U-Topia Metaverse is an evolving metaverse with Web 3.0 technology on the fore. It aims to form decentralized governance that is in contrast with traditional corporate entities.
However, recently Decentralized Autonomous Organizations (DAOs) have come under fire for having shaky legal standing, liability, and project management capabilities. Legally speaking, a number of jurisdictions categorize DAOs as single partnerships or similar businesses, making members personally liable from a legal, regulatory, and tax standpoint.
U-Topia Corporate has chosen to be registered in Switzerland due to the prevalent DLT technology in Switzerland, making it compliant with the legal and technical framework changes brought to the DAOs. The result of those changes has brought forward a new entity called Decentralized Autonomous Associations (DAA).
WHAT IS A DAA?
The DAA structure, which was established as the end result of the journey that began back in 2017, combines the advantages of a recognized legal entity structure with the effectiveness, transparency, and democracy of a blockchain-based governance system.
The Swiss Association is a recognized legal organization for charitable purposes that limits the responsibility of its
members. A collection of natural individuals and/or legal organizations that are created and structured in accordance with a written agreement in order to further a non-economic goal constitutes an association under Swiss law.
THE DAA OF U-TOPIA
The structure of governance in U-Topia Corporate is also a Decentralized Autonomous Association. There are certain levels of the hierarchical structure for the decision-making process which depend on the “Stakeholders Rights.”
In a system known as "stakeholder capitalism," businesses are motivated to advance the interests of all of their stakeholders. Customers, suppliers, workers, shareholders, and local communities are some of the important stakeholders.
However, stakeholders are able to opt-out of a DAO/DAA and only do so after becoming familiar with its regulations. The interests of token holders are aligned since a DAO's structure encourages positive conduct. They will want the network to flourish because they have an interest in it. It would be against their self-interest to do otherwise.
The low amount of trust required between two parties is a key benefit of DAOs. With DAOs, just the code has to be trusted, unlike traditional organizations that require a lot of faith in the individuals running them, particularly on the part of investors.
Trusting that code is simpler because it is open to the public and can be thoroughly checked before launch. Following the launch, every decision made by the DAA is subject to community approval with the means of voting and participation in the organization's decisions and is fully public and verifiable.
There are certain levels of hierarchical structure in the decision-making process within the DAA of U-Topia Metaverse Corporate.
It operates in accordance with the following pyramid, with the corporate shareholders being on the top of the ladder making the most important decisions in the corporate like the changes on the corporate level and other high-end stuff. Whereas, the lower levels include the treasury voting on events related to investments and other financial matters, the developers working on the changes in code, and then the community who will be voting on decisions for buildings, events, conferences, concerts, etc.
The pyramid for the hierarchy in the DAA in the U-Topia Metaverse Corporate is as under: