Oversimplicated is a Wyoming DAO LLC hedge fund. It is programmed by Henning Diedrich and managed by Hendrik Pisters. It is limited to a hundred members and not registered with the SEC.
A DAO is a decentralized, autonomous organization, meaning a business entity or a community governed by a program – a smart contract – that runs on a blockchain. A Wyoming DAO LLC is a legal person, registered as a company with the Wyoming Secretary of State.
The Oversimplicated funds are held in crypto currency by a smart contract residing on the blockchain. They are transferred to FXChoice every Monday to start trading. On Fridays, FXChoice transfers the funds back directly to the DAO's escrow. Thanks to the blockchain, there is no way they could go anywhere except pro rata to the members.
The Oversimplicated bylaws are written in Lexon, a special form of English that can be turned into a smart contract. The bylaws, are therefore the program that runs the decentralized autonomous organization on the blockchain.
This is a new form of computational law, which allows everyone to read what a smart contract does. In this case, the inner working of the DAO. Because they form a blockchain smart contract, the bylaws of Oversimplicated cannot be violated. Member votes and actions are executed perfectly, as described in the bylaws, with no human intervention.
Oversimplicated is a reference product of the Lexon Hub and shows off its innovative and crypto way to monetize open source by ways of smart contract-based micro fees. And, how a smart contract developer can build a brand for themselves at the Hub.
Henning Diedrich programmed this marvel and trusts that you will take a closer look before you conclude that this is all impossible.
Henning writes books about blockchain tech and served as director for blockchain for BCG / DV. He was the lead architect of IBM's Hyperledger Fabric and Anglo American's Diamond Blockchain, TRACR.
He advised the European Commission, the Singapore SWF Temasek and the Wyoming legislature's blockchain committee.
Hendrik Pisters is the man who is definitely too young for his job but that’s why he trades for Oversimplicated and not for a vampire squid. He also genuinely loves earning you money.
The DAO is programmed so you don't have to take his word for it.
Martin Zöpel is the human who listens to your questions. He also confirms that you are not a machine. It’s not fair. But Oversimplicated is to know its customers and they have to be natural or legal persons.
These is the complete and auto-executing operational agreement of Oversimplicated. CHARTA of OVERSIMPLICATION DAO LLC. REVISION: DRAFT 2 – 11 June 21 AUTHOR: H. Diedrich LICENSE: Lexon Hub GENERAL TERMS.
“Company” is the entity described in this charta. “Total Assets” is its blockchain escrow. “Incorporator” is a person. “Registered Agent” is a person. “Manager” is a person. “Drafter” is a person. “Drafter Rate” is an amount. “Reserve Escrow” is an account. “Initial Share Price” is an amount that is greater than zero. “Trading Account” is an account. “Active Trading” is a true or false. “Election in Progress” is a true or false. The Incorporator appoints the Manager, appoints the Registered Agent, certifies the Drafter, fixes the Drafter Rate, and fixes the Initial Share Price. CLAUSE: Share Price. The “Share Price” is: if the amount of Total Shares is zero or the amount of Total Assets is zero, then the Initial Share Price; otherwise, the amount of Total Assets divided by the amount of Total Shares. CLAUSE: Change Initial Share Price. The Manager or the Incorporator may change the Initial Share Price. CLAUSE: Dissolution. The Registered Agent may Wind Down the Company. The Manager or the Incorporator may, in case the Company is Depleted or Uncontrolled, then Wind Down the Company. CLAUSE: Depleted. “Depleted” is defined as: No Active Trading and the amount of Total Assets being zero. CLAUSE: Uncontrolled. “Uncontrolled” is defined as the amount of Total Shares being zero. CLAUSE: Wind Down. If Active Trading is not ongoing, then: Pay Out and Terminate all Members and afterwards terminate the Company; otherwise notify that “Wind down can’t be done during active trading.”. The Manager or the Incorporator may, if Active Trading is not ongoing the amount of Total Assets is zero or the amount of Total Shares is zero, Wind Down the Company. CLAUSE: Total Shares. “Total Shares” is defined as the sum of all Shares of all Members. CLAUSE: Start Trading. If there is no Election in Progress, the Manager may declare Active Trading, certify Total Assets and Pre-trade Total Assets as the amount in escrow, transfer the escrow to the Trading Account, and notify all members that “trading has started” with the certain amount of Total Assets. CLAUSE: Stop Trading. The Manager may declare Active Trading to be over, certify Trade Result as the amount in escrow minus Pre-trade Total Assets, Pay the Management Fee to the Manager, Pay the Draft Fee to the Drafter, Pay the Reserve to the Reserve Escrow, certify Total Assets as the amount in escrow, and notify all members that “trading has ended” with the certain amount of Total Assets. CLAUSE: Management Fee. “Management Fee” is: If the Trade Result is smaller than or equal to 5% of Pre-trade Total Assets, then zero; otherwise, 10% of the difference between Trade Result and 5% of Pre-trade Total Assets. CLAUSE: Draft Fee. “Draft Fee” is: If the Trade Result is smaller than or equal to 0, then zero; otherwise, 1% of the Trade Result. CLAUSE: Reserve. The “Reserve” is: If the Trade Result is smaller than or equal to 5% of Pre-trade Total Assets, then zero; otherwise, 40% of the difference between Trade Result and 5% of Pre-trade Total Assets. APPLICANT TERMS.
