Record-Keeping & Audit Policy

Internset DAO LLC ("we," "us," or "our") is committed to maintaining accurate, transparent, and verifiable records of its activities, financial transactions, and governance decisions. This Record-Keeping & Audit Policy outlines the processes for managing records, ensuring data integrity, and enabling periodic audits in compliance with relevant legal, regulatory, and operational standards.

1. Purpose

The purpose of this policy is to:

1. Ensure accurate and verifiable records of DAO-related transactions, decisions, and governance processes.
2. Enable regulatory compliance through systematic record-keeping.
3. Support transparency, internal audits, and external inspections.
4. Protect the DAO’s legal, operational, and financial interests.

2. Scope

This policy applies to:

1. Financial Records: Treasury transactions, expenses, token distributions, staking rewards, and fund allocations.
2. Governance Records: DAO proposals, voting results, resolutions, and governance decisions.
3. Compliance Records: KYC/AML compliance logs, regulatory filings, and official communications.
4. Audit Records: Internal and external audit reports, blockchain transaction logs, and financial statements.

3. Record-Keeping Standards

Internset DAO maintains a comprehensive record-keeping system that follows these principles:

A. Accuracy & Integrity

1. Records must be accurate, complete, and up-to-date.
2. Any changes or updates must be timestamped and documented.

B. Transparency & Accessibility

1. Relevant financial and governance records are publicly available where applicable (e.g., treasury reports, governance proposals).
2. Records are stored securely and accessed only by authorized personnel if sensitive.

C. Audit-Readiness

1. Periodic reviews ensure compliance with this policy.
2. Records must be accessible for internal and external audits.

D. Security & Confidentiality

1. Sensitive records are encrypted and stored securely.
2. Access controls ensure that only authorized personnel can access sensitive data.

4. Record Types and Retention Periods

5. Record Storage & Access Control

A. Storage Standards:

1. Cloud-based & Blockchain Records: Key financial and governance records are stored on-chain where possible to ensure transparency and immutability.
2. Secure Off-Chain Storage: Regulatory filings, legal records, and sensitive data are securely stored off-chain with backup protocols in place.

B. Access Control:

1. Public Records: DAO proposals, financial summaries, and voting results are publicly accessible.
2. Restricted Records: Only authorized personnel with appropriate access levels may view sensitive records like compliance filings, KYC/AML logs, and legal contracts.

6. Audit Policy

To ensure the integrity and accuracy of records, Internset DAO conducts internal and external audits as follows:

A. Internal Audits:

1. Conducted quarterly or as needed to review financial transactions, DAO governance records, and compliance logs.
2. Performed by designated DAO committees or authorized internal auditors.

B. External Audits:

1. Conducted annually or upon request by regulatory authorities or third-party auditing firms.
2. Covers financial statements, treasury balances, and token distributions.

C. Blockchain-Based Audits:

1. On-chain transparency audits using blockchain explorers for DAO activities and transactions.
2. Audit reports may be published for public access when legally appropriate.

7. Compliance & Legal Obligations

Internset DAO ensures that all record-keeping and audit activities comply with:

1. Relevant Legal Standards: Including financial regulations and data protection laws such as:
2. GDPR (General Data Protection Regulation) – For European Union users.
3. CCPA (California Consumer Privacy Act) – For California-based users.
4. Wyoming DAO Legislation (WY Statutes § 17-31-101) – Governing decentralized autonomous organizations in Wyoming, USA.
5. U.S. Federal & State Data Protection Laws – As applicable to U.S.-based platforms.
6. DAO-Specific Frameworks: Token issuance, treasury management, and governance decisions based on DAO-approved protocols.
7. Regulatory Authorities’ Requests: Responding promptly to official requests for records or audit reports as required by U.S. or international legal bodies.

8. Policy Updates

We reserve the right to update this policy periodically to reflect changes in legal requirements, operational practices, and audit procedures. Updated versions will be published on our official websites, with the revised effective date clearly indicated.