Owner: CrownThrive, LLC Date: 2025-08-08 Classification: Internal — DAO Lifecycle Finalization Framework
1. Purpose & Scope
This document defines the policies, processes, and smart contract mechanisms for dissolving, merging, or transitioning the CHLOM Global DAO into another governance body. It is designed to ensure that any exit or merger is executed with full transparency, community consent, and technical precision while preserving member rights, assets, and historical records.
Goals:
- Establish a predictable and trustless pathway for DAO dissolution or merger.
- Ensure treasury, intellectual property, and governance records are secured and transitioned.
- Provide automated dispute resolution and asset distribution mechanisms.
- Maintain legal and regulatory compliance during closure or integration.
2. Trigger Conditions
- Proposal-Based Initiation — Any exit or merger must originate from an on-chain governance proposal.
- Supermajority Consensus — Requires a minimum of 75% quorum and 66% approval from all voting tokens.
- Fail-Safe Mechanisms — Triggered if the DAO becomes technically inoperable, financially insolvent, or legally prohibited.
3. Smart Contract Framework
- Exit Contracts — Automate treasury liquidation, asset distribution, and token burn.
- Merge Contracts — Enable seamless integration with a receiving DAO, including membership migration, treasury allocation, and governance role mapping.
- Escrow Logic — Holds transferred assets until merger conditions are cryptographically verified.
- Audit Trails — Immutable on-chain logs of all transactions and governance decisions.
4. Treasury & Asset Management
- Asset Liquidation Rules — Defines priority of payouts: debt obligations → locked rewards → token holder proportional distribution.
- Non-Fungible Asset Transfer — Transfers IP, licensing rights, and digital property through tokenized deeds.
- Compliance Hooks — Enforces jurisdictional tax and legal requirements before final payouts.
5. Member Rights & Protections
- Proportional Compensation — Members receive assets based on voting power and contribution metrics.
- Historical Record Preservation — All governance proposals, votes, and performance records stored in decentralized archives.
- Opt-Out Rights — Members can withdraw their portion of the treasury if they reject the merger terms.
6. Regulatory & Legal Considerations
- Jurisdictional Clearance — All exit or merger actions reviewed by DAO-appointed compliance oracles.
- KYC/AML Clearance — Required for treasury withdrawals above threshold limits.
- Global DAO Registry Update — Notification sent to all known DAO registry systems.
7. Finalization & Post-Event Management
- Exit Certificate — On-chain notarized proof of dissolution or merger completion.
- Community Debrief — Final governance meeting summarizing reasons, outcomes, and lessons learned.
- Legacy Network Creation — Optional archival DAO for historical discussions and brand preservation.
8. Optional Extensions
8.1 Advanced Tokenomics Modeling
- Dynamic Supply Controls — Token mint/burn algorithms adjusting based on DAO activity and treasury health.
- Incentive Layering — Multi-tier reward systems combining governance, staking, and contribution-based bonuses.
- Stability Mechanisms — Algorithmic reserve allocations to mitigate volatility.
8.2 Post-Exit Treasury Reinvestment Strategies
- Legacy Asset Fund — Invest a percentage of dissolved treasury into low-risk yield-bearing instruments to fund archival or legacy projects.
- Member Co-Investment Pools — Allow exiting members to collectively reinvest in successor projects.
- Impact Grants — Allocate part of treasury to aligned social or ecosystem-impact initiatives.
8.3 Cultural Preservation Guidelines
- Archival Protocols — Maintain decentralized storage of DAO media, proposals, and discussions.
- Brand Continuity Options — Guidelines for licensing DAO branding to successor entities.
- Community Memory Projects — Optional initiatives to preserve the DAO’s cultural footprint, including storytelling archives and historical documentaries.
Summary: These DAO Exit & Merge Protocols, along with optional advanced tokenomics, reinvestment strategies, and cultural preservation guidelines, ensure that CHLOM Global DAO’s closure or integration is executed with maximum foresight, community benefit, and legacy preservation.