# MIP#43

```
MIP#: MIP43
Title: DAO Position - Finance & Compliance Head
Author(s): MVCLabs
Contributors:
Editor: N/P
Date Proposed: 
Date Ratified: 
Dependencies: MIP-39
Replaces: N/P
Exception to MIP: N/P
```

MIP#39: [https://mvcdao.gitbook.io/mvc-dao/proposal-and-recap/mvc-proposal-record/mip-39](https://mvcdao.gitbook.io/mvc-dao/proposal-and-recap/mvc-proposal-record/mip-39)

Txid: [d0cfd0204e7390c0dd2781258d251c18178a78f8ed4193cb984f615b80319a06](https://www.mvcscan.com/tx/d0cfd0204e7390c0dd2781258d251c18178a78f8ed4193cb984f615b80319a06)[https://www.mvcscan.com/tx/d0cfd0204e7390c0dd2781258d251c18178a78f8ed4193cb984f615b80319a06](https://www.mvcscan.com/tx/d0cfd0204e7390c0dd2781258d251c18178a78f8ed4193cb984f615b80319a06)

Vote option:

1\)      Jason Kwok

2\)     No

Candidate List: [https://docs.google.com/presentation/d/1EfqL\_nAtW4f1D-kEDkvwghqAjHdVqT8DJSRcgoVS8M8/edit?usp=sharing](https://docs.google.com/presentation/d/1EfqL_nAtW4f1D-kEDkvwghqAjHdVqT8DJSRcgoVS8M8/edit?usp=sharing)

* <mark style="color:red;">**Executive Summary:**</mark>&#x20;

The Finance & Compliance functional department within MVCDAO is dedicated to maintaining the organization's integrity, and adherence to regulatory compliance. This department is pivotal in ensuring operational transparency, accountability, and alignment with strategic objectives, thereby building trust within the community.

* <mark style="color:red;">**Proposal Details:**</mark>&#x20;

Twitter Handle: https://twitter.com/Jason\_K0001

Telegram Handle: https://t.me/Jason\_K0001



***

* <mark style="color:red;">**Personal Introduction:**</mark>

"I am Jason.K, a co-founder of MVC, hailing from the vibrant city of Macau. I have been serving as the  COO and neutral facilitator, ensuring the smooth operation of MVCDAO since February 2023.

I firmly believe that freedom without rules leads to chaos. Rules and principles are the guardrails that keep us on the path of fairness, preventing us from veering into manipulation. Decentralization isn't synonymous with Utopian socialism; it means we all agree to abide by the same set of rules.

If you believe a rule isn't serving its purpose, let's discuss it! We can propose changes through the DAO and create new rules that reflect our evolving needs and challenges. That's the beauty of DAO governance - it's a dynamic entity that grows with us.

***

<mark style="color:red;">**Next Election start sometimes in Jan 2025 depends on schedule.**</mark>

***

<mark style="color:red;">**Important remarks:**</mark>

All elected member will be required to complete the following:

<mark style="color:red;">**Confirmation Requirement:**</mark>

Failure to return this agreement with full consent and acknowledgment within two weeks of receipt from MVCDAO will result in the nullification of the elected position. A new election for the vacated position will be initiated within two weeks.

Acknowledgment and Agreement:

I, the undersigned, hereby commit to:

1. Uphold the MVCDAO Constitution as per MIP-1.
2. Uphold the extended Constitution proposal MIP-39.
3. Follow the General Code of Conduct.
4. Act in MVC's best interest for the long term.

By signing below, I hereby acknowledge and agree to the following terms and conditions as part of my role with MVCDAO:

A) I understand that until this agreement is both signed and returned by MVCDAO and the elected member, I should not represent myself as a committee member or department head of MVCDAO.&#x20;

B) I understand that until KYC information is provided to MVCDAO, I should not represent myself as a committee or department head of MVCDAO.

I have thoroughly reviewed and understand the details and implications of MIP-1 and MIP-39.&#x20;

C) I acknowledge and accept all disclaimers outlined in MIP-39.&#x20;

D) I am aware that any non-compliance with these terms may result in the termination of my role, as detailed in Section 9 of MIP-39.&#x20;

E) I fully understand that any use of the MVC brand or my position to engage in deceptive or fraudulent conduct is strictly prohibited and that I will be held fully liable for any losses resulting from such actions. I acknowledge that the neutral facilitator and compliance department reserve the right to take appropriate action against me on behalf of MVCDAO.&#x20;

F) I fully understand that the misuse of MVCDAO's resources and branding for illegal promotional activities, as outlined in Section 9 of MIP-39, is prohibited and that I will be held fully liable for any losses resulting from such illegal activities. I acknowledge that the neutral facilitator and compliance department reserve the right to take appropriate action against me on behalf of MVCDAO.&#x20;

G) I fully understand that engaging in activities that encourage other members to violate the compliance and disclaimers stated in MIP-39 is prohibited. I acknowledge that the neutral facilitator and compliance department reserve the right to take appropriate action against me on behalf of MVCDAO for such violations.

