20. 🛡️ Regulatory Compliance & Legal Framework
Conneth is designed to be future-proof — built for global scalability, legal clarity, and investor confidence. While preserving decentralization and anonymity, we enforce robust legal boundaries through technology and transparent governance.
🏛️ Legal Entity & Foundation Structure
Conneth DAO governs all protocol-level decisions via on-chain voting.
A non-profit Conneth Foundation will be established in a crypto-forward jurisdiction (e.g. Cayman Islands, Switzerland, or Singapore) to manage:
Legal representation
Treasury oversight
Smart contract audits
Exchange listings
DAO multisig wallets and foundation oversight create a dual-layer security system for the community.
🔐 DAO Multisig Structure
All critical actions (e.g. token burns, contract upgrades, treasury disbursements) require multisig approval from:
Verified DAO community reps
Foundation executives
Third-party legal auditor (optional)
⚖️ Global Regulatory Alignment
Conneth is being developed with awareness of the most important global regulations:
MiCA (EU)
Utility-token classification, decentralized governance, no financial guarantees
SEC (US)
No profit promises, decentralized issuance, utility-first token model
FATF Travel Rule
No custodial wallets, no third-party token custody
KYC/AML
Optional for advertisers; regular users rely on on-chain PoC identity layer
✅ Utility Token Compliance
Conneth’s native token $CONN meets common utility token guidelines:
Used to access services: VPN, communication, storage
Not a security: No guaranteed returns or dividend-like mechanics
Deflationary logic: Token burns, emissions, usage-based value, not speculation
DAO Governance: Decisions made by community, not central team
👨👩👧👦 User Protection & Legal Safeguards
Conneth prioritizes safety, especially across jurisdictions:
No KYC for users, but optional KYC for business accounts and advertisers
Ad protection rules: No illegal, exploitative, or adult content allowed
Report-to-earn model: Harmful or abusive content can be flagged by users and DAO moderators — earn trust rewards for protecting the ecosystem
Parental Control logic: Available in front-end dApp layer (age flag + filter)
💼 For Investors
Audit-ready contracts: All smart contracts will be verified and publicly auditable
Legal disclosures: GitBook will include disclaimers for all stakeholders
Listing-ready structure: Tokenomics and contract logic are exchange-compliant
📝 Required Disclaimers (To Include in Docs)
“Conneth is not a registered financial product or security in any jurisdiction.”
“Participants are responsible for complying with local tax and crypto laws.”
“Conneth Foundation is not liable for third-party misuse of the protocol.”
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