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FAQs
Will the DAO own or buy Rancho Margot?
The DAO will not own Rancho Margot. It will have permanent Rights to enable the DAO to govern and lead Rancho Margot into the future. If shares are sold in Rancho Margot, it would only be to the DAO. This decision should be taken when the laws are established and the consequences are known.

What are the legal structures?
Rancho Margot is a Costa Rican corporation (Rancho Margot SA) and the DAO would need to be incorporated in a US state as a Limited Liability Company (LLC). Wyoming is the primary candidate for DAO incorporation.

How do DAOs work?
DAOs are started by a group of people who share a common vision and turn it into a business plan. Native tokens and/or NFTs are sold to have the funds to launch the vision, whatever that vision might be. The DAO is decentralized and runs on a blockchain protocol. Once decisions are made and recorded on the blockchain, smart contracts execute. DAOs can employ staff but there is no chief executive, the DAO decides.

How are decisions made in the DAO?
DAOs must have clear rules. DAO members vote on proposals elevated to a vote. There are different mechanisms for elevating proposals to a vote. Voting is usually on blockchain but some DAOs vote off-chain and only encode the results in the blockchain after the fact. Voting can be as simple as one person one vote or vote by the number of tokens someone owns. More often there are formulas or reputation tokens used to make certain that no one group of individuals can exercise undue influence or so that those that engage productively with the DAO have more influence.

Who can be a member of the DAO?
Anyone that owns a native token in the DAO. Tokens can be given away, earned, or sold. If you sell or give away your tokens, you seize to be a member of the DAO.

Why would someone want to buy the DAO’s native token?
There are people that understand and support the vision and at the other extreme there are speculators that bet on the team to create value so they can sell the token at a profit.

How is value created in the DAO?
Value is created by the active members through productive engagement. This engagement is incentivized and rewarded with native tokens. Engagement can be manifested in a myriad of ways, from providing a recipe, to leading a workshop, and handling activities in the DAO like communication,  monitoring indicators, marketing, event planning, and everything in between.

How is transparency guaranteed?
The DAO’s actions should always be on the blockchain and Rancho Margot SA must be regularly audited and its finances available to all DAO members to see. Communication between DAO members is done on different platforms depending on the technology best suited, but once ideas mature through the layers of scrutiny within the DAO, they are elevated to the level of a proposal on the blockchain ledger.

How does Rancho Margot contribute to the DAO?
Our staff is incentivized to join and engage with the DAO and Rancho Margot S.A. will pay the DAO in USD for services the DAO performs. The members of the DAO determine and authorize the individual bonus distribution to our staff of 25% of the profits generated by Rancho Margot S.A. The staff will receive special training to effectively engage with the other DAO members.

Will Rancho Margot accept native tokens as payment?
Yes. Rancho Margot has a bioregional dimension and with the introduction of activities such as a farmers market and a CSA program, we will try to introduce the token into the local economy. Both Rancho Margot and the DAO will have USD accounts and crypto holdings as part of their operations.

Disadvantages of DAOs that are NOT?
1. The voting process is too slow for DAO to react.
The DAO must have a vision and make strategic decisions to avoid urgent and critical decisions. The exception may be a hack that requires immediate action otherwise the DAO’s activities can be limited so no urgent action is required. In Rancho Margot, there is a leadership team that must react often with little warning. As members of the DAO, they have a say and a vote on strategic decisions that may affect Rancho Margot but not on the ground where they must perform their duties. How well our staff avoids or reacts to unforeseen events is evaluated by the DAO members.

2.  Engagement from members is traditionally low.
DAOs are new, there is no tradition and much of the value created is hype. Engagement indicators more generally reflect the level of speculation involved instead of real commitment. Solving the engagement issue is the holy grail of building a successful DAO. It begins with education and here we are partnering with the University of International Cooperation to create a program around the building of this DAO.

DAOs are most often than not limited to the digital space, with Rancho Margot we add an entirely new and established dimension to engage people. In Rancho Margot we have to keep our numbers small and get the job done, traditionally it is difficult to attract talent to such a remote location. In the DAO the more members the better and the pool of potential talent is unlimited.


Why not sell tokens or NFTs to fund the DAO?
Most importantly we do not have to. Any price you set is arbitrary based on an expectation of value creation which may or may not materialize. At some point, we will sell both native tokens and NFTs but at this stage, the sale may negatively influence the building process.

Can the DAO incur debt?
Initially, the answer is no. The DAO should maintain a healthy treasury and if money is needed then the DAO can decide to sell native tokens.

Does the DAO have headquarters?
No, it is not necessary but the DAO could decide to change that. It must however have a registered agent that is domiciled in the state the DAO is registered.

Can the DAO change its rule?
Yes, the members of the DAO can change the rules.

Send us an e-mail at info@ranchomargot.org if you have any questions and/or concerns.