
Action
1️⃣
Document concern with details
2️⃣
Report through compliance channel
3️⃣
Maintain confidentiality
4️⃣
Cooperate with investigation
🏠 Property Compliance
Real estate operations require specific compliance measures.