Legalizing MetaGame

It’s been nice being able to say “we’re registered on Ethereum” but I think it’s unfortunately time we made an actual legal wrapper & play by at least some of the rules, because:

  • The whole thing of all members being held liable for the DAO’s actions if there’s no entity
  • Doing a proper fundraise requires having a legal entity

General recommendations in the DAO space over the past few years have been Wyoming & Delaware but the regulatory landscape in the US seems to have become increasingly hostile towards crypto over the past months. This uncertainty + the cost of doing business in the US (expensive lawyers etc.) mean we’re probably better off starting a legal entity elsewhere.

Other suggestions have been Puerto Rico, Cayman Islands & idk. To me personally, it seems these kinds of jurisdictions are generally chosen by shady projects that seek to avoid US regulation & taxes.

This leads us to the suggestion of doing in Croatia, which I am obviously biased towards because I am from Croatia but I also definitely think its good to have someone living in the country we choose. Being based here means I know more, got connections & am only a call or a few away from experts, seasoned entrepreneurs, the regulating institutions & the government itself.

Why Croatia

The Croatian blockchain association (UBIK) has a few members from regulating institutions & is on good terms with regulators. They’ve been organizing panels & sending suggestions to the national bank, financial regulation institution, ministry of the interior etc. - most of which have been accepted.

I haven’t checked but apparently a lot of crypto businesses previously based in Portugal or Estonia have been moving their headquarters to Croatia because of favorable regulations, low taxes & general ease of doing business.

Reasons for doing it in Croatia:

  • No taxes if no profit (meaning if all income goes towards covering expenses & there’s no extra)
  • 10% corporate tax on profit (compared to ~20% in the US, Portugal, Estonia & a lot of others)
  • Legal services cost ~1/10 of what they cost in eg. US
  • Accessbility & connections to experts & regulators

But I’m no lawyer nor any kind of expert on this sort of stuff, so don’t take my word for it.


Start a legal entity in Croatia & get it over with.
I’ve already talked to a lawyer with a law firm interested in doing this for us. I’ve known him since 2016, he’s a well known name on the Croatian crypto scene & the president of the Croatian blockchain association.

Their offer:

  • A 6-month contract for doing everything we need in terms of legalities
    • Analyzing tokenomics & the fundraise, coming up with a legal structure etc.
    • All the paperwork & bureaucracy associated with starting an LLC, around the token etc.
  • Unlimited number of advisory hours for any questions & legal support we might need

Their demand:

  • 1,600€/month + VAT (50% of which can be paid in Seeds)
  • A to-be-determined number of tokens earmarked for advisors

Questions & Alternative proposals?

I will leave this thread open for a week before putting it up for vote, so anybody can ask questions or offer alternative pathways for doing it (it seems we got consensus its needed, just no consensus on where).


Thank you, @peth for getting the ball rolling on this very important initiative.

As we discussed in detail, during today’s Growth Align, this is a complicated, nebulous initiative that we should not rush. We agreed to get “second opinions” from more lawyers, in different jurisdictions, so we can come to a thoughtful decision.

I think that despite our assumption that we may decide to change MetaGame’s legal entity structure, as regulation continues to evolve, the structure that we choose today will inevitably come with its unique set of constraints, so we should be mindful about the choices we make today to try to minimize future surprises.

Here’s the evolving Dework board with action items: