Another week in crypto has passed, and for some that don't necessarily pay attention to the day-to-day activity within the crypto world, it can often seem downright boring, but if history is any indication, it is often times like these when some of the most overlooked and remarkable news will reveal itself. In this particular video I we'll go over a new article I read called “America’s First Legal DAO Approved in Wyoming” and give you my opinion on what I believe this means for the EOS blockchain, the source link for the article will be below, OK now let's get started.
To paraphrase the article first starts off with, in the crypto-friendly state of Wyoming, decentralized autonomous organizations, often known as DAOs, are being recognized as a new kind of corporation. In a nutshell, the American Crypto-Fed DAO, which operates on the EOS blockchain technology, is the first decentralized autonomous organization to be approved in Wyoming.
On July 1, Wyoming became the first state to pass legislation giving legal recognition to DAOs. According to a statement made on Sunday, Wyoming, the first state in the United States to give a charter to a cryptocurrency bank, has granted legal status for a decentralized autonomous organization, the American Crypto-Fed DAO.
The organization, which has as its goal the introduction of a new monetary system, has officially been acknowledged as the first legally recognized decentralized autonomous organization in the United States. Following the passage of a measure by Wyoming legislators in March that allows decentralized autonomous organizations (DAOs) to be legally registered in the state.
These entities, which are managed by smart contracts and do not have the hierarchical control structure that is common in conventional corporations, have the same legal rights as a limited liability company under the law. The legislation becomes effective on July 1, 2021. Decrypt spoke with Aaron Wright, a professor at Cardozo Law School in New York and the creator of the DAO, about how the law makes it simpler and less expensive to start up a DAO and gives legitimacy to numerous cryptocurrency initiatives back in March.
A limited liability company (LLC) is formed when a decentralized autonomous organization meets specific requirements. This is a novel idea in the legal world, where every organization is considered to be controlled by at least one person.
Wyoming's crypto-currency aspirations, Wyoming's image as the most crypto-friendly state in the United States is further enhanced by the DAO legislation. Earlier this year, it became the first state in the United States to provide state charters to cryptocurrency banks, and it has already licensed two: Kraken and Avanti. The American Crypto-Fed DAO CEO, Marian Orr, said in a news statement accompanying the announcement that Wyoming is "the preeminent digital assets jurisdiction in the United States" and that "Wyoming is probably the top blockchain jurisdiction in the world" with the DAO legislation.
Orr, who is also the mayor of the city of Cheyenne, said that her position as CEO will be rendered obsolete over time, since decisions would be made based on votes by the DAO's governance token holders, rather than her own. The DAO claims that its goal is to establish a new monetary system with fee-free trade via the use of the Ducat, a native algorithmic stable token developed by the organization.
As a result of the legal recognition granted to Bitcoin, "creating a genuine digital currency with widespread acceptability is now possible," according to Orr. Tokens such as Ducat and Crypto-Fed's governance token, Locke, will be issued in accordance with the definitions of tokens specified in the Token Safe Harbor Proposal 2.0 proposed by SEC Commissioner Hester Pierce, according to the American Crypto-Fed DAO.
Before developers are subject to current security rules, according to the idea, they should have a three-year grace period. This would give a project enough time to develop, mature, and become "sufficiently decentralized" —in much the same manner that former SEC Director William Hinman characterized Ethereum in his justification for not classifying the asset as a security in the first place.
In order to achieve the scalability and security that the team desired, Crypto-Fed is based on the EOS protocol, rather than the Ethereum protocol. According to the team's paper, "Why we built our blockchain company on EOS instead of Ethereum," they chose EOS because it has "high scalability, low latency, and zero transaction cost" for building an enterprise-grade financial product on blockchain. It is possible that an EOS-based initiative may become America's first decentralized autonomous organization.
Well there you have it, despite what all the naysayers may have hoped for, EOS prominence is on the rise, because EOS main-net has ultimately address many of the necessary concerns on blockchain early on, notice in the article it stated that they chose to build on the EOS blockchain over Ethereum because of low latency, high scalability, and low transaction cost, these points are absolutely crucial if blockchain is ever to go mainstream, EOS has addressed its issues in this area, and thus as mainstream blockchain projects began to be developed, enterprising companies will simply look at what makes sense for them to build their corporate blockchain business is on. To put it bluntly, corporations are in the business of making money, pure and simple.
Corporations simply look at the bottom line, and what the bottom line is for blockchain, is to have as few interruptions as possible to their business model, and to that end, scalability, low latency, and low fees, are crucial to achieve this objective. In thus, despite all of the naysaying, disinformation, and downright inaccurate reporting, of some legacy blockchain media, EOS main-net is nevertheless on the rise in prominence, and in my opinion, this is only just the beginning, as EOS main-net continues to make new strides, in areas of governance, as well as more innovative ways of decentralized social networking, EOS main-net is trailblazing new pads, and the momentum of this unstoppable train is beginning to move past a point where it can no longer be stopped.
To all EOS holders, our prominence is on the rise.
While reading the article, I realized that I didn't know many things. I guess I should keep researching eos. Thank you very much, thanks to your articles, we stay informed about the agenda.
eos ecosystem is getting more and more valuable day by day. It is recognized by more people. I am one of them. At first, I didn't know much about the EOS system. Thanks to your articles, I have more information.
I hope this ecosystem continues to cooperate. I hope you attract more companies like Chintai company use this system
Thank you for reading