🛸The Mothership DAO

The Mothership is a community of Gray Boys, collecting NFTs for use with the "Proxy Ownership" technology.

Enter The Mothership:

"The Mothership" is a term we Gray Boys use to describe our community of holders. While the Mothership DAO is not a true DAO entity from a legal standpoint, the operating principals still apply.

How does the "DAO" operate?

Ownership of a 1 Gray Boy NFT = 1 vote in The Mothership DAO.

Members create proposals, using a combination of discord, and our snapshot.org page (https://snapshot.org/#/grayboys.eth). This system allows our community to act in a DAO-style governance acquiring, selling, trading, claiming, and minting NFTs from other projects.

By increasing the collection of NFTs held by The Mothership's community wallet (https://opensea.io/Gray-Boys-Community-Wallet), the community of Gray Boys gain more options for "Proxied Ownership".

Does The Mothership DAO provide liquidity to holders?

No. The purpose of the DAO-style structure is give the community of Gray Boy holders the power to manage the Community Wallet holdings, in order to bolster the utility of "Proxy Ownership".

How is the DAO funded?

The Gray Boys NFT project has 5% of creator royalties move into the DAO Community and DAO Tax Withholding wallets. We are a USA-based company, we are operating in a a completely legally-sound fashion, for the long-term success of the project. Unfortunately, this includes paying taxes on any income (eth & NFTs) that move into the DAO wallet.

DAO Community Wallet: https://etherscan.io/address/0x16DbCd202be906c36667258799155d48Fb6C9584

DAO Tax Withholdings Wallet: https://etherscan.io/address/0x13761D0616F06cb0EE0CBc6d0da16BB505de0C7C

What happens if an NFT or Token held by the DAO wallet goes down in value?

When Ether or an NFT first enters the DAO wallet, that is considered a taxable event. This means, whatever fair market value the asset had at the time of possession will be used to tax the asset. With this in mind, when an asset loses value AFTER it has been taxed as an income event, it is considered a "Capital Loss" event. Capital losses only offset "Capital Gains" so the tax deductions for a loss only provide tax relief against gains. What does this mean? This means that if our entire portfolio is at a net loss, it is basically sunk cost, because we don't have any "gains" to offset, therefore we end up paying tax on the original values, often resulting in a hefty tax bill.

Do the creators personally take the DAO or DAO Tax funds?

No, we execute the proposals made by the DAO, and we use the Tax Withholdings to pay the IRS (internal revenue system) the taxes owed for the income/trading of crypto. We put a TON of time making sure Gray Boys is a legally-sound business, so we can continue to operate for many years to come.