DAO Gets Recognized as Legal Entities by the Marshall Islands

Key Takeaways:

  • The Marshall Islands accepts DAOs as legal entities.
  • RMI passes the Non-Profit Entities (Amendment) Act 2021.
  • MIDAO will help organisations get registered within the country.

On February 15, the Republic of the Marshall Islands has announced the registration of Decentralised Autonomous Organizations (DAOs) as legal entities and has become the first sovereign country to do so. A native organisation named MIDAO Directory Services Inc. will be helping companies to get legal recognition within the country. 

The RMI has recently passed the Non-Profit Entities (Amendment) Act 2021, and its success is marked by Shipyard Software’s Admiralty LLC’s achievement of legal status with the help of MIDAO. With the mission to help organisations easily transform into DAOs, RMI is now open to spreading its help worldwide. 

“DAOs are the next major iteration of human organizational structure. As mass adoption of blockchain technology takes off, it is critical that DAOs be explicitly recognised as a new corporate entity on the international stage. We are honoured to form the first DAO in the RMI and take the first step in legal formalisation of the DAO revolution”, says Mark Lurie, CEO and Co-Founder of Shipyard Software.

DAOs are “internet-native businesses”, a group of organisations that are operated by a code approved by the group that started it. They are helpful to bring together minds that think alike all across the globe and is safe because of their transparency. DAOs are generally used in Decentralised Applications (DApps), NFTs, charity purposes, decentralised finance (DeFi) and other tech development purposes as well. 

Bobby Muller, former RMI Chief Secretary and President and Co-Founder of MIDAO have said, “We are in the midst of the blockchain revolution, and people all over the world are exploring new ways to organise and make decisions in a more efficient and egalitarian manner. Decentralised autonomous organisations present an enormous opportunity for people to organise in a more efficient and less hierarchical manner. We in the Marshall Islands recognise this unique moment to lead in this critical space”.

Recent Happenings in DAOs

  • On November 26, 2021, OlympusDAO Fork Snowdog (a community-based meme coin owned by Avalanche) plummeted by 90%, and a majority of the holders incurred massive losses. It was launched based on an eight-day experiment and promised buyback but failed miserably. 
  • Last year, SpiceDAO purchased the first copy of a “director’s bible” for Alejandro Jodorowsky’s “Dune” and paid almost hundreds of times the book’s price at the auction. 
  • A group called ConstitutionDAO was ready to bid forty-seven million dollars in cryptocurrency on thirteen extant original copies of the United States Constitution. However, they lost to Ken Griffin, the C.E.O. of Citadel.
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Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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