A DAC (Distributed Autonomous Corporation) designed to use the pseudoanonymity, authentication, distributed nature and public transaction record of the blockchain to create irrevocable, cross-jurisdictional, highly agile, and financially profitable entities for democratizing the tax avoidance measures currently only available to the very rich.
Essentially, this is a pair of programs which operate companies. One (the “child” entity) is held by an LLC, and is available to essentially anyone with online access and a mainstream financial instrument of commerce (i.e., bank account, credit card, etc.). The second (or “parent”) entity holds per-transaction ownership of the first for purposes of aggregating and redistributing income via tax mitigation techniques. If at any point a parent entity ceases to be able to legally execute its services, ownership cedes to the child and the only potential risk is the latest transaction. Transaction size maximums are chosen by the child entity, and all transactions are public (and anonymized) via the blockchain.
The benefits of execution are both financial and reputational; being the first to do this will own the space – and the massive financial remuneration it would entail – but will also be a significant target as it displaces and forces significant changes on the part of any tax-collecting / dependent entity.
Why is this not crack-smoke? Anonymized, global transaction systems are coming, and existing geopolitical entities are currently unable to accept, or to stop, their operation. At the same time, business will be unable to ignore their utility. By forcing existing political entities to address the threat of DACs early we have the opportunity to set the dialogue of transnational commerce within a meritocratic and limited regulatory oversight context instead of a knee-jerk, combative one which will drive profits to black market and downregulated transaction centers.
More broadly, it’s an excellent opportunity to put a mark on world history by demonstrating how those entertaining online cryptocurrencies can seriously threaten world governments, and do it in a way that invites dialogue and lets us set an agenda. I.e., Tim Berners-Lee vs. Kim Dotcom.