Wyoming is staking its claim as the go-to destination for decentralized autonomous organizations (DAOs), unveiling groundbreaking legal provisions that establish a new nonprofit status. This move, hailed by crypto powerhouse Andreessen Horowitz (a16z) as transforming the state into a blockchain ‘oasis,’ marks a significant advancement in legal recognition for DAOs.
With the recent signing of a bill into law by Gov. Mark Gordon, Wyoming enhances its legal offerings for DAOs, allowing them not only to form as limited-liability corporations but now also to operate as unincorporated nonprofit associations. This development, a ‘major breakthrough’ according to a16z’s general counsel, Miles Jennings, is set to provide DAOs with essential protections and freedoms, promoting open blockchain networks.
This new designation as ‘decentralized unincorporated nonprofit associations’ (DUNAs) aims to tackle key challenges DAOs face, offering legal existence, the ability to engage in contracts, tax payment capabilities, and limited liability protections. a16z is already directing its associated DAOs to leverage this legal avenue, emphasizing its potential to foster innovation and protect the community.
Wyoming’s proactive stance towards crypto and blockchain enterprises, coupled with efforts from figures like Sen. Cynthia Lummis to regulate crypto federally, underscores the state’s role as a leader in blockchain-friendly legislation. As the legal landscape for DAOs continues to evolve, Wyoming stands at the forefront, offering a welcoming haven for blockchain innovation.
