- Wyoming DAOs seeking to convert to nonprofit status will have access to a new legislative framework beginning this summer.
- Wyoming will implement a new system this summer for the administration and incorporation of decentralised autonomous organisations (DAOs) as NGOs.
The Decentralised Unincorporated Nonprofit Association Act was signed into law on Thursday by Governor Mark Gordon of Wyoming. This gives DAOs with 100 members or more a framework for converting to unincorporated nonprofit associations. On July 1, 2024, the new law will become operative.
In a 50–10 vote on Monday, the bill was approved by the Wyoming House with backing from both parties. To move the bill forward, four Democratic Representatives made a motion.
Four Democrats voted in favour of the Decentralised Unincorporated Nonprofit Association Act, which was first proposed in February and passed the Senate last month by a vote of 23–7.
“A person is not liable for a breach of a decentralized unincorporated nonprofit association’s contract merely because the person is a member, administrator, authorized to participate in the management of the affairs of the nonprofit association or considered as a member by the nonprofit association.”
Legally speaking, DAOs that have registered as nonprofits are allowed to “engage in profit-making activities” as long as all earnings go towards fulfilling the nonprofit’s “purpose.” Additionally, the entities are permitted to purchase and move property, including tokens.
The March 7th paper provides provisions about the legal responsibilities of the association and its members, addresses the functions of smart contracts, and describes the prerequisites for creating a DUNA. The new law states that a DUNA is a distinct legal entity from its members, which implies that the DAO may be held accountable without naming any specific members.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
