The DeFi Spell: Abracadabra DAO Contemplates Centralized Law
A centralized legal structure is proposed by the community behind DeFi internet magic token money and Spell.According to the manifesto, to protect intellectual property rights and to manage the server expense there was a need of a centralized legal entity, which is still governed by the spell token holders.
A proposal is unveiled by the Abracadabra DAO, the governing body behind Magic Internet Money and Spell, for a legal framework to link the centralized and decentralized world.
The proposal suggests nominating a trustee specialize in intellectual property rights to protect the DAO’s trademarks and control server expenses, with important decisions still directed by the Spell token holders, showed by the post on Abracadabra platform yesterday.
Presently, Abracadabra protocol depends on community members privately funding important services such as hosting and domains, post declared. Even so, this decentralized forum proposed to challenge in protecting intellectual property rights, as described by the forced shift of the DAO’s blog because of the baseless copyright claim, the post said.
The proposal was published yesterday so it’s just the first step, An Abracadabra DAO grantor known as Romy told Block in an email that I’m very delightful to see what community offering and where this will come along.
According to the CoinGecko data, Magic Internet Money is USD-pegged stable coin which is backed by the crypto assets with market cap of around $87 million. The market cap of Spell, which is the governance token of Abracadabra’s DeFi lending platform, is around $59 million.
DAO legal criterion
Such an act will dispute the original ideology of a decentralized independent organizations; however, the proposal still highlighted the importance of Abracadabra’s commitment to decentralization.
In spite of our dedication to decentralization, we have acknowledged the importance of introducing a specific degree of centralization, the post said. Our aim is not to disturb the decentralized nature of Abracadabra, but to safeguard it. Every important decision will continue to be in control of the Spell token holders as it always been.
According to the Romy, keep in mind the vote is not to centralize anything associated to Magic Internet Money or Abracadabra, but simply a point to represent DAO when it affiliates itself with the centralized entities like market maker, service providers, etc. therefore, there is no centralization of DAO neither of its operations nor treasury. It is just a point of contact DAO will use when it join with the centralized entities.
The U.S. Commodity Futures Trading Commission’s win in the Ooki DAO case prior month set a yardstick that DAOs can be held responsible, which is adding pressure to the need for legal frameworks, even if that donate at least level of decentralization. Sushi DAO acknowledged the implementation of a new corporate legal structure in October.
Multi-phase voting procedure
The proposed transition of power to the new entity, MIM, will be settled in multi-phase voting procedure involving Spell token holders. The first phase demand selecting the administration for the new entity, with Bermuda, Malta, Singapore, and Switzerland as preferred choices. Before the final vote, the second step is to define the role and operations of the new entity.
In accordance with CoinGecko, the Spell token has fallen to 3% afterwards the proposal was posted.
In November, Magic Internet Money for the time being lost its dollar consistency over fears a portion of its value was endorsed by FTT, the innate token of co collapsed FTX crypto exchange.
