Legal and Compliance
The DeSciAi platform operates at the intersection of cutting-edge technology and decentralized science, necessitating a robust legal, compliance, and regulatory framework to ensure global operability, transparency, and trust.
KYC, AML, and Compliance Measures
Know Your Customer (KYC): To ensure accountability, transparency, and regulatory compliance, the DeSciAi platform mandates comprehensive KYC processes for:
Researchers: Verifying the identity and authenticity of research teams submitting proposals.
Funders: Validating individuals or entities participating in Initial Research Offerings (IROs).
Actors: SMEs, delegates, and AI-agent developers who interact with platform jobs.
Anti-Money Laundering (AML):
DeSciAi takes AML measures seriously and includes:
Whitelisting and Contribution Caps: Ensuring regulated participation.
Integration with AML Tools: Leveraging third-party systems for enhanced oversight and compliance.
Privacy and Security:
The whole KYC process and personal data collected during KYC processes is securely managed using industry leading service providers.
On-chain Jurisdictional Contracts and IP Clauses
On-chain Contract Integration: All agreements, including funding terms, IP ownership, and milestone requirements, are formalized via on-chain contracts. These ensure:
Tamper-proof records of agreements.
Automatic enforcement of terms, such as fund disbursement upon milestone approval.
Transparent dispute resolution protocols.
Jurisdiction-Specific Clauses: Recognizing global variations in legal frameworks, researchers can customize jurisdictional clauses within their proposals. These clauses address:
Intellectual Property (IP) Ownership: Clearly defining IP rights (e.g., 20% retained by researchers, 80% tokenized).
Tax Obligations: Outlining local tax compliance responsibilities.
Liabilities: Stipulating terms for failed milestones or breach of contract.
Role of the Human Entity Committee (HEC)
HEC Overview: The HEC serves as a bridge between the on-chain governance of DAOs and the off-chain legal realities in various jurisdictions. Comprising a subset of DAO members, HECs provide:
Legal Representation: Acting on behalf of token holders in local courts if necessary.
Contract Enforcement: Ensuring compliance with jurisdictional requirements.
Dispute Resolution: Mediating disputes between researchers and token holders.
HEC Accountability:
Decisions made by the HEC are subject to DAO approval to maintain transparency and trust.
HEC members are incentivized via shares from project or platform revenue, proportional to their contributions.
Adapting to Evolving Regulatory Landscapes
Proactive Monitoring: DeSciAi’s governance structure includes a compliance team responsible for:
Tracking global regulatory developments in blockchain, DeFi, and decentralized research funding.
Advising the DAO on necessary updates to platform policies and smart contract templates.
Flexible DAO Governance:
The DAO can vote to update compliance policies as regulations evolve, ensuring continued alignment with legal requirements.
AI agents dedicated to compliance assist in monitoring and proposing updates to the DAO.
Regulatory Sandboxes:
DeSciAi will partner with regulatory sandboxes to test innovative features in controlled environments.
These partnerships ensure that novel mechanisms, such as tokenization of IP, meet emerging regulatory standards.
Intellectual Property and Commercialization Framework
IP Tokenization:
Projects tokenize their IP rights as Project Research Tokens (PRTs), ensuring clear ownership and revenue-sharing structures.
On-chain contracts enforce the distribution of royalties and commercialization revenues between researchers and token holders.
IP Disputes:
In case of IP ownership disputes, the HEC mediates based on predefined clauses in the on-chain contract.
Dispute outcomes are immutably recorded on-chain, ensuring transparency.
Licensing and Commercialization:
Token holders can collectively decide on licensing agreements via DAO voting.
Researchers retain a fixed share of commercialization profits, incentivizing high-quality research outputs.
Transparency and Trust Mechanisms
Immutable On-chain Records: All transactions, funding disbursements, milestone approvals, and DAO votes are recorded on-chain, ensuring:
Transparency for all stakeholders.
Easy auditability by internal or external entities.
Fraud Detection:
AI agents continuously monitor for anomalies in milestone submissions, fund movements, and IP claims.
Immediate alerts are issued to the DAO and HEC for further investigation.
Risk Mitigation Strategies
Platform Risks:
Smart contracts undergo regular audits by reputable firms.
Bug bounty programs encourage community-driven identification of vulnerabilities.
Project Risks:
Milestone-based funding reduces exposure to failed projects.
Tokenization of ownership ensures partial value recovery for funders in case of project failure.
Legal Risks:
Multijurisdictional HECs provide localized legal expertise to minimize regulatory risks.
Continuous monitoring and adaptation to international regulations reduce compliance risks.
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