DAOs Are Taking Over, With New Wyoming Law - Yahoo Finance
History is unfolding before us with BLOCKS DAO LLC paving the way as the first legally registered DAO LLC coming out of the groundbreaking new blockchain law in Wyoming.
Perhaps the biggest beauty of the blockchain industry is that it is constantly pushing the boundary of what is valid and accepted in society. Cryptocurrency has forced us to question what we even consider a currency and DeFi has proven that financial ecosystems can exist outside of traditional structures.
Now Decentralized Autonomous Organizations (DAOs) are on track to change the way organizations work moving forward. In light of this, the US state of Wyoming recently passed a law that, for the first time in US history, formally recognizes DAOs and gives them the same legal power as limited liability companies.
What are DAOs?
A DAO is a Decentralized Autonomous Organization and essentially, one that is governed by a set of rules. Naturally, all organizations are governed by a set of rules but what makes DAOs different is that these rules are embedded into the computer program used by the organization. These computer programs are also decentralized, meaning that they are not governed by a single source (person, computer, etc).
Because these rules are embedded into a computer system, they are enforced automatically and this ensures greater efficiency. For example, if the rules of the organization state that a certain system upgrade is to take place at a certain time or certain payments should be made at certain times, this is automatically carried out by the computer system
Being decentralized, the predetermined rules cannot be circumvented and changes to organizational procedure and structure can only be made through the process of voting. Organizations that are built on DAO are ones that are working towards a common goal or have certain core values they want to espouse.
By using DAO software, these processes and values are protected, not subject to human error and are carried out automatically. The DAO was first launched in 2016 and was able to raise over $150 million in funding in what was the largest crowdfunding effort at the time with a vision of taking its possibilities to the world.
source: https://finance.yahoo.com/news/daos-taking-over-wyoming-law-194516224.html
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