Summary
- The US state of Alabama said the DUNA Act, which grants legal status to DAOs, has taken effect.
- Under the DUNA Act, nonprofit-purpose DAOs with at least 100 members will be granted full legal personhood, it said.
- Legally recognized DAOs can own property and engage in litigation, while members and administrators are protected from personal liability, it said.
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The US state of Alabama is granting legal status to "decentralized autonomous organizations (DAOs)."
a16z Crypto, the cryptocurrency-focused investment arm of Andreessen Horowitz (a16z), said on the 1st (local time) that "with Governor Kay Ivey’s signature, the Distributed Unincorporated Nonprofit Association Act (the DUNA Act) has taken effect." The core of the DUNA Act is to grant legal status to DAOs. a16z Crypto added that "Alabama has become the second state in the US, after Wyoming, to grant legal status to DAOs."
The DUNA Act stipulates that DAOs will be granted legal status when they have at least 100 members who joined for a shared nonprofit purpose such as managing a blockchain network. Cointelegraph reported that "DAOs (with legal status) are granted full legal personhood, allowing them to own property and to sue or be sued," and that "individual members and administrators (of DAOs) will be protected from personal liability."
Miles Jennings, policy head at a16z Crypto, emphasized that "(the DUNA Act) is a best-practice example of forward-looking policy." He said, "Decentralized governance is an essential element of the future of crypto," adding, "A related bill has recently passed in West Virginia and is awaiting the governor’s signature, and we expect more states to follow."
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
