Members, Membership Interests, Managing Members

Members and Membership Interests in an RMI DAO LLC

• A membership interest is a general term used to represent a quantifiable voting, governance, ownership, or financial right, depending on the type of entity you register (non-profit vs. for-profit).

• Where other corporate types might have "shareholders", "directors", "trusteers", "officers", or other names that can have similar meaning, an LLC (including DAO LLCs) has only "members", "managing members", or other titles as defined in the company's operating agreement.

Managing Members

• DAO LLCs are not required to have Managing Members. For the first time, with the DAO LLC, a legal entity is not required to have managers of any kind, but it’s up to you whether you want them.

• Managing Members get day-to-day management rights, signatory authority, etc. There are also some social expectations around what managers are, what they get to do, whether they are good, etc.

• Another thing to consider is whether you want your DAO LLC to “pass” as a traditional organization when doing KYB with other organizations. For example, if you're going to open a bank account or get a grant, and the bank says, “List your managers…” do you want to be able to say, “OK, sure!” or have to explain why you don’t have managers?