Wyoming Grants Legal Status to a DAO for the First Time in US History

The state of Wyoming, known for its crypto-friendly attitude, has approved the first legally recognized decentralized autonomous organization (DAO) in the United States. According to CoinTelegraph, the American CryptoFed DAO was officially recognized as a legal entity as of July 1st.

Marian Orr, the Chief Executive of CryptoFed DAO, stated on July 4th that: “Wyoming is the leading digital assets jurisdiction in the USA, and now with this DAO law, Wyoming is arguably the top Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term jurisdiction in the world. What this means is that creating a true digital currency with mass acceptance is now possible.”

The Merchant Advisory Group (MAG) expressed public support of the filing. John Drechny, who is the Group’s Chief Executive, stated that the MAG has been advocating for increased competition in the payment acceptance sector.

What is the CryptoFED DAO

The American CryptoFed DAO describes its mission as promoting the creation of a two-token economy that is resilient against inflationary or deflationary influences. It was established by a mobile banking solutions provider, mSHIFT on July 1st. The two tokens are the Ducat, CryptoFed’s EOS-based algorithmic Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term and the Locke, CryptoFed DAO’s governance token.

The Ducat can be used for fee-free transactions. Ducat holders earn interest, and network users are paid rewards in Ducat. The rewards and interest rates are adjusted dynamically by machine learning; the Ducat is designed to appreciate against the USD in accordance with inflation rates.

Additionally, the Locke has been issued in compliance with the Token Safe Harbor Proposal 2.0, which was published by SEC Commissioner Hester Peirce in April.

The recognition of the CryptoFed DAO as a legal entity is only Wyoming’s most recent move in a series of crypto-friendly gestures. The legislation to support the legal recognition of DAOs was passed in the state in March of this year.

Previously, in September of 2020, the state of Wyoming granted crypto exchange Kraken with a bank charter, making it the first crypto business that was legally allowed to operate as a bank in the country. Wyoming granted a similar charter to AvantiBT in October.