H) I fully understand that Space is not an investment vehicle; therefore, advising others to use it for investment purposes is forbidden.

I) I commit to assisting in maintaining an informed and unambiguous environment within the MVC community. In case a member accidentally enters a community that does not align with their values, I fully understand that to ensure members make informed decisions, I will assist by providing the acknowledgment application form prepared by compliance department to the relevant member to confirm their full awareness of MVC general principles.

J) I fully understand that any changes to proposals require an on-chain DAO proposal, except as otherwise specified in MIP-1 and MIP-39.

K) I fully understand and agree to the following General Rules:&#x20;

K1) I am responsible for all taxes associated with my role and any rewards or grants received.&#x20;

K2) All rewards and grants are subject to applicable laws and regulations.&#x20;

K3) MVCDAO is not liable for any losses incurred due to incorrect recipient addresses provided by me.

By signing this document, I confirm my full understanding and agreement to adhere to the terms and conditions outlined above, recognizing that failure to comply may result in disciplinary action, up to and including the termination of my role and take full liability for the loss due to deceptive or fraudulent conduct.

***

* <mark style="color:red;">**Disclaimer & Remarks:**</mark>

**1) Disclaimer on Investment Intentions**

Due to regulatory compliance and legal purposes, in the Official MVC Channel and general real life conversation, Space cannot be acknowledged or discussed as an investment vehicle. Please respect the official channel policies and adhere to them, as they are mandatory for all members. Thank you for your understanding.

Decisions to acquire or use Space for speculative or investment purposes are solely at the discretion of the individual. MVCDAO explicitly disclaims any responsibility for losses that may arise from such actions. Members are urged to exercise caution and make informed decisions.

**2) No Assurance on Space Value**

Please note that MVCDAO does not make any commitments or guarantees regarding the value of the network gas: SPACE.

**3) No Investment Advise:**

This proposal is focused on enhancing the visibility and sustainability of the MVC network. It is important to note that the arranagement mentioned in this proposal do not constitute investment advice. Participants and all members should refrain from interpreting it as such.

**4) Conflict of interest declaration:**

The author of this proposal has not received any commission.

**5) Limitations of the Finance Department:**

The finance department can't simply wave its magic wand and make every other department and builder program efficient, effective, and free from fraud.

**5A) Efficiency and Effectiveness: Not Guaranteed by the Finance Department:**

The finance department focuses on the numbers, but other departments might prioritize strategic goals that are more about long-term growth than immediate, short-term efficiency. It's up to each department to use the budget resources effectively.

Imagine giving someone all the ingredients to bake a cake; the result depends on the cook who bakes the cake. Similarly, the finance department allocates the resources according to the budget and authorization criteria, but how those funds are used is up to each department's expertise and the overall condition of the industry.

**5B) Fraud: Not Guaranteed by the Finance Department:**

It is not within the purview of the Finance Department to ensure the operational smoothness of other departments or to prevent third-party fraud. Various departments should conduct thorough due diligence to mitigate the risk of external fraud.

**5C) Builder Program: Not Guaranteed by the Finance Department:**

The subsequent operation of applications coming from the builder program is not monitored or endorsed by MVCDAO and the finance department. All members should exercise caution for any engagement with applications coming from the builder program in the future.

**5D) Clarification of Confidentity Rule**

In the dynamic world of blockchain, striking the right balance between transparency and confidentiality is crucial for partners, vendor names, and their associated costs, especially when it comes to financial disclosures in public relations efforts. We can only disclose categories rather than exact costs and vendors to the public.

Here's a streamlined overview of the importance of maintaining confidentiality:

1. Competitive Edge: Keeping transaction costs private safeguards strategic insights from competitors, preserving a project's competitive edge.
2. Negotiation Leverage: Confidential financial dealings enhance a project's bargaining power with vendors, potentially leading to more favorable terms.
3. Partnership Dynamics: Revealing partner details and costs may deter potential collaborations.
4. Vendor Relations: Respecting confidentiality agreements with vendors may necessitate limited disclosure of specific details and costs.

While confidentiality is key, it's important to balance this with transparency to build community trust. This balance is achieved through detailed internal reporting by the finance department and regular audits by reputable audit firms, ensuring integrity and trustworthiness. This approach underscores a commitment to integrity, with the first external audit scheduled for mid-2025, a year after integrating financial data into the SINOHOPE all-in-one system.

**5E) Payment Flexibility to protect vendor and service provider interest:**

For a service or vendor costing 5,000 USD, department heads are authorized to pay up to around 5,250USD worth of space to accommodate the fluctuations issue. This flexibility ensures the protection of interests for both vendors and service providers at the time of transaction in accordance with the standards detailed in Section 14\[MIP-39].

Disclaimer point 5A to 5E outlines the limitations of the Finance Department's responsibilities, emphasizing the collaborative effort required across departments and the DAO to achieve organizational objectives effectively.

