last edit Charm 10.08.24

Operational Hub (OH)

• Function Operational Hub

  • Main functions (why?):

    • Public Good supplier coordination: Structures relationships among public good contributors and the marketplace
    • Increases Supply of valuable Public Goods. Build a library of open-source operational and legal apps for DAO operators.
    • Facilitate contribution by abstracting related legal risks and operational complexities for suppliers
    • Increase efficiency in the supply of Public Goods by providing legal and operational infrastructure for suppliers

    Function Genesis Powerhouse Operational Hub

    The purpose of an Operational Hub as a Swiss association and not-for-profit organization is to orchestrate collaboration among contributors in support of the creation of trustless infrastructure, resources, and operational strategies to serve as public goods for anyone to build or add upon.

  • Main activities: (what?)

    • Legal counterparty for DAO service providers and builders
      • Operational Hubs will enter into (legal) agreements with contributors. These contributors may be of different degrees of sophistication, from pseudonymous, individual contributors; to informal teams, incorporated companies, or even larger enterprises.

  • Coordination and management of decentralized supplier networks

    • Operational Hubs will help coordinate contributors’ work on public goods. During development, OHs provide necessary operational support, project management, and cash payments. OHs maintain a few months of operating capital to guarantee minimal income stability for contributors and. Later, it can also manage a backlog of specific projects that can be assigned to contributors depending on their specific skill sets, experience, and personal preferences. Contributors can also take on more sophisticated forms of collaboration, starting as individuals, later managing their own team and budget, and then having their own OH or Operating Collateral Fund.

  

  • Facilitate fast, unbureaucratic engagement of contributors and suppliers with minimal operational, financial, or legal risk

    • Contributing to web3 projects is not always an easy task; developers are confronted with an array of legal, tax, financial, and operational issues. Also, traditional companies face numerous challenges when working with DAOs or receiving funds from unincorporated multisigs (e.g., contracting, KYC, invoicing, etc.) A key function of OHs is to minimize operational and legal complexities and derisk their activities.

  • Shared operational and legal service platform for contributors

    • OHs offer necessary operational technology (the first generation built in-house by Powerhouse), toolkits, multisig infrastructure, legal templates, and subscriptions to third-party services. An OH will also channel payments from investors, as of 2024 only MakerDAO, and Operational Collateral Funds (to be implemented), offer crypto off-ramps and payments in fiat, and serve as an invoicing recipient for contributors.

  • Contracting roles

    • Contributors will relate to the OHs as general contractors.

    • OHs will also have at least one Project Management role. This role will have a controlling function regarding contributors’ work, signing off on deliverables according to agreed-upon milestones, verifying requirements for each payment type, and administering progress reports.

    • The Operational Hubs will not accrue value or strive for profit.

      • Value accrual may happen among the general-contracting contributors. OH treasury may temporarily hold funds that have not yet been distributed to contributors, but the entities themselves are not intended to accumulate capital or distribute profits.