Cancelled

JBP-269: CogniDAO v1 - A new way to handle subscriptions at juicebox.money

Author

Anon

Cycle

32

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Author: gulan
Date: 2022-09-25

Synopsis

State what the proposal does in one sentence.

  1. Move recurring subscription payments currently handled by individuals to a single legal entity.
  2. Create a legal, integrated, and scalable system for all Juicebox projects via CogniDAO and Nance to pay for off chain products/services

Motivation

What problem does this solve? Why now?

Juicebox users use a variety of services on a recurring basis. Gulan is aware of three methods that users related to the DAO use to pay for these services:

  1. Juicebox DAO pays vendor directly through multisig or Juicebox treasury.
  2. User pays for service and then gets reimbursed for costs directly
  3. User pays for service and eats the cost as part of their payout.

The goal of this proposal is to eliminate methods 2 & 3 and to provide the DAO and it’s users a single payment solution for off chain payments. This project aim’s to use Juicebox and Peel as trail customers, develop both the business and legal model, and spin off this services as a self sustaining project for Juicebox projects to pay products/services off chain.

Current known subscriptions

Juicebox

  1. notion
  2. discord
  3. figma
  4. gitbook
  5. ghost

Peel

  1. infura
  2. vercel
  3. pinata
  4. fathom

WORK DONE TO THIS POINT

To that aim, Gulan has created a new legal entity incorporated in the state of Delaware and has created banking, with the ability to create unlimited virtual cards for users/projects, and a crypto on-ramp/off-ramp for reimbursements. Additionally, gulan has provided $1,442.19, via a Juicebox v2 project ‘’cogniDAO”, in liquidity to handle payments for 2 services (notion and figma) from Jango as a test.

Virtual Cards

2 virtual cards have been created

  1. Juicebox subs (activated)

  2. Peel subs (activated but not in use)

URLs have been purchased:

cogniDAO.money

cogni.money

The current legal framework is fluid, and there could be other methods to handle this routing. The current setup is a proof of concept and will be expanded and solidified in further updates.

Specification

How exactly will this be executed? Be specific and leave no ambiguity.

  1. Authorize Movement of transactions

    a) This proposal authorizes CogniDAO and its legal entity to pay for the following subscriptions:

     Juicebox

 1. notion
 2. discord
 3. figma
 4. gitbook
 5. ghost

 Peel

 1. infura
 2. vercel
 3. pinata
 4. fathom

    b) it is up to the current individual payer of the subscriptions to transfer the accounts to CogniDAO for payment. The individual payers, or peel, can reject any of these transfers of the subscriptions for any reason.

  2. Fund creation of legal agreement

    Work with tankbottoms and @filipv.eth on the appropriate legal structure and agreements.

    1. JBP-157 authorized 2 x $20,000 payments to dao.lawfirm.eth

    2. Only 1 of the $20,000 payments was executed

    3A) If JBP-157 authors @filipv.eth and tankbottoms.eth agrees, repurposed the second $20,000 payout to fund a consultation, the creation of a terms of use agreement that solidifies the legal framework of the project/proposal, and the creation of AML and KYC procedures.

    3B) if JBP-157 authors @filipv.eth or tankbottoms.eth does not agree, transfer $20,000 to CogniDAO Juicebox v2 Project ‘ID 187’ to fund a consultation and the creation of a terms of use agreement that solidifies the legal framework of the project/proposal, and the creation of AML and KYC procedures.

  3. Provide liquidity

    Transfer $20,000 USD to CogniDAO Juicebox v2 Project ‘ID 187’ for liquidity

    This should revoke all previous subscription reimbursement methods, particularly authorized by JBP-236, however that is subject to change by this specification section 1 per individual vendors.

  4. Move Gulan payout/responsibilities to CogniDAO

    a) Revoke Gulan’s recurring payout from ‘JBP-238’

    b) Increase payout from $2000 to Gulan → $4000 per FC to CogniDAO

    c) Create a recurring payout for Gulan to be sent to CogniDAO Juicebox v2 Project ‘ID 187’

    d) CogniDAO recurring payout will start on FC#32 and end FC#38

  1. Authorize @jigglyjams to work on this project where able and willing.

  2. Any unused funds will be return to the most recent version of the Juicebox main treasury.

  3. Authorize reimbursement for all subscriptions authorized in specification section 1 to CogniDAO as spent

CogniDAO V1 operations specification.

  1. Vendor

    A) CogniDAO account will be added to services as an admin

    B) CogniDAO will add virtual card and billing information

  2. CogniDAO

    A) CogniDAO will pay for services using upfront liquidity provided by the project

    (in the case of peel and Juicebox, Gulan has provided some upfront liquidity with the belief that the DAO will authorize reimbursements beyond what is has been authorized in JBP-236

  3. Crypto off ramp

    A) CogniDAO Juicebox project will send all reimbursement funds to Crypto→fiat off ramp

  4. Banking

    A) funds from the Crypto → fiat off ramp will arrive in a liquidity account

  5. Virtual Card

    A) projects will have independent virtual cards that will be used for payments and tracking

  6. Nance

    A) Nance can ping the banking api/virtual cards to get real time usage of transactions

    B) Nance can then add those payouts to config on a funding cycle basis

Rationale

Why is this specification appropriate?

There are many services that are attempting to offer debit cards to the DAO. Those projects though are catering to the larger web3 space and do not have the particulars of Juicebox and their projects in mind. This project is a catered approach to provide these same services, while integrating at the base stack wherever possible. If Juicebox were to use an outside vendor, we would not be able to ensure the stability and scalability of a solution to all Juicebox projects.

Juicebox as a legal entity is not fully fleshed out. The creation of a new legal entity is required for both flexibility and immediate action.

This project aims to create CogniDAO as a self sustaining entity that will offer its services to future projects/DAO’s to use.

Risks

What might go wrong?

There are many, many, ways this can go wrong, but this proposal recognizes that and fully believes that this is a v1 step in the right direction.

  1. The current legal framework is improper

  2. The current legal framework does not have the best case tax implications

  3. The proposal may create untenable relationships at scale that need to be addressed from the get go rather than an incremental approach

  4. Gulan is currently the only party on the project and could be a single point failure

  5. Gulan may be taking an unprecedented amount of risk by putting their legal name on these transactions and hoping for the best

  6. During the legal discovery phase we could discover that the entire framework of this project is legally impossible or too risky and will be a waste of all authorized funds

  7. This proposal packs in a lot of separate ideas that could be better formed in separate proposals

Timeline

When exactly should this proposal take effect? When exactly should this proposal end?

In the best case scenario, this will be an ongoing project with the aim to be self sustaining and will exist as long as juicebox.money exists. In the worst case, Gulan should receive legal advice and promptly end the project as soon as possible.