Association
Document package: provides the Association with the ability to interact with traditional legal and financial systems for conducting activities at the international level, enabling confident shifting of the vector of societal development.
Regularly synchronized with the international legal environment.
Legal Framework
This framework establishes a comprehensive legal architecture containing the necessary provisions for lawful activity within the international legal field, providing sufficient freedom of action for all Association members, including governance members and authorized representatives.
Legal Foundation and Hierarchy
The Association’s legal system is built on a strict hierarchy ensuring predictability and the rule of law.
Legal Personality: The Association operates based on and in accordance with the principles set forth in Article 60 and following of the Swiss Civil Code.
Applicable Law: Activities are governed by substantive Swiss law (as primary) and Lex Cryptographica (protocol code) as subsidiary law.
Protective Mechanism: Any on-chain decision that violates the imperative provisions of Swiss law is null and void (legally invalid).
Document Hierarchy:
Governance Resolution: Supreme founding act. Approves the Mission, establishes Funds, and enacts all other documents.
Executive Act: Activates and limits the authority, term, and budget of a specific Authorized Representative (hereinafter “Representative”). Has priority over general Mandate provisions.
Protective Contracts (Mandate Agreement and Indemnity Agreement): Bilateral contracts defining fiduciary duties and legal protection of Representatives.
Policies and Regulations: Procedural documents regulating compliance, asset management, and dispute resolution.
Governance and Decision-Making
Governance is implemented through a bicameral (two-chamber) on-chain system ensuring balance between community will and legal compliance.
Tokens:
- Formation token: Functional token for service access and Grant financing.
- Governance token: Governance token granting voting rights to Association members.
Decision-making mechanisms:
- Voting (simple majority): Token holders vote on general matters.
- Qualified voting (qualified majority): Token holders vote on enactments, activations, and appointments.
- Qualified confirmation (multisignature 4/7): Verification mechanism for key financial and administrative actions.
- Voting with Qualified confirmation: A two-stage procedure for critical decisions (e.g., amendment of the Resolution), requiring approval of governance token holders and Verifiers.
Decentralized Compliance: Qualified confirmation (4/7) is not a technical signature but a “collective legal attestation” by Verifiers that the transaction complies with the Governance Resolution and that AML/Sanctions screening of the counterparty has been performed. This process is formalized in the “Due Diligence Regulation” and “Compliance Check Report Template.”
Operations and Representation
To interact with the external world, the Association employs Representatives acting under clearly defined authorities.
Delegation: The Association appoints Representatives to perform specific functions.
Activation: Authorities (general described in the “Mandate”) are activated, budget- and term-limited via the “Executive Act.”
Legal Protection: Representatives acting in good faith within their authority are protected by the “Indemnity Agreement.”
Protection Funding: This protection is financially supported by the “Legal Support Fund.”
Compensation: Representatives receive no salary but are entitled to expense reimbursement within the Executive Act budget, per the “Expense Reimbursement Policy.”
Asset Management and Specialized Funds
Financial stability is ensured by strict asset management policies and creation of targeted reserve funds.
Portfolio Management: The “Hedging and Asset Management Policy” establishes diversification rules and stablecoin limits to minimize volatility.
Reserve Funds: The “Asset Reserving Policy” establishes four targeted funds with mandatory minimum thresholds:
Special Research Fund (SRF): Research financing.
Special Development Fund (SDF): Grant disbursement.
Awareness Raising Fund (ARF): Public information.
Legal Support Fund (LSF): Indemnity and legal expense financing.
International Compliance and Risk Management
The framework ensures strict adherence to international standards to minimize regulatory and legal risks.
AML/CTF and Sanctions: The “Anti-Money Laundering, Counter-Terrorism Financing, and International Sanctions Policy” establishes a risk-oriented approach requiring KYC/KYB for Representatives and major grant recipients. Initiation is assigned to Qualified Verifiers upon transaction approval.
Tax Compliance: The “Tax Compliance Policy” places full responsibility for tax declaration and payment on fund recipients (Representatives, Grantees), protecting the Association from tax agent or employer status in foreign jurisdictions.
Technological Risk: The “Smart Contract Risk Management Policy” mandates audits, multisignature use for critical transactions, and simulation testing.
Data Protection: The “Privacy Policy” and “Cookie Policy” ensure compliance with international standards (including nDSG and GDPR) in personal data processing.
Disclosure: The “Official Information Disclosure Statement” and “Token Regulatory Status Memorandum” provide counterparties and regulators with a clear position on the legal status of tokens and associated risks.
External Interaction
All external interactions of the Association are governed by standardized templates protecting its interests and Mission.
Funding (Grants): The “Grant and Intellectual Property Agreement” mandates immediate and irrevocable transfer of all created Intellectual Property into the Public Domain as a condition for grant receipt.
Hiring (Contractors): The “Service Agreement Template” is used to hire auditors, developers, etc. Intellectual Property created thereby becomes the Association’s property (unlike with grants).
Negotiations: The “Non-Disclosure Agreement Template” protects confidential information in pre-contract stages.
Users: The “Terms of Use” regulate relations with website users and token holders, recording their agreement with the legal status and risks of tokens.
Dispute Resolution
The framework establishes two separate, legally binding mechanisms for conflict resolution, excluding state courts.
Internal Disputes: (between the Association, members, Representatives). Governed by the “Conflict Resolution and Ethics Regulation.”
Procedure: 1. Mediation -> 2. Internal Arbitration -> 3. On-chain ratification (as final veto or approval).
External Disputes: (with contractors, grantees, third parties). Governed by the “Arbitration Rules.”
Procedure: Mandatory exclusive arbitration at the Swiss Arbitration Center (Zug). Decisions are final and enforceable worldwide under the 1958 New York Convention.