diff --git a/contracts/ProxyOwnedByDao.sol b/contracts/ProxyOwnedByDao.sol
new file mode 100644
index 0000000..3b60022
--- /dev/null
+++ b/contracts/ProxyOwnedByDao.sol
@@ -0,0 +1,29 @@
+pragma solidity ^0.4.23;
+
+import "@thetta/core/contracts/DaoBase.sol";
+import "@thetta/core/contracts/DaoClient.sol";
+
+import "./Proxy.sol";
+
+contract ProxyOwnedByDAO is DaoClient {
+  Proxy public proxy;
+
+  bytes32 public constant TRANSFER_DELEGATION = keccak256("Proxy_TransferDelegation");
+  bytes32 public constant TRANSFER_OWNERSHIP = keccak256("Proxy_TransferOwnership");
+
+  constructor(DaoBase _daoBase, Proxy _proxy) DaoClient(_daoBase) {
+    // Please don't forget to call _proxy.transferOwnership() to this contract immediately 
+    // after ProxyOwnedByDAO_1 is instantiated
+    proxy = _proxy; 
+  }
+
+// These methods now require special custom permissions:
+  function DAO_transferDelegation(address _newDelegation) public isCanDo(TRANSFER_DELEGATION) {
+    proxy.transferDelegation(_newDelegation); 
+  }
+
+  function DAO_transferOwnership(address _newOwner) public isCanDo(TRANSFER_OWNERSHIP) {
+    proxy.transferOwnership(_newOwner);
+  }
+}
+
diff --git a/migrations/3_deploy_contracts_dao.js b/migrations/3_deploy_contracts_dao.js
new file mode 100644
index 0000000..a636eda
--- /dev/null
+++ b/migrations/3_deploy_contracts_dao.js
@@ -0,0 +1,7 @@
+var migrateLibs = require('@thetta/core/scripts/migrateLibs');
+
+module.exports = function (deployer, network, accounts) {
+     let additionalContracts = [ "./ProxyOwnedByDAO"];
+
+     return migrateLibs(artifacts, additionalContracts, deployer, network, accounts);
+};
diff --git a/package.json b/package.json
index f2cb22d..e20691d 100644
--- a/package.json
+++ b/package.json
@@ -12,14 +12,17 @@
     "babel-preset-stage-2": "^6.18.0",
     "babel-preset-stage-3": "^6.17.0",
     "babel-register": "^6.23.0",
-    "truffle-privatekey-provider": "0.0.6",
     "dotenv": "^5.0.1",
     "ganache-cli": "^6.0.3",
     "solium": "^1.1.2",
-    "truffle": "4.0.6"
+    "truffle": "^4.1.14",
+    "truffle-privatekey-provider": "0.0.6"
   },
   "dependencies": {
+    "@thetta/core": "^1.4.1",
     "bignumber.js": "^4.0.1",
+    "chai": "^4.2.0",
+    "chai-as-promised": "^7.1.1",
     "zeppelin-solidity": "^1.6.0"
   }
 }
diff --git a/test/icomalta_dao.js b/test/icomalta_dao.js
new file mode 100644
index 0000000..75a0ebc
--- /dev/null
+++ b/test/icomalta_dao.js
@@ -0,0 +1,104 @@
+const Proxy = artifacts.require('./Proxy.sol');
+const ProxyOwnedByDAO = artifacts.require('./ProxyOwnedByDAO.sol');
+const Controller = artifacts.require('./Controller.sol');
+
+const { assertRevert } = require('./helpers/assertThrow')
+
+// Thetta
+var DaoBase = artifacts.require('./DaoBase');
+var StdDaoToken = artifacts.require('./StdDaoToken');
+var DaoStorage = artifacts.require('./DaoStorage');
+
+contract('ProxyOwnedByDAO', (accounts) => {
+  let proxy;
+  let proxyDao;
+  let token;
+  let controller;
+
+  beforeEach(async () => {
+    proxy = await Proxy.new();
+
+    controller = await Controller.new();
+    token = Controller.at(proxy.address);
+  });
+
+  describe('proxy + proxyDAO with no permissions', async() => {
+    beforeEach(async () => {
+      // Create new proxyDao
+      let t = await StdDaoToken.new("StdToken","STDT",18, true, true, 1000000000);
