Book Keeping Solutions forDecentralized Organizations

Web3 Start-ups functioning a decentralized model cannot operate of existing generally accepted accounting practices (GAAP) and need to have customised accounting practices and bookkeeping solutions to record their expenses and payroll including asset tracking and visualization which will enhance their treasury management capabilities.

DeFi apps require “DAOs,” or Decentralized Autonomous Organizations, to operate. DAOs manage DeFi apps through the individual decisions made by decentralized validator nodes who own or possess tokens sufficient in amount to approve blocks. Unlike joint stock companies, corporations, limited partnerships and limited liability companies, however, DAOs have no code (although, ironically, they are creatures of code). In other words, there is no “Model DAO Act” the way there is a “Model Business Corporation Act.” DAOs are “teal organizations” within the business organization scheme theorized by Frederic Lalou in his 2014 book, “Reinventing Organizations.” They are fundamentally unprecedented in law. It’s time for legislation and regulation to follow where the technology is taking us.

There are more than 18,000 tokenized blockchain projects across the world. Typically, these projects exhaust the seed funds raised for the development of the project in a span of 12-18 months, after which the teams sell their allocated tokens in the open market to fund development of the project, which in turn leads to fall in the price of the token, devaluation of the project and the impact is considerably higher during a bear market. In the Blockchain space the project attracts more adopters as long as the price of the token appreciates in value, selling of team tokens create adverse impact on the adoption of the project. CR Square Finance provides an opportunity for these projects to list their native token as collateral subject to CR Square Finance DAO approval. Tokenized Blockchain projects can find a breather in making regular payments for their development expenditure including salaries, rent, marketing and other costs. The Blockchain Project has to in turn compensate the DAO gCR2 holders with an airdrop of their tokens for getting their token listed.