0x71558ae2…779csent to0xcf2f348c…b49a·#22,868,343·view on Etherscan
@0x2117...E42a
1. If a multisig is receiving a grant, does everyone on the multisig need to complete KYC?
No, not necessarily. If the funds are being distributed as compensation to multiple entities, each of those entities must complete KYC/KYB. For any portion of the funds allocated to project expenses, at least one entity must complete KYC/KYB to claim and manage those funds.
2. Are there plans to integrate an onchain KYCComplete flag or similar mechanism? Otherwise, wouldn't onchain actions make the KYC process moot since funds could be distributed regardless?
Yes, this was actually implemented into the Data Contract in the Proposal 747 upgrade. However, no governance clients currently support or display this information, so it hasn't been used for signaling in practice.
This observation is valid, the KYC process today happens entirely offchain, and admins have no ability to block onchain fund transfers. We collect KYC to ensure the DAO isn't liable for taxes on distributed funds, particularly when recipients are in the US or receiving larger grants. If a recipient were to receive funds and then refuse to complete KYC, there's currently no mechanism to prevent that, though this scenario hasn't occurred so far.
Adding a true compliance hold on distributions would require smart contract upgrades and audits. For now, we've avoided that complexity to keep our process lean, but it's something we'll continue to evaluate as time goes on.
> Some random thoughts I shared yesterday on Lils call:
> - to add to FAQ: If a multisig only one person submits KYC are all parties?
>
> Are we updating the smart contracts to support KYC Complete = Boolean? Or else the onchain actions would make the KYC moot as it would get executed, funds out the door and what would be the point of KYC at that point. If we have that variable/gate or something similar, then all frontends could support this relatively quickly. Not sure if we need another approval post gate, I leave that to your discretion. As someone who has implemented P2P process at multiple orgs, holler at your boy if you need anything.