From discord
Our legal advisors suggested a middleman setup
A Web3 company would be setup as a for profit foundation in Cayman or Singapore. It would have no shareholders and only vote-bearing members (who thus have no liability)
A Web2 entity would live as an LLC. This LLC would enable the DAO to interact with the real world, own bank accounts, sign contracts, have payroll etc. It would have a General Manager (leader of the Core team, comprised entirely of web2/doxxed hires) as its signatory. This is the company who processes/receives payments, then pays for its costs (the Core team) and then sends 100% of free cashflows to the web3 entity treasury as a royalty payment.
It will be effectively licensing the products from the foundation (which will legally own the products) and paying the foundation a royalty against that license to operate the products (+ pay income tax + hire people and contribute to US GDP) for the foundation
Those royalty payments are the dividend yield, paid from the web2 entity to the web3 entity treasury
foundation membership payments flow through from treasury to token holding wallets
The reason DAO members receive compensation is because their contribution builds and improves the decentralized governance system that powers the DAO decision making from the perspective of acquisitions, operations, yield and liquidations.
The members service the DAO by improving its governance, and are compensated by receiving a part of the royalties collected by the DAO for that service.
Neither the web2 nor web3 entity is offering an investment contract and the legal framework effectively acts as a middleman. The web3 entity enables anyone to purchase membership into the DAO, and membership provides voting power to decide how the treasury gets allocated, which benefits the DAO as it enables it to properly invest its treasury and return positive output from it. In compensation of this service, the DAO pays its members (the yield).
Not a security
The advisors made it clear that the more lives on decentralized governance (in the web3 entity), the smaller the liability becomes on the web2 entity itself. The DAO members are never exposed to any liability
I simplified it a lot and I may even be wrong on a bit or the other. Will reverify my notes but that’s the general idea