+      let store = await DaoStorage.new([t.address]);
+      let daoBase = await DaoBase.new(store.address);
+      proxyDao = await ProxyOwnedByDAO.new(daoBase.address, proxy.address);
+      await t.transferOwnership(daoBase.address);
+      await store.transferOwnership(daoBase.address);
+
+      // finish initialization of DAOBase
+      await daoBase.renounceOwnership();
+
+      // initialize token contract
+      await token.initialize(controller.address, 400000000);
+
+      // transfer ownership to proxyDao
+      await proxy.transferOwnership(proxyDao.address);
+      assert.equal(await proxy.owner(), proxyDao.address);
+    });
+
+    it('should not allow to transfer ownership directly', async() => {
+      return assertRevert(async () => {
+        await proxy.transferOwnership(accounts[1]);
+      });
+      assert.notEqual(await proxy.owner(), accounts[1]);
+    });
+
+    it('should not allow to transfer ownership through the proxyDAO', async() => {
+      return assertRevert(async () => {
+        await proxyDao.DAO_transferOwnership(accounts[1]);
+      });
+      assert.notEqual(await proxy.owner(), accounts[1]);
+    });
+  });
+
+  describe('proxy + proxyDAO with permissions', async() => {
+    beforeEach(async () => {
+      // Create new proxyDao
+      let t = await StdDaoToken.new("StdToken","STDT",18, true, true, 1000000000);
+      let store = await DaoStorage.new([t.address]);
+      let daoBase = await DaoBase.new(store.address);
+      proxyDao = await ProxyOwnedByDAO.new(daoBase.address, proxy.address);
+      await t.transferOwnership(daoBase.address);
+      await store.transferOwnership(daoBase.address);
+
+      // set permissions
+      await daoBase.addGroupMember("Employees", accounts[0]);
+
+      const transferDelegationPerm = await proxyDao.TRANSFER_DELEGATION();
+      const transferOwnershipPerm = await proxyDao.TRANSFER_OWNERSHIP();
+      // NOTE: we can use votings here instead!
+      await daoBase.allowActionByAnyMemberOfGroup(transferDelegationPerm, "Employees");
+      await daoBase.allowActionByAnyMemberOfGroup(transferOwnershipPerm, "Employees");
+
+      // finish initialization of DAOBase
+      await daoBase.renounceOwnership();
+
+      // initialize token contract
+      await token.initialize(controller.address, 400000000);
+
+      // transfer ownership to proxyDao
+      await proxy.transferOwnership(proxyDao.address);
+      assert.equal(await proxy.owner(), proxyDao.address);
+    });
+
+    it('should not allow to transfer ownership directly', async() => {
+      return assertRevert(async () => {
+        await proxy.transferOwnership(accounts[1]);
+      });
+      assert.notEqual(await proxy.owner(), accounts[1]);
+    });
+
+    it('should allow to transfer ownership through the proxyDAO!', async() => {
+      await proxyDao.DAO_transferOwnership(accounts[1]);
+      assert.equal(await proxy.owner(), accounts[1]);
+    });
+  });
+
+});
diff --git a/truffle.js b/truffle.js
index 204e3e7..09c8212 100644
--- a/truffle.js
+++ b/truffle.js
@@ -9,7 +9,7 @@ module.exports = {
         host: "localhost",
 	        port: 8545,
 	        gasPrice: 10000000000,
-	        gas: 5000000,
+	        gas: 9000000,
 	        network_id: "*" // Match any network id
 	    },
 		kovan: {