a16z: Will be used as a condition for future investment! Wyoming, USA, establishes new legal framework for DAOs

Wyoming in the United States has established a new legal structure for DAO. a16z is extremely optimistic about this progress and hopes that other DAOs will also adopt this structure. They plan to include this condition as one of the criteria for future investment projects.

Ohio legislation, DAO becomes a legal entity

According to Fortune Magazine, Ohio Governor Mark Gordon has signed a state bill called the "Decentralized Unincorporated Non-profit Association Act" Bill to further regulate Ohio’s growing DAO industry.

DAO can use unregistered nonprofit associations as legal entities, with an effective date of July 1, 2024.

Note: The bill is the Decentralized Unincorporated Nonprofit Association Act (DUNA)

a16z Crypto: A major breakthrough, voters are no longer implicated

a16z Crypto General Counsel Miles Jennings writes pointed out that this bill can provide DAO with much-needed protection and enable DAO to remain open to the blockchain network.

Mainly solves three major problems:

Give DAO legitimacy

Make DAO have tax obligations

Provide members with limited liability protection (free from liability) Legal liability arising from the actions of other members)

Miles Jennings mentioned: The purpose is not to create profits for the DAO (although the DAO can still generate income and distribute it to members). If the DAO violates the law, this structure will not prevent regulatory enforcement. , on the contrary, it allows the DAO to hire legal counsel and appear in court; this also means that DAO voters are not necessarily responsible for the actions of the DAO, just like Enron shareholders are not responsible for corporate fraud.

The biggest challenge: Convincing the DAO to adopt a new structure

Miles Jennings said that the current structure will try to circumvent the thorny issue of "whether cryptocurrencies are classified as securities." He believes that the DAO has no directors, management personnel and have no mission to maximize profits, so tokens should not be classified as securities.

But he also admitted that this structure may still not escape the attention of the SEC.

He pointed out that the biggest challenge at present may be to convince existing DAOs to adopt a new structure: a16z crypto plans to cooperate with invested projects and use it as a condition for future investments (adopting a new DAO structure).

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