Wyoming approves the first legally recognizes DAO in US

The state of Wyoming has approved the first-ever legally recognized Decentralized Autonomous Organization (DAO) in the United States.

Wyoming approves the first legally recognizes DAO in US

The American CryptoFed DAO has received a notice from the Wyoming Secretary of State's office on July 1 recognizing it as a legal entity, according to the release. 

Marian Orr, the CEO, said, “Wyoming is the leading digital assets jurisdiction in the USA, and now with this DAO law, Wyoming is arguably the top blockchain jurisdiction in the world. What this means is that creating a true digital currency with mass acceptance is now possible.”

The CEO emphasized that DAO’s native algorithmic stable token, the Ducat, facilitates fee-free transactions. The Ducat token is based on the EOS blockchain, which uses delegated-proof-of-stake (DPoS) consensus to achieve high-speed transactions at the expense of decentralization.

The American CryptoFed DAO was established by mobile banking solutions provider mSHIFT on July 1st, 2021. The project’s goal is to promote a two-token economy that is immune from inflationary or deflationary influences.

New tokens are issued through the interest that is paid to Ducat holders and rewards issued to the network’s users. Ducat rewards and interest rates are adjusted dynamically by machine learning, with the Ducat intended to appreciate against the USD by the amount of inflation the dollar experiences.

The DAO is also issuing its governance token, Locke, which is used to stabilize Ducat. Locke is issued in compliance with the Token Safe Harbor Proposal 2.0 outlined by SEC Commissioner Hester Peirce in April.

Wyoming has been at the forefront of pioneering permissive crypto regulations in the United States during recent years. The state regulators working alongside Avanti Bank & Trust’s Caitlin Long to develop a banking charter framework for crypto firms.

In September 2020, Kraken received a Wyoming bank charter, making it the first crypto business allowed to operate as a bank in the United States. In March of this year, Wyoming became the first state in the nation to pass legislation into law recognizing DAOs as a distinct form of limited liability companies.

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