Hello Frens -
Just wanted to share this here…It’s a16z’s summary of Wyoming’s new legal entity for DAOs which they are calling DUNA. It passed last week and is set to go into effect in July 2024.
I thought it relevant to our community here since so many of us are U.S. based and therefore subject to U.S. regulations.
An excerpt:
While Wyoming courts will ultimately determine what compensation is reasonable, there are ample real world examples of nonprofit organizations to draw inferences from. In addition, the unique characteristics of blockchain networks provide a strong foundation for arguments about the reasonableness of robust member compensation. For example, because blockchain networks are typically open source and can be “forked” (duplicated) by anyone, the continued prominence and use of a particular blockchain network that collects fees and distributes compensation to members, is an implicit endorsement by users of such network that the compensation it is paying is reasonable. If it weren’t, an alternative network would be launched.
Nevertheless, the “reasonable” qualifier does present a ceiling on the value that a blockchain network can extract from users and compensate members with. While those that wish to design vertically integrated and centralized blockchain products and services may balk at hurdles to value extraction, this notion is consistent with the spirit of blockchain networks, not antithetical to it. Web3 will be a failure if web3 blockchain networks are ultimately built to extract value from users in the same manner that web2 corporate networks currently do (e.g., Apple’s 30% takerate on AppStore products). Wyoming’s approach supports the web3 ethos, while still enabling cash flows to digital asset holders. This is a significant breakthrough…
Full write up with links to complete white paper pdf: The DUNA: An Oasis For DAOs - a16z crypto
Eager to hear any thoughts/ feedback. 