The first Limited Liability Decentralized Autonomous Organization or DAO, has been created by DOrg, a company known for DAO related software which was founded by Ori Shimony, Asgeir Sognefest and Jordan Ellis.
DAO is a legal way to reference blockchain code (like smart contract) as the legitimate source of authority for their company’s operations and governance.
The process actually meets the complex nature of a DAO with the legal protections afforded to limited liability companies.
“DOrg formed a Blockchain-Based Limited Liability Company (BBLLC) in Vermont, dOrg LLC, after positioning its DAO to the Ethereum blockchain. By linking the DAO to this BBLLC, the DAO acquired official legal status after being linked to BBLLC, thus allowing it to enter contractual agreements and offer participants liability protections,” according an information from the founders.
The company builds DAO-related software and it is a cooperative of blockchain development. According to their claims, “users can easily create a legally registered DAO just like creating social media account with the application of this new legal framework”.
“We realized that Vermont’s BBLLC law was unique in creating the option for companies to reference blockchain code as the legitimate source of authority for their company’s operations and governance,” stated Shimony.
“The Operating Agreement establishes that through the DAO’s decision-making engine the Company will only accept requests to perform services for Clients, add new Participants, allocate work and remuneration to Participants, and distribute voting rights.”
Stating further, he said that “ Becuase of the need to be transparent in all situation, we worked extra diligently to make sure that all legal agreements were very simple and yet created no backdoors or special privileges that could divert the authority of the DAO,”
The process will be shared to all , so anyone can create legally licensed DAOs, according to the team. This initiative is a good move and safer for users and investors making the creation of decentralized organizations easier.
Credit: John BiggsJOIN OUR COMMUNITY