The Wyoming Committee on Blockchain, Financial Technology and Digital Innovation Technology, United States, presented a bill for decentralized autonomous organizations (DAO) to be officially incorporated into the State.
The document, which must be approved by the Wyoming legislature, is intended to allow DAOs to be recognized by state authorities . In this way, they would be authorized to be incorporated as limited liability companies (LLC), being recognized in the official records as DAO, LAO or DAO LLC.
On January 12 of this year the Bill No. 38 in the Wyoming Senate that, in short, seeks to provide for the formation and management of decentralized autonomous organizations , provide definitions and establish a possible date of entry in force.
However, it appears that a draft of the regulation has been available to the public since December last year. The public record indicates that the legislative proposal was sent to the corresponding Committee on February 3, 2021.
The document, which contains 16 pages, includes on page 8 a chapter on organizational issues that define the characteristics of the organizational structure that registered DAOs must have. It includes the rights of participants and the ways in which changes should be made to smart contracts. In the event of a smart contract reform, the articles of organization would have to be modified or updated.
As to the operation agreements of a contract, according to the text on page 11, if they do not foresee another matter described above at the legal level, the operation of a DAO can be complemented with an operation agreement.
The project also addresses the administration of a DAO. The management of a decentralized autonomous organization is conferred on its members, unless another form of management is provided for in articles of organization or operation.
Finally, page 16, dedicated to miscellaneous, explains , among other things, that the articles and agreements of a DAO can be adjusted if they conflict. According to this, the smart contract itself may advance any provision to resolve this situation, even if it goes against these articles.
True Thus, the proposed bill serves, according to its authors, as a bridge between real-world commercial operations and the general spirit of DAOs , which strive to decentralize the bodies control and distribute them to participating stakeholders.
What are DAOs
A DAO is a organization aimed at through rules encoded by smart contracts . The statutes of the decentralized organization and its governance rules are written in the code.
For a DAO to materialize, smart contracts are needed, that is, the code that executes itself in a distributed network that uses consensus technology, which will ensure compliance with the conditions. This seeks to reduce time and significant costs.
The number of DAO and related innovations grows
There are a growing number of DAOs and innovations that enable their development. For example, the startup Aragon, created software that makes it easier for these decentralized organizations to connect to the main Ethereum network.
As CriptoNoticias published, with Alba, one of the updates to this software, more Out of 15,000 DAOs that were created on the Aragon platform and used to run on the testnet, they had the possibility of reaching the Ethereum mainnet “with real implications”.