Wyoming Could Soon Legally Recognize Ethereum DAOs

Wyoming could soon legally recognize Ethereum DAOs as they are considered the next step in the evolution of crypto and blockchain technology so let’s read some more in our latest Ethereum news today.

The Wyoming DAO bill passed the Wyoming Senate committee and will soon start voting on the bill which allows the formation and operation of legally recognized decentralized autonomous organizations. Aaron Wright, the founder of the blockchain-based agreement enabler Open law and professor of law at the Cardozo School of Law, pushed for a DAO bill and confirmed the new developments in  a tweet:

 “DAOs took a HUGE step forward today. The Wyoming DAO bill passed the Wyoming Senate committee…This bill is significant.”

Wright said that this bill could allow developers to create a legal entity that is referred to as a “DAO” and the users will be able to transact with the organization called XYZ DAO without having to fear legal repercussions. For the unintended, DAOS are organizations that are represented by rules encoded as a computer program that is transparent and controlled by the organization members rather than being influenced by a central government.

🚨 DAOs took a HUGE step forward today 🚨

The Wyoming DAO bill passed the Wyoming Senate committee. I’ll try to keep folks posted on what happens next.

This bill is significant — short thread why 👇 https://t.co/RLrRUNAL2A

— Aaron Wright (@awrigh01) March 9, 2021

BTC, Dash ETH are all attributed by some to the first DAOs but new projects like Yearn Finance, Badger DAO, and Sushiswap are more straightforward DAOs that allow token holders to vote on different protocol upgrades, changes, and topics. Unlike the traditional companies, DAOs are more flexible as Wright explained:

 “DAO’s can take any shape developers want. It can be flat and democratically managed or algorithmically managed.  You even can explore more hierarchical structures (but, imho that’s less exciting).”

Wyoming could soon change the way DAOs are seen as the bill could provide freedom to structure the affairs a mix of statutory filings, smart contacts, and legal agreements to organize affairs:

 “This flexibility will give folks the ability to productively play with governance and DAO structuring. DAOs can operate with the “real world” and manage real work risks.  They now don’t need to be toys; they can be players.”

Wyoming is exploring creating an API that presumably would enable folks to register DAOs. If so, in the not-so-distant future, folks will be able to set up their organizations from command line.

DAOs can be spun up like docker containers.

— Aaron Wright (@awrigh01) March 9, 2021

The process doesn’t have to be expensive either as the bill proposes that it could cost about hundreds of dollars instead of tens of thousands of dollars which will let millions of Ethereum DAOs bloom. Wright said that a move like this could see individuals running and managing their organizations on ETH while representing assets related to these organizations on the blockchain.