Wyoming Recognizes Entities Operated by Smart Contracts as Official Limited Liability Companies
Wyoming Recognizes Entities Operated by Smart Contracts as Official Limited Liability Companies
DR.icon
New legal entity forms such as DAO (autonomous decentralized organization): In the blockchain space, DAOs (Decentralized Autonomous Organizations) are emerging as autonomous organizations that minimize human involvement. The state of Wyoming in the U.S. has announced that it will establish a DAO in 2021. In 2021, the U.S. state of Wyoming passed a law recognizing smart contract (algorithmic) entities as formal LLCs (limited liability companies), making them the world's first legally recognized "algorithm-managed companies. Tennessee followed with a similar law in 2022, and attempts are underway to give legal personality to decentralized organizations without human management. These are mainly with DAOs operated by votes on the blockchain in mind, but the idea is also similar to AI Governance in that "the code runs the company. In the future, such a framework for granting legal personality may be applied to organizations in which AI makes decisions autonomously. Even now, it is pointed out that it is technically possible to establish an AI-centered organization in the U.S. by utilizing Wyoming's DAO LLC law. ---