Wyoming legally recognizes the first DAO in the United States
The crypto-friendly state of Wyoming has approved the first legally recognized Decentralized Autonomous Organization (DAO) in the United States.
The US CryptoFed DAO received a notice from the Wyoming Secretary of State on July 1st recognizing it as a legal entity, according to an announcement made on July 4th.
Marian Orr, CEO of the American CryptoFed DAO, said:
“Wyoming is the leading digital asset authority in the United States and now with this DAO law, Wyoming is arguably the leading blockchain jurisdiction in the world. This means that the creation of a true digital currency with mass adoption is now possible. “
The Merchant Advisory Group (MAG), which represents the 165 largest merchants in the United States, has expressed its support for the filing. MAG CEO John Drechny said the group has always advocated more competition in the area of payment acceptance.
America’s CryptoFed DAO was founded on July 1, 2021 by mobile banking solutions provider mSHIFT.
Orr emphasized that the DAO’s native algorithmic stable token, Ducat, facilitates free transactions. Ducat is based on EOS and uses a delegated proof-of-stake (DPoS) consensus to achieve high-speed transactions at the expense of decentralization.
New tokens are issued through interest paid to Ducat holders and rewards are issued to the users of the network. Ducat’s premiums and interest rates are dynamically adjusted through machine learning, with Ducat intending to appreciate against the USD in line with the dollar’s level of inflation.
The DAO has also released its governance token, Locke, which is used to stabilize Ducat.
Governance tokens will be issued in accordance with the Token Safe Cloak Proposal 2.0 presented by SEC Commissioner Hester Peirce in April.
Connected: Wyoming passes law recognizing cryptocurrencies as money
Wyoming has been at the forefront of legal crypto regulation in the United States for the past few years, with state regulators working with Avanti Bank & Trust’s Caitlin Long to develop a regulatory framework for banks.
In September 2020, Kraken received the Wyoming Bank Charter, making it the first crypto company to be licensed as a bank in the United States. Avanti next in October.
In March of this year, Wyoming became the first state in the country to pass a law recognizing DAOs as a separate form of limited liability company.