Wyoming continues to hold the honorary title of America’s first good news source. This time, the state authorities were the first in the country to legalize DAO based on smart contracts. But what does it mean?
DAO, or Decentralized Autonomous Organization, is an escrow agent that allows you to distribute financial flows in a secure way. This is especially important in conditions of economic and political instability. For example, when using DAO, the salary of municipal service employees charged every time a certain level reaches the number of signatures from residents of the state, who confirm with their signatures that the specialists are doing their job. Signatures confirmed by a cloud service to which the censors do not have access – this means that no one can charge or, on the contrary, cut the fees for service representatives against the rules.
The adopted legalization document supported by MAG, a group of 165 leading American sellers.
The first technology to receive permission was the CryptoFed DAO. According to the press release, the organization received a notification from the office of the Wyoming Secretary of State to recognize the organization as a legal entity.
Thus, American CryptoFed – a DAO governed by governance tokens. Its developer is mSHIFT, a mobile payment solution provider.
Control over the network determined through reaching consensus among the token holders. Orr assures that the management of the organization does not depend on the central government. Transaction records will be stored on the blockchain network. The very goal of the project, according to the official website, is to create an economy protected from inflationary and deflationary risks.
This is expected to be achieved through the release of the EOS-based algorithmic stablecoin Ducat with the DPoS consensus algorithm. It is able to provide high-throughput “free” transactions by reducing the degree of decentralization.
Ducat will be issued in the form of interest paid to stablecoin holders as well as rewards to network users. The dynamics of changes in both components will set using machine learning. The algorithm implies an increase in the value of the stablecoin against the US dollar by the amount of inflation.
The American CryptoFed also envisions the issuance of a Locke governance token, used to stabilize Ducat’s exchange rate. Its issue will take place in accordance with the second version of the proposals of the SEC Commissioner Hester Peirce for a regulatory vacation for startups.
Wyoming – leading blockchain jurisdiction
Thanks to the DAO Act, Wyoming is arguably the leading blockchain jurisdiction in the world.
Wyoming positioned as a crypto blockchain hub. For example, in September 2020, market research firm Chainalysis partnered with the state’s banking regulator. As part of the partnership, Chainalysis is tracking crypto transactions in the state to combat money laundering.
At the same time, the Kraken crypto exchange received permission from the regulator to create a fully regulated crypto bank in Wyoming. In the coming years, the exchange also plans to expand its custody services, add staking, trust accounts and administration.
Additionally, in January 2019, Wyoming passed legislation equating cryptocurrencies with money.
We will also remind that earlier Senator from Wyoming Cynthia Lammis suggested that miners leaving China choose their home state as a new “place of residence”.