👾 The LAO - FAQs

# Projects

# How do projects get funded?

Once a funding proposal is submitted for your project, the proposal will be submitted to The LAO members to decide whether to nominate your project for funding.

If your funding proposal is nominated, The LAO members will then vote on whether the project will receive financing from The LAO. If approved by a majority quorum of The LAO Members, the project will then receive financing in the form of a convertible note. All project financing will be allocated to LAO projects in the form of the cryptocurrency ether. Investment amounts have ranged from $50,000-$250,00 (settled primarily in ether).

# How does my project receive funding from the LAO?

Potential LAO projects are asked to apply through an application process that includes the following materials:

  • Project name and contact information

  • Project description

  • Existing investors

  • Incorporation information (including Articles of Incorporation)

  • Project smart contract address

Once your application is submitted, The LAO members will have the option to nominate a project to receive financing from The LAO. If more than 50% of The LAO members approve a funding proposal, the project will receive financing.

# Do I need to have a blockchain-based product to submit an application?

For the first LAO, our ambition is to create a fund for projects in the Ethereum ecosystem. The LAO members will set forth an investment plan for the type of investments that they wish to finance in The LAO. Feel free to submit a proposal for anything in that realm, whether it be a protocol, dApp, or other project. All are welcome.

# What entity type should be created for my project in order to submit a funding proposal?

We ask that projects who wish to submit a proposal be an entity registered in a U.S. jurisdiction. OpenLaw has some basic incorporation documents (see here (opens new window)). The LAO members may, however, elect to invest in LAO projects organized outside the US.

Please seek legal counsel regarding any incorporation documents or questions on entity choice.

# How much of my project (in terms of equity) will be transferred to the members of the LAO?

The LAO members will have the opportunity to vote on the amount of financing that is provided to approved projects and The LAO's service provider works with the project to settle the investment.

# After a potential LAO project submits an application, can the project change the information that was submitted?

Yes! If a project wishes to change any information that was submitted during the application process, it can do so by contacting us at hello@thelao.io.

# How does a project withdraw from The LAO?

During the voting period (prior to being sponsored by a LAO member) potential LAO projects will have the ability to withdraw their funding proposal from The LAO.

Through a smart contract cancelProposal function, potential LAO projects are able to remove their application from consideration for funding from The LAO.

# Who can view information included in project funding proposals?

The LAO project proposals can be set to be private. Project proposals including all materials that are submitted to The LAO are restricted to applicants who submitted a funding proposal and members of The LAO.

Should potential projects have additional questions regarding privacy concerns, please email us at hello@thelao.io.

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