1Hive LLC Operating Agreement.pdf
1Hive is structured like a virtual "hacker house" or incubator where people can benefit from a shared community, some common infrastructure and operational services, and collaborative virtual environment while working to spawn and iterate on various semi-independent projects.
In order to be included under the 1Hive umbrella, projects must adopt certain practices and be loosely related to the thematic and strategic goals of the broader 1Hive community.
1Hive LLC is structured as a Delaware Series LLC. This structure allows for the creation of "series" which can have their own operating agreements, ownership interests, assets, and liabilities. They can even open their own bank accounts, however, this can actually be quite cumbersome and may complicate operations significantly.
In practice, the structure provides us with a relatively low cost and low overhead way to ensure we have limited liability for the project as a whole, and a strong case for limited liability between projects so long as we operate in such a way as to maintain financial and operational separation between each series.
As pointed out in this article, maintaining this separation is actually made significantly easier if most if not all operations are conducted in a rigid, programatic manner (eg in an Aragon DAO). In our case we will try take advantage of this property, and will restrict the activities of series LLC to their respective Aragon organizations. This limitation will help ensure we can effectively maintain the proper compartmentalization while also ensuring we have a relatively consistent accounting system to ensure we can effectively audit and maintain proper book-keeping across all of our Series.
In the event that a series has a need to interact with a service provider, such as AWS, which can only accept fiat payments, the respective series would contract with "Master" 1Hive LLC, which would maintain a bank account and act as a proxy on behalf of the series.
The LLC which is registered with the State and makes the filing is generally referred to as the Master. It has the unique ability to spawn additional series, but otherwise operates like any other LLC or series. It also must be referenced by the registered name (eg 1Hive LLC), whereas related series entities will be referred to as 1Hive LLC, Dandelion PS
For our purposes this organization should be simple and focus specifically on the scope of proxy services (eg paying for AWS hosting on behalf of a series), legal, and accounting. It will initially be the only entity in the series that maintains a fiat bank account. Project Series or "Hives" will be compartmentalized in their respective Aragon orgs and be crypto only to simplify automation and reinforce rules around compartmentalization.
This org will contract with the other project orgs as a proxy when fiat connections are required: