3. DAO Governance
Last updated
Last updated
The democratization of water depends on a structured, non-manipulatable system of governance, resting in the hands of the community of token holders. To build this system, the best jurisdictions in the world are combined.
The foundation of the governance is to preserve and share wisdom of the indigenous people, connected to nature and the local ecosystems. This knowledge is represented in an advisory board in the Longhouse Foundation and shared in an internal educational system. This will secure the long-term perspective of the water well management.
To secure the democratization of control and access to water, the WATER150 tokens will be spread in a world-wide community, helping people in need to access clean drinking water.
The autonomy is secured by a voting system, where the community of token holders vote to elect representatives for the Longhouse Foundation board and the advisory board. The community can make proposals to the board.
The Water 150 by Longhouse Foundation governance system rests on three main entities
1) The Longhouse Foundation, responsible for the Acquisition of spring water
2) Longhouse Water150 AB, responsible for Operations and Marketing
3) Longhouse Water150 SA, issuing and Distributing WATER150 tokens
The acquisition of spring water is secured by long-term contracts or procurement of wells, protected by the Longhouse Foundation regulated by Swedish law. Longhouse
Longhouse Water150 AB is a Swedish company with Longhouse Foundation as the majority owner, dedicated to managing the distribution of water. The tokens will be minted by a Luxembourg company, dedicated to this purpose.
The entities are legally linked together by a business contract, the “Tri-Party cooperation agreement”, that cannot be changed. The agreement describes how the delivery of the pre-purchased water, the WATER150 token, is secured by water assets in the Foundation and operatively taken care of by the Swedish company. The contract clarifies the liabilities between the companies and the division of resources between them.
The Longhouse Foundation is a link between humanity and nature. It strives to ensure a functioning ecosystem, where each party prospers in the presence of the other.
The mission is to create a Regenerative Finance organ that cares for planet Earth and protects ecosystems and humanity. The vision is to reconnect humanity with nature and generate a movement to secure abundant life on earth for the next seven generations (150 years).
The Swedish model for foundations is among the world’s most solid and secure. By Swedish law, the foundation motives described in the Foundation Decree (Swedish: Stiftelseförordnande), cannot be changed after they have been registered by the Swedish authorities. Thereby the purpose of the foundation is protected.
The foundation is led by a Commercial Board. They will manage the acquisition of wells and work through the tri-party agreement for distribution of water and tokens. The water assets are purchased, leased, or drilled spring water, secured for 150 years or more.
The Commercial Board’s decisions are established in alignment with the foundation’s wisdom advisory board. The individuals in those forums will have to share the direction, focus, drive, and vision of the Longhouse Foundation.
The Advisory Board respectfully gathers wisdom from ancient civilizations and the indigenous people with a relationship with and knowledge about the local nature and culture around natural springs. This knowledge gives guiding principles for decisions in the foundation and companies.
During the setup, the Commercial Board is engaged with people with expertise in building an impact business to ensure the vision becomes a reality. When there is a pool of candidates available to be elected by the community of token-holders, the step-by-step switch to community-elected representatives will start.
To be elected to the Board of Directors, all candidates attend an education within the Longhouse organization. The education creates an understanding of the Longhouse system of creating global impact, through the value pillars of wisdom, nature, and inspiration.
Longhouse Water150 AB is a Swedish private LTD company with the responsibility to secure and manage the distribution of water. They market and handle all operations for the WATER150 tokens as well as build the worldwide brand ‘Water150 by Longhouse Foundation’. Longhouse Water150 AB builds value through immaterial property as branding, and cash flow from the main business and additional services.
During the setup in the first 10 years, the A-shares are owned by the Longhouse Foundation and B-shares are owned by shareholders (founder, co-founders, investors, and key people). The Shareholder agreement regulates that Longhouse Foundation will buy the B-shares before 2032 and become the sole owner of the value built up in the company.
The company has a Tri-Party cooperation agreement with the Longhouse Foundation and the Luxembourgian SA company. The agreement regulates the company’s role in fulfilling the purpose of the Longhouse Foundation and its Decree. The conditions in the agreement clearly define the rules and focus of the work for Longhouse Water150 AB.
Longhouse Water150 AB will be active in the global water market, mainly focusing on selling WATER150 tokens, establishing and running new wells, distributing clean drinking water, and identifying and signing contracts with well owners for the Longhouse Foundation.
Longhouse Water150 SA is the issuer of the WATER150 token and manages the cash flow from selling WATER150 tokens in the subsidiaries. To issue the WATER150 tokens on a blockchain, competence and experience of handling decentralized blockchain assets is needed. Longhouse Water150 SA is working in and from Luxembourg, because of its well-developed regulatory environment. The Longhouse Water150 SA is connected to Longhouse Foundation by the tri-party business agreement.
The money from the W150 customers goes into the Longhouse Water 150 SA bank account and are transferred to the Longhouse Foundation and Longhouse Water150 AB in Sweden according to the Tri-Party cooperation agreement.
There are several jurisdictions (countries) with experience and competence in approving utility tokens, and technically there can be more than one jurisdiction issuing on the same blockchain. The issuance of tokens has started in Luxembourg (EU) from the Longhouse Water150 SA. There can be W150 tokens issued for up to 5 M€ according to the crowd funding laws of the EU. There is a current evaluation ongoing for jurisdictions in Portugal (EU) and Liechtenstein (EU)/Switzerland as issuing countries, either as subsidiaries to Longhouse Water SA in Luxembourg or directly under a governing foundation with no owner (an orphan structure).
The decision to choose the future jurisdiction is connected to how to best define the WATER150 token set up from a DAO (Decentralized Autonomous Organization) perspective.
A true DAO model structure
A decentralized autonomous organization (DAO) is a legal structure that has no central governing body. The members share a common goal to act in the best interest of the entity.
The Water150 by Longhouse Foundation structure is designed to become a DAO, securing 1000 real-world water assets within 10 years.
The rules are clear from start:
Longhouse Foundation will be the majority voting owner in Longhouse Water150 AB already by 2023. The voting mechanism allowing the blockchain community to choose the Board of Directors will enter into force in 2026.
The investors and founders build the structure and create a global proof of concept within 10 years. They hand over the system to the blockchain community to govern it for the remaining 140 years.
All dividend-paying shares will be sold to the Longhouse Foundation for a predetermined price of max 1,5B€ at the latest in 2033.
Thus, Water150 by Longhouse Foundation is a new type of business system that incentivizes entrepreneurship and favors true democratization with a DAO model.
