Good jurisdiction for registering a DAO?

[eomeakyl]

I'm currently working within a DAO and we're considering forming a legal entity to provide some liability protection. We've considered keeping the DAO purely crypto-based and not registering an entity anywhere, but that opens up risk for unlimited liability to everyone who owns DAO tokens. Does anyone have experience or recommendations for jurisdictions that are well suited for registering DAOs?

 

[JohnnyDoe]

Wyoming could be a good option. But if you do things well and remain anonymous, you don't really need a legal entity. Mr. Nakamoto would agree.

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[eomeakyl]

JohnnyDoe said:
Wyoming could be a good option. But if you do things well and remain anonymous, you don't really need a legal entity. Mr. Nakamoto would agree.
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Anonymity isn't an option. Wyoming doesn't seem as favorable as Delaware. Registering in the USA seems like a bad idea in general.

 

[JohnnyDoe]

A DAO registered as a legal entity is a contradiction in terms. Anyway at the moment the US are light years ahead on this.

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[eomeakyl]

JohnnyDoe said:
A DAO registered as a legal entity is a contradiction in terms. Anyway at the moment the US are light years ahead on this.
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We can agree to disagree. I'm not open to registering in the USA. I'm open to other options.

 

[JohnnyDoe]

eomeakyl said:
We can agree to disagree. I'm not open to registering in the USA. I'm open to other options.
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If you incorporate in a shithole like Cook Islands or Bahamas etc. you can only expect s**t resolution (if any at all) of your problems, if you ever have any. If you need legal protection you need to look at countries with a decent legal system.

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[Vor]

JohnnyDoe said:
A DAO registered as a legal entity is a contradiction in terms. Anyway at the moment the US are light years ahead on this.
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"DAO"s really just seem to translate to Discord ran company that's playing fast and loose with labor laws and payroll tax obligations lol.

 

[eomeakyl]

We're talking with a few law firms currently to set this all up. We're thinking of Cayman Islands Foundation paired with a company in Dubai. It's all pretty expensive to set up (>$50k per year). It's much more robust though than a Wyoming/Delaware LLC. The USA doesn't have suitable laws for registering DAOs and is pretty unfriendly when it comes to crypto, despite what Wyoming marketing advertises.

 

[khinkali]

Is the issue "general partnership", which to quote OP "opens up risk for unlimited liability to everyone who owns DAO tokens" or are we talking Ltd partnership that somehow gives legal protection to token holders?

Switzerland has been talked about a lot, regarding DAOs. I still wonder how common law jurisdictions (Ireland, Scotland) could fit in.

Wasn't the English "private fund" approach supposed to make this kind of thing easier? Ltd partners can vote to remove managers, without being classified as investment managers themselves? It's been around for years, but so far I see very little clarity on how it works.