For Immediate Release
Rock Hill, South Carolina, February 3rd, 2023 – The Zone Authority of the Catawba Digital Economic Zone (CDEZ) passed a regulation that enables DAOs to register under CDEZ. Effective immediately, DAOs will be recognized as legal entities within the Zone.
Similar to the draft regulation posted for comment last year, the DAO regulation allows the option for DAOs to incorporate as two different entity types: Limited Liability Companies (LLCs) or Unincorporated Non-Profit Associations (UNAs). The LLC model draws inspiration from Wyoming’s 2021 act and 2022 amendments related to DAOs, with similar responsibilities, capabilities, and technologically specific clarifications. However, the CDEZ LLC provides less unnecessary red tape on how DAOs are managed by algorithms, managers vs members, or to what extent they issue new proposals.
The UNA option is unique and would be the first of its kind globally. UNAs provide the flexibility that DAOs crave, governing itself almost exclusively though its “governing principles”, or an operating agreement. These entity types provide greater flexibility, yet still retain limited liability. The smart contracts used to manage the DAO UNAs will use a publicly available identifier which supports the Zone’s commitment to transparency and consumer protection. Members will use Decentralized Identifiers (DIDs), the manner in which they will be obtained or provided will be established by the Zone Authority Committee. While the original UNA was mainly for non-profit purposes; the new regulation leverages the UNA law’s existing exemptions to allow DAO UNAs to provide compensation, including through potential staking and the assumption of risk.
As of today, the Zone’s Incorporation platform can register DAOs as LLCs. In the near future, users will have the ability to register as DAO UNAs as well. Pursuant to the regulation, each individual in a DAO UNA must receive a digital identifier as provided by the Zone Authority. Once the Zone Authority has selected, approved and integrated an appropriate identifier into the Digital entity platform, users can organize their DAOs as UNAs.
CDEZ incorporation provides a 21st-century user experience. The CDEZ replaces paper filings and in-person meetings with a streamlined platform, a collaborative discord to ensure that decisions are community-driven, and quick customer service. After users conduct a simple KYC check and input their basic company information, they automatically have access to their incorporation documents on the platform, – allowing them to secure an EIN and set up a US bank account.
The Catawba Digital Economic Zone invites company founders to create CDEZ LLCs and DAO LLCs. Visit here for more information and join a next-generation jurisdiction.
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ABOUT THE CATAWBA DIGITAL ECONOMIC ZONE
The Catawba Digital Economic Zone (CDEZ) is the first jurisdiction created for Fintech and Digital Asset growth in the United States. Located in the Carolinas, the Zone has world-class laws optimized for digital service industries, finance, and blockchain. CDEZ is in the territory and under the jurisdiction of the Catawba Indian Nation of South and North Carolina.
Media Contact: Joseph McKinney
CEO
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