Fun

Wyoming passes law granting DAOs legal status

News Feed - 2024-03-09 06:03:54

Ana Paula Pereira2 hours agoWyoming passes law granting DAOs legal statusThe new regulation enables decentralized autonomous organizations to establish contracts with third parties, open bank accounts, and pay taxes, along with providing liability protection to its members.726 Total views20 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksWyoming Governor Mark Gordon has signed into law a bill establishing a legal framework for the formation and management of decentralized autonomous organizations (DAOs). 


The bill was sponsored by the legislature’s special committee on blockchain, financial technology and digital innovation, and introduces a legal status for decentralized unincorporated nonprofit associations (DUNAs) based in the state.This is huge news for DAOs.

Registering as a DUNA legal entity will enable DAOs to engage in legal contracts with other entities and provide legal protection to individual DAO members. Other legal entities available to DAOs fall short on these metrics.

Learn more from… https://t.co/j16Zr3xkw1— Ross Shuel | shuel.eth (@0xShuel) March 8, 2024


The document enacted on March 7 outlines the requirements for forming a DUNA, covers the roles of smart contracts, and offers provisions over the legal responsibilities of the association and its members. According to the new law, a DUNA is a separate legal entity from its members, which means that the DAO itself can be held liable without implicating its individual members. “A person is not liable for a breach of a decentralized unincorporated nonprofit association’s contract merely because the person is a member, administrator, authorized to participate in the management of the affairs of the nonprofit association or considered as a member by the nonprofit association.”


A DAO is an entity with no central leadership. The decision-making process is bottom-up, with a community governed by a set of rules enforced by a blockchain. Giving a DAO legal existence enables a decentralized entity to establish contracts with third parties, open bank accounts, pay taxes and meet informational reporting requirements.Nonprofit Status


In an analysis on March 8, venture capital firm a16zcrypto asserted that there is a “fundamental misunderstanding of the “nonprofit” designation provided by the new law.


According to Miles Jennings, a16z’s general counsel, and David Kerr, principal at Cowrie LLC, a Wyoming-based DAO is not prohibited from engaging in for-profit activities.“Under Wyoming law, both the UNA and the DUNA are able to engage in for-profit activities. This would include the operation of a decentralized exchange protocol, a decentralized social media protocol, you name it.”


DAOs are also allowed to pay compensation to their members, including in exchange for participation in the governance process, reads the analysis. “Wyoming’s approach supports the web3 ethos, while still enabling cash flows to digital asset holders. This is a significant breakthrough.”


Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines# Blockchain# Law# Business# DAO# United StatesAdd reactionAdd reaction

News Feed

Crypto Exchange Coinbase Files Amicus Brief to Support Ripple in SEC Lawsuit Over XRP
Crypto Exchange Coinbase Files Amicus Brief to Support Ripple in SEC Lawsuit Over XRP Cryptocurrency exchange Coinbase has filed an amicus brief in support of Ripple Labs in the U.
Felix Capital Raises $600 Million to Grow Web3 Exposure
Felix Capital Raises $600 Million to Grow Web3 Exposure Felix Capital, a London-based VC company, has raised $600 million in its fourth fundraising round, this being its biggest ye
Ethereum Breaks Higher With Conviction: No Signs Of A Breakdown Yet
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
SUI About To Break ATH Again – Can Bulls Target $4.20 This Week?
Este artículo también está disponible en español. SUI trades at crucial supply levels, sparking intense speculation among traders and analysts about its next move. After
US Treasury Unveils Stifling Crypto Wallet Regulation — Experts Break Down the Rules
US Treasury Unveils Stifling Crypto Wallet Regulation — Experts Break Down the Rules The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Tr
Cointelegraph Innovation Circle9 hours ago9 key steps for ensuring compliance with incoming MiCA regulationsCrypto companies operating in the EU must begin work now to comply with MiCA and assess how it might affect thei
Crypto Owners in Serbia Reach 200,000 as Country Regulates Digital Assets
Crypto Owners in Serbia Reach 200,000 as Country Regulates Digital Assets The number of cryptocurrency holders in Serbia has climbed to around 200,000 with interest in cryptocurren
Elliptic Identifies ‘Several Hundred Thousand Crypto Addresses’ Tied to Russia-Based Sanctioned Actors
Elliptic Identifies "Several Hundred Thousand Crypto Addresses" Tied to Russia-Based Sanctioned Actors As the Russia-Ukraine conflict continues, blockchain surveillance companies h
Tesla CEO Elon Musk Officially Terminates $44 Billion Twitter Deal — Twitter Threatens Lawsuit
Tesla CEO Elon Musk Officially Terminates $44 Billion Twitter Deal — Twitter Threatens Lawsuit Tesla CEO Elon Musk has formally informed Twitter that he is terminating his $44 bi
African Hip Hop Artist Davido ‘Thinking of Starting a Bitcoin Trading Company’
African Hip Hop Artist Davido "Thinking of Starting a Bitcoin Trading Company" Popular Nigerian hip hop artist Davido has sparked off a buzz about crypto assets
Stellar (XLM) Chart Signals Major Rally —Is A 330% Surge Coming?
Este artículo también está disponible en español. The Stellar (XLM) market has registered a price boost in the past day gaining by 10.77% according todata from CoinMarket
Brayden Lindrea4 hours agoAI chatbots are illegally ripping off copyrighted news, says media groupAI developers are taking revenue, data and users away from news publications by building competing products, the News Medi