“Applicant” is a person. “Payment” is an amount that is not zero. “Application” is the process described by these terms. The Applicant pays a Payment into escrow. CLAUSE: Accept Application. If there is no Election in Progress, the Manager may Create a Membership for the Applicant based on the Payment and terminate this application. CLAUSE: Deny Application. If there is no Election in Progress, the Manager may return the Payment to the Applicant and terminate this Application. CLAUSE: Partial Acceptance. If there is no Election in Progress, the Manager may return a given amount to the Applicant, Create a Membership for the Applicant based on the remainder of the escrow, and terminate this application. MEMBER TERMS.
The “Membership” is described by these terms. “Member” is a person. “Payment” is an amount that is not zero. “Shares” is an amount. “Last Buy In” is a time. “Vote” is yes or no. “Voted” is yes or no. “Last Vote Was Lost” is yes or no. “Last Vote” is a time. “Emergency” is yes or no. “Start of the Emergency” is a time. The Member Receive Shares based on their Payment. CLAUSE: Receive Shares. The amount of Shares is increased by the given Amount divided by the Share Price. The amount of Total Assets is increased by the given Amount. The Last Buy In is fixed as the current time. CLAUSE: Apply for Top Up. The Member may pay an amount into escrow, And notify the Manager of the “Top up request.”. CLAUSE: Accept Top Up. The Manager may certify that the Member Receive Shares based on the escrow. CLAUSE: Deny Top Up. The Manager may return the escrow to the Applicant. CLAUSE: Pay Out and Terminate. Pay the Member Capital to the Member. Terminate this Membership. CLAUSE: Member Capital. “Member Capital” is defined as the Total Assets divided by Total Shares times the Member’s Shares. CLAUSE: Enable Voting. Declare that the Member has not Voted yet. CLAUSE: Vote. If there is an Election in Progress and the Member has not Voted yet, the Member may certify a Vote, certify the Last Vote as the current time, and with that, has Voted. CLAUSE: Leave. The Investor may if Eligible to Leave, then Pay Out and Terminate themselves. CLAUSE: Eligible to Leave. “Eligible to Leave” is defined as: the Last Vote Was Lost; or the Last Vote was more than three months ago; Or the Member has not Voted and the Last Buy In was more than three months ago. CLAUSE: Start Emergency Process. The Manager may declare Emergency and certify the Start of the Emergency at the current time. CLAUSE: Stop Emergency Process. The Member may certify that there is no Emergency, and the Start of the Emergency is void. CLAUSE: Finalize Emergency Process. The Manager may on a Saturday or Sunday, if there is no Active Trading and there is an Emergency and the Start of the Emergency was more than three months ago, then pay the Member Capital to a given Account and Terminate this Member. ELECTION TERMS.
“Candidate” is a person. “Voters” is a list of persons. “Ayes” is an amount. “Nays” is an amount. “Election” is the process described in these terms. “Win” is yes or no. “Loss” is yes or no. On a Saturday or Sunday, if there is no Election in Progress, any Member may appoint a Candidate, declare an Election in Progress, for all Members Enable Voting, and notify all members of the Election and the Candidate. CLAUSE: Conclude Election. On a Monday, any Member may, in case the Amount of Ayes is greater than the Amount of Nays, then appoint the Candidate as new Manager and certify Win; otherwise certify Loss; and afterwards in any case Mark Losers and terminate the Election. CLAUSE: Election Result. “Election Result” is defined as the amount of Ayes being greater than or equal to the amount of Nays.
THIS IS NEW SMART CONTRACT TECHNOLOGY. TECHNICAL AND OPERATIONAL FAILURE OR SUCCESSFUL ATTACKS CAN LEAD TO TOTAL LOSS OF INVESTMENTS.
However, because this is a legal DAO, members are not personally liable. That's the the point.
Yep. This company combines hardcore blockchain technology with the bleeding edge legislative innovation coming out of Wyoming. The Cowboy State has a successful history of creative lawmaking: they pioneered the LLC 50 years ago, copied by every single state in the US. Now they are taking it one step further, adding DAO blockchain powers on top of their LLC bill. That law is made for exactly what Oversimplicated is. And then the human-readable smart contract at the heart of this DAO turbo charges all of the above: the bylaws listed here, are both the legally binding operational agreement of the LLC AND the smart contract code of the DAO. The fun is tripled by the fact that Hendrik knows how to trade. This is all about making good money in a very safe way - one day.
A Decentralizes Autonomous Organization (DAO) is an entity that lives on a public blockchain: in the extreme, it is unstoppable, run entirely by smart contracts and operating on a budget of cryptocurrency to buy and sell any products or services or help administrating a community. Oversimplicated is special in that it is a regular legal person, therefore lawfully owns its assets and shields its investors from liability. This is not the case with most other DAOs, which prefer to operate in a grey zone.
A Limited Liability Company (LLC) is a legal person but not a taxable entity: it has the pass-through taxation of a partnership but limits liability for its investors and can own – and protect – assets. The LLC has become one of the prevalent business forms in the US. It is an invention by state of Wyoming, which likes to take on the federal government and show them.
Oversimplication uses a Language called Lexon to make its bylaws into a bullet-proof, incorruptible machine. The code given above is both the legally binding operational agreement that governs the business of Oversimplication as a matter of law, as well as the smart contract code that constitutes the DAO. Every administrative step that is described in the bylaws is performed on the blockchain, exactly as written. There is no way that a vote is counted wrongly or capital not paid to a member on request. Things will happen exactly as written. Lexon is 'controlled English': a subset of the rich English grammar and vocabulary that can be tought to a computer.