Decentralization is recognized, DAO is legalized by DailyCoin

• The decentralized autonomous organization has gained the trust and support of the government.
• A seemingly just autonomous organization can challenge the succession order maintained by the government.
• The State of Wyoming has approved the first registration of DAO as a limited liability company.
• DAOs can now be traded freely within the states of the United States because they are recognized as legal entities.

The demand for innovation in the encryption industry is developing rapidly. From 2020 to 2021, DeFi and later NFT began to be embedded in the structure of digital encryption activities. Not only that, they have also been challenging the status quo of centralization and its outdated practices, creating a test incubator for other blockchain assets to make it work. As the decentralized protocol extends it to the digital realm, DAO has become an operational necessity.

DAO and decentralized solutions

The DAO is becoming more and more important in the cryptocurrency economy, and Wyoming has passed a statewide bill that recognizes the DAO as a legal organization. American CryptoFed DAO LLC thus became the first legally registered and recognized DAO. Michael Orr, CEO of the first DAO LCC, emphasized that the changes in regulation show that it is “now acceptable to the public”.

The DAO bill was proposed and promoted by Professor Aaron Wright of Cardoso Law School and their students. After the state granted the Kraken bank license, Wyoming was praised for its forward-looking approach and became the first cryptocurrency business to have a bank license in the United States. Wyoming Secretary of State Edward Buchanan confirmed that Wyoming will continue to promote digital and financial innovation.

Aaron Wright concluded that due to the low registration tickets for DAOs, there may be millions or even billions of DAOs in the industry. In addition, he emphasized that the cost of establishing a DAO will be in the order of hundreds of dollars, while the cost of applying to establish a limited liability company may be as high as “tens of thousands of dollars.” In this regard, the government recognizes the DAO’s ability to maintain transparency and promote fairness because they are rooted in the line of code.

DAO as a decision executor

Unlike traditional companies, DAO retains the flexibility to create its own structure. The structure of DAO is programmable, so it can be edited to meet its needs and the needs of stakeholders. The agreement is managed by the VC, and its main goal is to generate returns. However, as Charles Watkins of CURVE has observed, the community is “happy” when development is led and approved by token holders and those who “considering the best interests of the agreement”.

Both operate DAOs and make decisions in the best interest of the ecosystem. However, newer protocols such as Uniswap and 1inch are helping DAO to be developed in parallel with DeFi and NFT.

In the case of encryption protocols, DAO is a protective layer that protects the best interests of the technology. Therefore, the decentralized exchange Curve is voting on whether to enforce its intellectual property rights in court. Network participants and token holders have the right to vote on this topic, and the final result will be achieved through an automated DAO process.

on the other hand

• Vitalik Buterin believes that it is not feasible to extend blockchain voting beyond the DAO due to concerns about security issues beyond the scope of the local blockchain.
• DAO is the only recognized business entity in the United States.
• Token holders with higher stakes can significantly influence the decision-making process, depending on how the algorithm is set up.
• DAO has security vulnerabilities and emphasizes that security is still a worrying issue.

Decentralization will never go out of style.

The case of decentralization has been a long-standing debate. Despite this, The Wolf Of All Streets still emphasizes that Bitcoin is a model of decentralization. Despite the loss of hash rate, it still emphasizes the efficiency of the network.

In an article by Entrepreneur, Andrey Sergeenkov argued that the DAO has the ability to disrupt an industry that is highly criticized and runs counter to common interests. He proposed DePa (Decentralized Political Party), believing that blockchain can increase political accountability and transparency through the new DAO format.

Although decentralization is an achievable reality pursued by blockchain extremists, hidden agendas and financial incentives are the decisive factors for not implementing decentralization. Therefore, DAO has the ability to overturn existing processes and add a layer of trust to blockchain solutions.

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