Legal Structure

This document outlines the legal structure of Arthur Labs marketplaces, explaining how our platforms are organized and operated to support decentralized commerce.

Organizational Structure

Arthur Labs marketplaces operate under a multi-tiered structure designed to support decentralized commerce while maintaining necessary oversight:

1. Arthur Labs hosts the marketplace facilitation and development process of each Web3 Marketplace.

2. Partners moderate and run marketing efforts on behalf of the marketplace, handling announcements, procedures, operational control, recommendations for changes, and various other resources, collaborations, and efforts.

3. Clients act as sellers and purchasers, or small businesses and their customers. Small businesses operate in their own interest and use the platform to access a new range of clients.

4. Each marketplace runs on a dedicated blockchain using a dedicated cryptocurrency, with specifications tailored to specific needs.

Participant Roles

Arthur Labs

As the platform developer and maintainer, Arthur Labs is responsible for:

• Core technology development and maintenance
• Smart contract implementation and security
• System upgrades and technical improvements
• Integration support for marketplace participants
• Overall platform stability and performance

Marketplace Partners

Partners work with Arthur Labs and take responsibility for:

• Day-to-day marketplace operations
• Community engagement and moderation
• Marketing and growth initiatives
• Business development and partnerships
• First-level dispute resolution
• Implementation of marketplace policies

Marketplace Clients

Clients (both buyers and sellers) participate by:

• Creating and managing marketplace listings
• Completing transactions through platform smart contracts
• Building reputation through successful transactions
• Providing feedback to improve the ecosystem
• Following marketplace rules and best practices

Governance Model

Arthur Labs marketplaces implement progressive decentralization through:

1. Initial Centralized Management: Technical development and initial governance handled by Arthur Labs and marketplace partners.

2. Transition to DAO Structure: Revenue received on behalf of Arthur Labs goes into a treasury and DAO governance, in which token holders have voting rights and receive earning rewards based on their tokens.

3. Community Governance: Token holders can vote on:

   • Platform upgrades and features
   • Fee structures and distribution
   • Dispute resolution policies
   • Platform partnerships and integrations

Revenue Structure

The revenue model for Arthur Labs marketplaces includes:

1. Transaction Fees: A small percentage of each successful transaction

2. Optional Service Fees: Additional charges for premium features such as:

   • Featured listings
   • Enhanced verification
   • Dispute insurance
   • Advanced analytics

3. Distribution Structure:

   • A portion of revenue supports ongoing platform development
   • A portion goes to marketplace partners for operational costs
   • A portion enters the DAO treasury for community distribution
   • Token holders receive rewards proportional to their stake

This model allows for sustainable platform growth while rewarding all participants in the ecosystem.