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