**6) Clarification of the Committee's Role within MVC**

The Committee serves as an advisory body and procedural auditor for the \[builder program], offering insights to support MVC's mission. It's important to emphasize that the Committee does not engage in the direct management or governance of MVC.

Final decision-making authority rests with the respective department heads. It is essential for the Committee to respect these boundaries and gracefully accept the decisions made by the department heads.

If a committee member believes that a department head's actions do not align with MVC's best interests in the long term, the committee is empowered to propose the impeachment of a department head during their tenure. The impeachment process requires:

A) A 67% approval through a DAO MIP Proposal submitted by any member holding at least 0.2%.

B) Consent from 4 out of 7 Committee members, plus a 60% approval from a DAO MIP On-Chain Proposal.

**7) Fostering a respectful and informed MVC community.**

**7A) Informed Participation:** We urge all members to make informed decisions regarding their involvement within the MVC community. In case a member accidentally enters a wrong community that does not align with their values, our compliance department offers an acknowledgment application form. This process ensures that all members are fully informed and agree to all general principles before rejoining, maintaining a clear and understanding environment for everyone.

**7B) Access and Re-entry:** MVCDAO position members should not grant re-access to any member with restrictions without the completion and submission of the acknowledgment application form. This policy is in place to ensure that all members have a clear understanding of all general principles, thus minimizing future chaotic situations.

We appreciate your understanding and cooperation in fostering a respectful and informed MVC community together.

**8) Termination due to non-compliance:**

* **Breach Policy:** Violations of criteria I to K listed in Section 8, upon to three times with evidence, allow for the immediate termination of any position with either the consent of a neutral facilitator or four committee members, or a DAO MIP proposal with 60% approval.
* **Fraud Policy:** Any deceptive or fraudulent conduct, proven once with evidence, allows for the immediate termination of any position with either the consent of a neutral facilitator or four committee members.
* **MVCDAO Resource and Branding Guidelines:** MVCDAO strictly prohibits the misuse of its resources and branding for illegal promotional activities. This includes, but is not limited to, offline pyramid selling, multilevel marketing activities, or any similar promotions. Any position holder found violating this policy will face immediate termination from their role within the organization.
* **Lack of vSpace holding requirement during the Tenure:** Either the consent of a neutral facilitator, four committee members' consent, or a DAO proposal with 60% approval, to terminate the department head's tenure immediately.

**9) MVC operates autonomously, independent of all ecosystems.**

**9A) Ecosystem Inquiry and Communication:**

While MVCDAO itself doesn't manage ecosystem communication and operates independently from all ecosystem, we're more than willing to facilitate connections and provide the necessary contact information to ensure community members can reach out to the right ecosystem representatives or channels for communication and inquiries.

Just as the Ethereum Foundation operates separately from the ecosystem, we encourage inquiries to be directed to the specific ecosystem representatives for the most accurate and helpful responses, rather than directing inquiries directly to the Ethereum Foundation, or in our case, MVCDAO.

**9B) Ecosystem Competitiveness:**

We're thrilled to witness the rapid evolution and diversification of the MVC ecosystem, particularly following the launch of the builder program. However, it's important to clarify that the MVC DAO budget is dedicated solely to MVC and does not extend to supporting the operational or competitive aspects of ecosystem projects, except for node operation.

Ecosystem projects are responsible for their own competitiveness and operational costs post-launch. While we celebrate the achievements and exciting news of ecosystem partners, MVC DAO do not ensure their market competitiveness.

**9C) Ecosystem Safety:**

The safety of any ecosystem cannot be guaranteed by MVCDAO. We are not responsible for any losses incurred due to hacker attacks or interactions with ecosystem projects or partners.

Members are advised to proceed with caution when engaging with any ecosystem or partner projects.

**9D) Supporting the Ecosystem:**

We want to express our appreciation for the members' valuable support in boosting the exposure of the ecosystem. Your efforts are deeply appreciated.

However, MVC maintains neutrality and does not officially endorse any specific ecosystem entities, including early contributors, MVClabs, or participants in the builder program.

Should any member engage in activities such as organizing AMAs with ecosystem developers or offering assistance to any part of the ecosystem, we encourage the member to reach out directly to the involved ecosystem representative and their relevant channels for discussions regarding their policy on potential rewards.

To ensure clarity and prevent any future misunderstandings, we recommend establishing an agreement with the respective ecosystem if rewards are anticipated for support. Otherwise, it may be beneficial to consider such contributions as voluntary.

10. **Heads Up!**&#x20;

MVCDAO can't predict the future. We can't guarantee the outcomes of DAO proposals, including media exposure, events, AMAs, rebranding efforts, and builder programs. We encourage members to do their homework and make informed decisions when voting on proposals.

11. **Community Responsibility:**

If a proposal appears questionable, lacks detail, or has escalating costs, members are encouraged to vote 'Against the Proposal' and question its feasibility and cost-effectiveness. Your voice and vote matter!



