The state created a statue dubbed DUNA\u2013the Decentralized Unincorporated Nonprofit Association. <\/p>\n
A landmark bill passed in Wyoming, expanding the already friendly legal waters for decentralized autonomous organizations (DAOs) in the state.<\/p>\n
The new bill, which was approved on March 7, will provide a legal framework for DAOs to enter into legal contracts with third parties, allow them to pay taxes, and provide the organizations with limited liability\u2013a term that offers protection for shareholders and stakeholders.<\/p>\n
The act will go into effect on June 1.<\/p>\n
Decentralized autonomous organizations are meant to coordinate global, digital communities around a common project or goal. They often use web3 tools, including token-based governance and smart contracts to inscribe rules and execute decisions. <\/p>\n
<\/p>\n
Experts across the industry are lauding the DUNA act.<\/p>\n
Connor Spelliscy, executive director of the DAO Research Collective<\/a> told The Defiant they are \u201chuge fans\u201d of DUNA, as it represents a major step forward in providing DAO founding teams with clear direction legal compliance.<\/p>\n He signaled that \u201cone of the biggest, if not the biggest,\u201d hurdles for blockchain founders is a lack of legal clarity, and DUNA provides a much-needed template moving forward.<\/p>\n His views echoed those of Preston Byrne, legal counsel for Brown Rudnick law firm, who analyzed the DUNA act. Drafters get \u201ctwo thumbs up<\/a>\u201d by writing a bill much more closely aligned to crypto-native applications, he said.<\/p>\n Wyoming has been on a mission to become the \u201cDelaware of Digital Assets<\/a>.\u201d<\/p>\n <\/p>\n Start for free<\/a><\/div>\n <\/p>\n With that mission in mind, in April, 2021, Governor Mark Gordon\u2013the same person that enacted last week\u2019s DUNA act\u2013inked a bill that would legally address DAOs\u2019 situation in the state.<\/p>\n SF38, as that initiative was labeled, addressed concerns around limited liability, a concept that gets a bit murky when it comes to DAOs, given their decentralized nature.<\/p>\n Limited liability companies (LLCs) act as a hybrid that marries the pass-through taxation of a partnership or sole proprietorship (i.e. they don\u2019t pay corporate tax) with the limited liability of a corporation (i.e. when a business fails, personal assets of the owner of the organization are protected).<\/p>\n That legislation limited the individual liability and specified whether the code or the paperwork filed with the state would take precedence, creating procedural clarity for projects.<\/p>\n Byrne recognized<\/a> on March 8 he was \u201cnot a fan\u201d of Wyoming\u2019s first attempt at passing a DAO<\/a> law.<\/p>\n The issue, said Byrne, with Wyoming\u2019s earlier law is that it was \u201cbasically a rebadged member-managed LLC.\u201d Last week\u2019s DUNA \u201clooks like\u201d it fixed all that by introducing a few new concepts.<\/p>\n New concepts include better definitions around how the law handles smart-contract governance mechanisms, and helping confer membership through the sale of tokens, among others.<\/p>\n Byrne said he never thought he\u2019d see a government enact a law of this sort during his lifetime, claiming the DUNA drafters are quite familiar with code problems the smart contract community has been dealing with since the 1990s.<\/p>\n Spelliscy, on the other hand, is cautiously celebrating. \u201cLike other frameworks that have been developed in the space, this isn\u2019t a solution for everyone,\u201d he said, adding that the industry will still require further legal clarity at a federal level.<\/p>\n Still, Byrne urged crypto advocates to enjoy the moment.<\/p>\n \u201cWe lawyers should celebrate nonetheless, for two reasons \u2013 (a) if this catches on, it\u2019ll generate gigatons of corporate legal work in crypto and (b) there is nothing more exciting than the creation of truly new law,\u201d wrote Byrne.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" The state created a statue dubbed DUNA\u2013the Decentralized Unincorporated Nonprofit Association. A landmark bill passed in Wyoming, expanding the already friendly legal waters for decentralized autonomous organizations (DAOs) in the state. The new bill, which was approved on March 7, will provide a legal framework for DAOs to enter into legal contracts with third parties, […]<\/p>\n","protected":false},"author":2,"featured_media":263163,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-263162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/263162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=263162"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/263162\/revisions"}],"predecessor-version":[{"id":263168,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/263162\/revisions\/263168"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/263163"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=263162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=263162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=263162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Wyoming\u2019s First Attempt<\/h2>\n
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Two Thumbs Up<\/h2>\n