Many states in the U.S. are currently en route to easing restrictions towards adopting cryptocurrencies. While states like Texas have drafted a grounds-up law regarding cryptocurrencies, New York has eased restrictions for mining systems with ‘green credentials’. However, Wyoming has eased the route towards cryptocurrencies with a different approach.
The crypto-friendly state has approved the first legally recognized decentralized autonomous organization (DAO) in the United States.
CryptoFed DAO received a notice from the state’s secretary office recognizing it as a legal entity. The announcement stated:
“Wyoming is the leading digital assets jurisdiction in the USA, and now with this DAO law, Wyoming is arguably the top blockchain jurisdiction in the world. What this means is that creating a truly digital currency with mass acceptance is now possible.”
The DAO was established by mobile banking solutions provider mSHIFT on July 1, 2021. Its mission is to promote a two-token economy immune from inflationary and deflationary influences.
Specific attention was paid to the DAO’s native algorithmic stable token called Ducat. It facilitates transactions devoid of fees. The token is based on EOS whose consensus mechanism is delegated-proof-of-stake (DPoS). This facilitates high-speed transactions at the cost of decentralization.
Issuing of new tokens is through interest paid to Ducat holders and rewards to the network’s users. The rate of interest and rewards are dynamically adjusted through machine learning which is intended to appreciate against the U.S. dollar by the amount of inflation the former experiences.
For stabilizing the token, the DAO also has its own governance token named Locke. Locke is issued in compliance with Token Safe Harbor Proposal 2.0 outlined by SEC’s Commissioner Hester Peirce.
Wyoming is one of the pioneering states that are readily accepting and updating their legislatures to incorporate cryptocurrencies. Just like Texas, Wyoming had also passed a bill legalizing cryptocurrencies as money back in 2019. The state is also in talks with state regulators alongside Banks to develop a banking charter framework for cryptocurrency companies.