In line with a recent news published by ‘Gravel & Shea’, DAO [Decentralized Autonomous Organization] developer cooperative dOrg has formed a LLC [Limited Liability Company] to grant its native DAO legal status.
As the name implies, a DAO is a firm with no centralization or hierarchy, and is instead ruled by open-source digital rules based on a ‘blockchain‘ – a smart contract – and operated in public by users via an accord voting selection mechanism.
As per Gravel & Shea, the native DAO of dOrg, underpinned by the DAOstack framework, is currently the primary ‘legally‘ established entity of its kind within the U.S. The DAO rules and implementation are available on the Ethereum [ETH] blockchain, and the DAO is authorized as a Blockchain-Based LLC firm in Vermont known as dOrg LLC.
The consequence is that this DAO will now be able to participate in contractual agreements and offer liability protection, as per the report.
DOrg reportedly asked Gravel & Shea to provide a “legal wrapper” for DAOs. Oliver Goodenough, special counsel to Gravel & Shea, commented on the dOrg DAO’s legal position, adding:
“We believe that dOrg is the presently the primary legal entity that directly references blockchain code as its source of governance. Its material operations and possession interests are managed entirely on-chain.”
According to an ‘announcement‘ ratified by dOrg’s proposal engine, the collective hopes to form it more easy for other DAOs to obtain a legal position within the future:
“We need to make what we just simply did accessible to anyone within the world. Moreover, the way of configuring and deploying a formally registered DAO will be easy just like creating a social media account.”
As reported earlier, the United States SEC [Securities and Exchange Commission] ruled earlier in 2017 that tokens issued by the now-defunct “The DAO” project were to be classified as securities. Despite being a crowdfunded firm, he SEC added that the DAO couldn’t be included beneath its Regulation Crowdfunding exemption since it was not registered as a broker-dealer/funding portal.