The State of Wyoming has legally recognised the American CryptoFed DAO, making it the first decentralised autonomous organisation (DAO) to receive legal recognition in the US.
Such recognition comes hot on the heels of Wyoming becoming the first state to pass landmark legislation that defines DAO’s as a kind of limited liability company (LLC).
Speaking on the decision, Wyoming’s Secretary of State, Edward Buchanan, reflected on the state’s history of being at the forefront of business innovation.
He said: “Wyoming has a reputation for being on the leading edge of business technology, beginning in 1977 with the recognition of LLCs. We are proud to continue this innovation by offering legal protections to Decentralized Autonomous Organizations.”
With its newfound legal recognition, The American CryptoFed DAO is a step closer to realising its goal of creating a monetary system with no inflation, deflation or transaction costs. The company’s CEO, Marian Orr, hopes this will reduce costs for cities and their constituents, increasing municipality revenues without the need to raise taxes.
“With this DAO law, Wyoming is [now] arguably the top blockchain jurisdiction in the world. It makes creating a true digital currency with mass acceptance possible,” Orr said.
As a decentralised system, the rules of governance for the American CryptoFed DAO are set by token holders and stored transparently on a designate blockchain. This means that, over time, Orr’s role as CEO will dissipate and the governance of the system will be passed on to token holders.
The Merchant Advisory Group (MAG), which represents 165 of the largest merchants in the US, issued a statement in support of the filing.
MAG CEO John Drechny said: “The Merchant Advisory Group has always advocated for more competition in the payment acceptance space. With the announcement of the American CryptoFed becoming the first DAO in Wyoming, we can see a path in which merchants will have more choices for payment acceptance.
He added: “Wyoming is leading the way to create legal certainty in the crypto space, and the American CryptoFed DAO is focused on delivering a fee free payment choice for merchants. We look forward to what the future brings as more competition through innovation is brought to the payment acceptance market.”
Want to learn more from executives at the heart of this space? The Blockchain IoT Solutions Congress, on November 2 2021, will explore the convergence of these two technologies and the use cases and industries that will benefit.
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Credit: Blockchain News