Wyoming has been known as “a new Delaware, crypto-friendly state, blockchain hub” among others. Thanks to forward-thinking lawmakers of the state, netizens enjoy a higher level of economic freedom with regard to taxation and businesses than any other region in the United States.
Strengthening its position further in the cryptocurrency sector, Wyoming has approved the first-ever legally recognized Decentralized Autonomous Organization [DAO] in the country.
Wyoming’s all-new DAO
The organization in question, American CryptoFED DAO is focused on the development of a monetary system tolerant to volatility in value. It had received a notice from the Wyoming Secretary of State’s office that the project had been officially recognized as a DAO in the United States. The law became effective at midnight on July 1. This is heralded as a major step for the initiative and decentralized governance initiative in the country.
The project promotes a two-token economy. Based, on EOS and delegated-proof-of-stake [DPoS] consensus mechanism, Ducat is a token that facilitates daily transactions and also serves as a store of value by guarding its price from volatility against the US dollar.
Locke, on the other hand, is the governance token of the DAO designed to ensure the stability of Ducat.
According to the official press release, the American CryptoFed DAO will be governed by its governance tokens issued pursuant to the token definition described in the Token Safe Harbor Proposal 2.0. This is outlined by SEC Commissioner Hester Peirce. The rules are set by the consensus of the governance token holders and not influenced by a central government, and transaction records are stored transparently and immutably on a designated blockchain.
Commenting on the development, Edward Buchanan, who happens to be Wyoming’s Secretary of State, stated,
“Wyoming has a reputation for being on the leading edge of business technology, beginning in 1977 with the recognition of LLCs. We are proud to continue this innovation by offering legal protections to Decentralized Autonomous Organizations.”