AdmiralDAO governs the decentralized exchanges developed by Shipyard Software.

As Shipyard Software develops future DEXs and DeFi products, they will also be governed by AdmiralDAO on behalf of the community.

Currently, AdmiralDAO is incorporated as Admiralty LLC, a non-profit member managed LLC in the Marshall Islands. It also includes a multisig wallet with several signers, including Shipyard’s founding members. Over time, we intend to decentralize governance to the broader Shipyard community.

“DAOs are the next major iteration of human organizational structure. As mass adoption of blockchain technology takes off it is critical that DAOs be explicitly recognized as a new corporate entity on the international stage. We are honored to form the first DAO in the Republic of the Marshall Islands and take the first step in legal formalization of the DAO revolution.”

– Mark Lurie, CEO and Co-Founder of Shipyard Software

Why did we incorporate?

AdmiralDAO’s status as a legally incorporated entity allows Shipyard to continue expanding its product range and decentralized decision-making capabilities, while protecting users within the bounds of the international legal system.

Most DAOs have not created legal entities because they can ostensibly be governed entirely on the blockchain. However, DAOs that choose to incorporate within the current global regulatory framework are able to capitalize on two legal benefits — limited liability and corporate personhood.

In other words, AdmiralDAO is at the forefront of a new shift in crypto entrepreneurialism that minimizes potential legal ambiguities and enables DeFi founders and users alike within the existing global business framework. We expect to see more crypto founders embrace the benefits of legally incorporating DAOs.

Shipyard incorporated AdmiralDAO in the Republic of the Marshall Islands (RMI) because the country offers the most comprehensive DAO-specific policies, and because of the RMI’s ongoing track record of embracing innovation.

In January 2022, the RMI passed an amendment to their Nonprofit Statute that enables DAOs to incorporate as nonprofit LLCs with bylaws and membership that can be recorded on the blockchain. In doing so, the RMI secured its place in history as the first sovereign country in the world to allow DAOs to register as legal entities recognized by the international legal system.

Full sovereignty on the international stage, unlike Wyoming, which is subject to the federal laws of the U.S.

Specific carve-outs for DAOs in their laws, unlike countries like the Caymans and Switzerland.

A fast-moving, adaptable legislative process that can keep up with evolving markets.

Giving back to the community

In order to help blockchain-based projects across the world that wish to be legally recognized on the global stage, Shipyard advised and supported the Republic of Marshall Island (RMI)’s local government to create MIDAO.

This non-profit is founded to simplify the incorporation process for DAOs in the RMI while ensuring full compliance. MIDAO helped steward Shipyard’s recent DAO incorporation process, and we expect many other organizations to follow in Shipyard’s wake.

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