Wyoming recognises the first DAO in the United States

The American CryptoFed, the first decentralised autonomous organization (DAO) in the United States, has been granted status as a legal entity. The corresponding order was issued by the governor’s office of Wyoming.

The structure was created by the mobile banking solutions provider mSHIFT. The initiative was supported by The Merchant Advisory Group, which includes 165 of the largest US merchants.

The aim of the project is to create an economy protected against inflation and deflation.

It is planned to achieve this through the issuance of the algorithmic stablecoin Ducat on the EOS blockchain with the DPoS consensus algorithm. It is capable of providing “free” transactions with high throughput by reducing the level of decentralisation.

The emission of Ducat will be issued as interest payments to holders of the stablecoin, as well as rewards to network users. The dynamics of changes to both components will be set by machine learning. The algorithm envisions a rise in the stablecoin’s value relative to the US dollar by the amount of inflation.

The American CryptoFed also plans the release of the governance token Locke, used to stabilise the Ducat’s exchange rate. Its issuance will occur in accordance with the second version of proposals by the SEC on regulatory holidays for startups.

“Thanks to Wyoming’s DAO law, Wyoming is arguably the leading blockchain jurisdiction in the world. For us, this is an opportunity to create a genuine digital currency with mass adoption. It will allow municipalities, merchants and consumers to transact without processing fees. This will yield savings and prevent tax increases,” said Marian Orr, CEO of the organisation.

Back in January 2019, Wyoming passed a law that equated cryptocurrencies with money.

In December 2020, the Wyoming Banking Board granted the status of a financial institution to the cryptocurrency startup Avanti. Earlier authorities approved a similar application from the Bitcoin exchange Kraken.

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