The Marshall Islands have taken a significant step forward in the advancement of decentralized technologies by officially recognizing DAOs (Decentralized Autonomous Organizations) as Domestic Limited Liability Companies. This groundbreaking decision is the first of its kind and will set a precedent for other nations to follow suit. The Marshall Islands’ government believes that this move will help spur innovation in the blockchain space, and open up new opportunities for businesses and entrepreneurs. The legislation is set to go into effect on July 1st, 2020, and is sure to have a dramatic impact on the future of decentralized technologies.
Today marks a major milestone for the Republic of the Marshall Islands (RMI) as it becomes the first country in the world to officially recognize decentralized autonomous organizations (DAOs) with the passing of the Decentralized Autonomous Organizations Act of 2022. This groundbreaking legislation allows legal entities registered in the country to legally adopt DAO structures and governance tools, paving the way for MIDAO to facilitate the DAO Registry Process in the Marshall Islands. This is a major step forward towards the development of decentralized entities, and is an exciting opportunity for the Marshall Islands to lead the way in establishing legal frameworks for DAOs.
The Republic of the Marshall Islands has announced an historic move to issue its own digital currency, becoming the first nation to do so. This announcement comes at a time of increased calls for governments to introduce more oversight and regulation of blockchain and cryptocurrency. With the collapse of the FTX centralized crypto exchange, many nations are now introducing new legislation and enhanced enforcement from financial watchdog institutions. The Marshall Islands recognizes that a ‘one-size-fits-all’ approach may not be suitable for this sector and is aware of the advantages of decentralization for its economy. This move could potentially be revolutionary for the future of cryptocurrency.
The RMI’s Decentralized Autonomous Organization Act of 2022 is a groundbreaking law that establishes a legal basis for DAOs:
- It allows for the incorporation of DAOs under the internationally recognized LLC structure, and allows for both for-profit and not-for-profit entities to register.
- It also recognizes DAO governance, voting processes and framework, including tokenization.
- To further encourage the use of DAOs, the government of RMI has created an investment fund to continue education and training around DAOs and how to integrate them into the economy.
- It provides definitions and regulations for DAO formation, agreements and the use of smart contracts.
- it is a significant milestone for DAOs and is a testament to the RMI’s commitment to encouraging the use of these innovative technologies.
During this crypto reset moment following FTX, it is critical that people understand this event would not have happened if the exchange were decentralized – DAO structures could have prevented this from happening. We are honored to work with the government of the Republic of the Marshall Islands who clearly understands the value of decentralization and that legal systems should evolve at the pace of technologyAdam Miller, CEO of MIDAO
More about MIDAO
MIDAO is pioneering the incorporation of Decentralized Autonomous Organizations (DAOs) in the Marshall Islands, the only jurisdiction to recognize them as the decentralized entities they are. MIDAO makes the setting up of DAOs simple and straightforward, taking care of the legal paperwork, providing a physical mailing address and submitting annual filings. This allows the DAOs to focus on their purpose and objectives, as MIDAO believes that DAOs are the future of how humans organize and deploy resources. MIDAO is proud to be at the forefront of this revolution.