Wyoming became the first US state to officially recognize a Decentralized Autonomous Organization (DAO), its latest step to becoming the country’s most crypto-friendly place to live.
Wyoming lawmakers voted in March to pass a bill allowing DAOs to be officially registered in the state. The law affords these entities—which are governed by smart contracts and dispense with the hierarchical control structure seen in traditional companies—the same rights as a limited liability company. The bill came into effect on July 1, 2021.
This means that DAOs that register in the state of Wyoming are legally recognized as business entities in the United States and therefore receive the same legal protections as an LLC.
The legislation makes it easier and cheaper to set up a DAO and gives legitimacy to many cryptocurrency projects. It enables DAOs to set up as limited liability companies (LLCs) pursuant to certain conditions—a revolutionary concept in a legal world where every organization is deemed to be managed by at least one individual.
DAOs are an effective and safe way to work with like-minded folks around the globe.
Wikipedia defines DAO (Decentralized Autonomous Organization) as an organization represented by rules encoded as a transparent computer program, controlled by the organization members, and not influenced by a central government. As the rules are embedded into the code, no managers are needed, thus removing any bureaucracy or hierarchy hurdles.
One of the major features of digital currencies is that they are decentralized. This means they are not controlled by a single institution like a government or central bank, but instead are divided among a variety of computers, networks, and nodes.
In many cases, virtual currencies make use of this decentralized status to attain levels of privacy and security that are typically unavailable to standard currencies and their transactions.
The DAO launched in late April 2016 thanks to a month-long crowd sale of tokens that raised more than $150 million in funds. At the time, the launch was the largest crowdfunding fundraising campaign of all time.
DAOs are for facilitating human cooperation via collective ownership.
Whether referring to a group of people using DAO software, or the software itself, the purpose of the DAO is to facilitate coordination. The main point is the organization and keeping that group of humans moving toward a goal.
DAO software works in service of this goal, and any group using the software is using it to reduce coordination failure. And DAO software is really good at reducing coordination failure.
DAOs are so good at doing this because they allow for collective ownership over the organization and decision-making that was previously very difficult to maintain at scale. This collective mindset can have a huge impact on everything from a club, to a corporation, and DAO software can help cement it.
Smart contracts are extremely useful for automating transactional processes, and for reducing the input that humans must supply for relatively simple tasks.
Any business can benefit from a model with DAO-like ambitions.
A DAO expands upon this example by automating all processes, not just shipping or invoicing, and it does so by stringing together multiple smart contracts in a complex web of ‘if, then’ statements. The final goal is an organization that requires no human input whatsoever and can function well and makes thoughtful changes to its structure without prompting.
BLOCKS is the first-ever Wyoming DAO LLC.
BLOCKS has received the world's first Wyoming DAO LLC designation to roll this out in the United States and global markets.
The BLOCKS Network provides the infrastructure for decentralized solutions and automation around industry-agnostic blockchain solution building.
BLOCKS is committed to creating the optimal DAO infrastructure to minimize barriers for entry across non-traditional blockchain prospects, such as liability and compliance/regulatory exposure, which is why the BLOCKS DAO LLC has worked so closely with Wyoming lawmakers to ensure that every step was taken to formation to be optimally complaint.
The BLOCKS Network provides a simple mobile app, web portal, and enterprise toolkits for customers, corporations and governments to use, tokenize, and build upon, blockchain technology at a more globally advanced scale in the mainstream mid-markets.
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