I believe Wyoming recently passed laws to give DAOs rights as corporations. I am curious if I'd be able to, say, give partial "ownership" or royalties to my users.
Yeah, again, I don't know much about law in general but especially this stuff, just wonder whether the Wyoming treat DAOs as LLCs except Wyoming can take away protection if believing the DAO is fraudulent jives with SEC regulations [0]. I'm sure there will be different cities/states jumping on the bandwagon, as mayors are seemingly trying to be cool by taking bitcoin salaries. I don't know how much of it conflicts with current law and how much law will just change with the flow, a la Uber and AirBnB.
There is no reason why a DAO or any other organization cannot be an LLC or whatever other kind of business entity so long as it complies with the requirements thereof
True, if they comply with the requirements. I just wonder if DAOs, which typically have tokens available to any public purchaser, would fall into a category of securities and therefore public securities, which would violate maybe not the requirements of the business entity but other laws.
From what I understand, and I admittedly don't feel certain on this at all, LLCs are private entities where ownership can only be offered privately, not open to be sold on a public exchange, and many DAOs plan to sell their tokens on public exchanges.
Again, I think laws can change and personally think we need more global overarching governance to deal with internet interactions, yet think that some of these things are quite incompatible/contradictory to current law.
Securities can be sold privately. To be sold publicly, a security must comply with state and federal securities regulations. If a DAO sells its securities publicly, that is fine so long as they comply with the relevant regulations. The relevant regulations typically make it impractical for a firm to sell their security publicly unless they are being listed on a stock exchange in an IPO. That might not be the case in a DAO.
LLCs are just one business entity type and a DAO does not have to be an LLC.
They don't have to list on a stock exchange, there is just no reason to comply with SEC public sec regs if you aren't going to because they are incredibly arduous.
They can be sold privately in a bunch of different ways and not necessarily just to accredited investors depending upon how the investment is structured and who it is offered to.
