Transitional Obligations like resident/citizen and commercial activity taxes

I’ve been giving some thought to this as I’m transitioning to a DAO and just wanted to get some of your thoughts on it. :thinking: :thought_balloon: :bulb:

While we’re yet to transition to a state where the individuals starting a DAO would be independent from a sovereign nation. a sovereign nation which would be enforcing their tax obligations. obligations like personal income, capital gains etc for the individual. they could then argue that a DAO run by said individual isn’t legally recognised and sees it as a conventional company - for them to then posit that they are owed tax from its commercial activity.

coming from the UK as far as i can be able to make out, unlike the US, where no matter where in the world you are or however long long you’ve been there - uncle sam wants his cut! (protection money :angry:) in the UK, you can be a citizen but not a resident. resident is defined as actually living in the country for more than 6 months of the year. an important distinction as one is exempt from things like personal income or capital gains tax if you’re a non-resident. so a digital nomad is then able to say set up a DAO without the government tentacles…

so i’m just curious as to whether others have given thought to this particular potential issue… but also others which could be achilles heel type problems, please do share. i think this just might be big enough of a vector that it needs it’s own category (ecosystem onboarding?) to highlight it and enable in-depth exploration! :nerd_face: :bulb:


You might find this thread interesting: Jurisdiction for Crypto Natives


Depending on the type of business, one could do this from anywhere and just use a pseudonym to run the business if they don’t want to worry about paperwork.

Think about it, now it is possible to create a website, create a company, send and receive payments, without ever needing to use a legal identity. For all intents and purposes digital sovereignty is completely within our grasp. Obviously there are some taxes that are always inevitable, like sales tax when you shop or property tax if you own a home and don’t want it taken away. But lots of income could be earned completely “off shore” and tax free using an Aragon company, and spent like cash with few to no ties back to a “real world” ID. I’m not advocating to break the law, it is just interesting to think about what is actually possible now that was just sci-fi not long ago.


there are existing reference we could look to that do varying versions of these - although not crypto skewed - repurpose the learnings for crypto enabled self-sovereignty.

i’m working on some such thing in wiki form for those interested…