Wyoming DAO LLC Law (Crypto & Web3)

Summary

Wyoming was the first U.S. state to legally recognize Decentralized Autonomous Organizations (DAOs) as a distinct form of Limited Liability Company (LLC), providing legal protection for crypto projects.

Rights & Rules

01.
A DAO (which is often governed by smart contracts on a blockchain) can register as a legal business entity in Wyoming.
02.
The members (token holders) of the DAO receive the same liability protections as members of a traditional LLC, meaning they can't be sued personally for the DAO's debts.
03.
The 'Articles of Organization' for the DAO must include a publicly accessible identifier (like a smart contract address) that anyone can use to view the DAO's underlying code.

Penalties

01.
If a DAO's smart contract is fundamentally broken or not updated as legally required, the state can dissolve the DAO's legal status, stripping members of their liability protection.

Verified Citations

Wyoming Statutes Title 17, Chapter 31

Source

"A decentralized autonomous organization is a limited liability company whose articles of organization contain a statement that the company is a decentralized autonomous organization... The smart contract shall be used to manage, facilitate or operate the decentralized autonomous organization."