The LAO is a project piloted by OpenLaw to create a new wave of DAOs in the form of limited-liability autonomous organizations. With the LAO, accredited investors can invest in the fund along with others and, as an organization, reach consensus on investments the fund will make for profit.
One of the most promising applications of Ethereum is the decentralized (autonomous) organization, also known as a DAO. In 2016, the Ethereum community saw the first great experiment with DAOs with the launch of "The DAO." The DAO raised over $150 million dollars, but it ultimately failed due to legal and technical challenges.
The LAO was organized in the spirit of The DAO, as a member-directed venture capital fund organized in the United States, with an aim to be compliant with U.S. law. Like The DAO, The LAO allows Members to pool capital, invest in projects, and share in any proceeds from the investment.
The LAO is organized as a legal entity (a Delaware limited liability company) primarily administered via an online application (a "DApp") and related smart contracts.
Launched in late April 2020, the LAO has backed over 30 projects across the Ethereum and blockchain ecosystem. Unless modified by the members, funding will be provided to projects in the form of the cryptocurrency Ether under terms outlined in these FAQs.
More details about The LAO's legal structure, operation, and funding process are outlined in these FAQs. Please read them carefully before becoming a member of The LAO or seeking funding from The LAO.
HOW TO JOIN
Membership in The LAO is currently limited to accredited investors, as defined under U.S. law. The total number of members will be capped at a maximum of 99 members.
Members have the opportunity to contribute Ether to The LAO by purchasing units representing an ownership in The LAO ("LAO Units"). The members reserve the right to create a LAO Token to represent LAO Units via a Member votes.
Units are sold in blocks. Each block of LAO Units (or 100,000 units) is currently being sold for 310 ETH and provide a member with 0.9% of the voting rights in The LAO, along with 0.9% pro rata rights to any proceeds from investments. The per unit number to buy units into The LAO will increase incrementally after every investment The LAO makes.
Each member is be permitted to purchase up to nine blocks of LAO Units (or 7.2% in total).
The sale will be denominated in Ether. Ether to US dollar calculations will be provided via a real time oracle feed from Chainlink.