After consulting with legal, CityDAO has 2 paths forward to be compliant with securities law. The key thing to understand is an asset is a security if there are 1) expectations of profits that are 2) derived from the hard work of others.
How it works: One central CityDAO with a governance token. We prohibit payout to tokenholders and disable ERC-20 transfer function for the token.
Under this option, we can crowdfund purchases of land and assets from anyone without KYC.
How it works: There are two DAOs, a CityDAO Community DAO that holds a governance token that is transferrable. There are one (or many) investor DAOs that buy each property. Investor DAOs could be compensated with CityDAO tokens. Investors can be paid back or gifted tokens.