Your partner
in DAO success
Lemma
Definition
A helping theorem in mathematics; a generally minor, proven proposition used as a building block to larger results
We understand the challenges and opportunities of the blockchain era
If we handle all of the administrative details
then you can focus on your mission
With over forty years of professional services experience behind our team across international directorships, “Big Four” accounting firms, digital assets businesses and decentralized organizations, Lemma brings industry-leading quality and professionalism to your community. Trusted by some of the largest DAOs in the world, Lemma works with our clients from Day Zero to ensure your team has absolutely every resource available to succeed – regardless of where in the decentralization process you are. At Lemma, we believe no one should organize alone.
There is no question too big or small that our team would not be thrilled to help answer! To start, these few seem to come up all the time:
For many DAOs, the regulatory and financial landscape of the Cayman Islands make it an incredibly attractive jurisdiction to incorporate the Foundation entity. Alongside this, the concept of Economic Substance becomes important – that activities performed by the registered foundation are being initiated, serviced, and/or completed within the Cayman Islands themselves to validate that the Foundation is conducting tangible economic activity within the jurisdiction and is not simply a “paper company”. In certain international jurisdictions, this fact becomes critical in determining tax and legal status of entities without a clear country of operation, which becomes much more significant for companies with employees that are as jurisdictionally diverse as DAOs tend to be. Lemma conducts all our management operations from our location in the Cayman Islands, providing you with further operational clarity to support regulatory and economic substance within our registered jurisdiction.
Often DAOs rely heavily on their Foundation Companies to execute on the proposals and initiatives being passed across the organization. This presents a point of centralization alongside a host of potential problems:
- For many projects, forming a DAO is a once-in-a-lifetime event; the process can be unclear, with no industry standard on how to decentralized and even few people having done that for the first time. Lemma has worked with some of the largest DAOs in the world, from conception through launch and into ongoing operations – we have the experience and battle-born knowledge to help your DAO succeed while avoiding the mistakes we have seen first-hand and helping your community thrive from Day One.
- Foundation Companies and DAOs often delegate important tasks to one or two individuals within the community, which makes sense operationally but presents concerns should that individual step away from the organization unannounced, or worse – decide to hold organizational accounts they were given access to for ransom. Partnering with Lemma eliminates this concern; we are a fully devoted team of professional service providers with over 40 years experience catering to some of the most meticulous companies in the world, with coverage across multiple time zones and jurisdictions to ensure your accounts are always available and your community is always heard.
- When the Foundation Company and the DAO become too entwined, legal questions regarding management and autonomy become paramount. The past years have shown us (with examples like bZx DAO) that too much centralized responsibility within an affiliated company represents serious legal risk. DAOs can mitigate this risk by partnering with service providers like Lemma, who can perform key functions of your DAO as an entirely independent service provider operating in your registered jurisdiction.
- Once the thrill of launch wears off, many Foundations find the operational aspects required to fulfil the DAO’s wishes become distracting against the Foundation’s intended core function – adding value to the DAO through progressive action and ongoing ecosystem development. Engaging Lemma allows foundations to place focus back on adding value within their community, while also providing industry-leading operational guidance shown to drastically improve DAO engagement, streamline efficiency, and reduce operational backlogs while providing greater transparency within your community.
A Decentralized Autonomous Organization (DAO) is an organizational structure replacing reliance on central bodies of authority with trustless technological solutions allowing for unfettered governance with participation across entire communities. Through the use of smart contracts to automate governance procedures and distribute control amongst members of diverse communities across the globe, DAOs represent the future of digital governance. Alongside community governance, DAOs are often seen implemented across a variety of purposes, including investment management, social impact initiatives, and community development.