CATAWBA DIGITAL ECONOMIC ZONE ISSUES PROPOSED REGULATION ON DAOS

The Catawba Digital Economic Zone, the 1st jurisdiction in the US for web3 & fintech, issued a Notice of Proposed Rule on Decentralized Autonomous Organisations

ROCK HILL, SOUTH CAROLINA, UNITED STATES, August 12, 2022 /EINPresswire.com/ — This Notice was released after integrating public comments from the Zone’s Advanced Notice of Proposed Rulemaking in June. This Notice of Proposed Rule gives the public a final opportunity to comment on the draft DAO regulation (draft here) before the Zone Authority Commissioners vote.

We welcome feedback on the draft DAO regulation via forms (https://airtable.com/shrMXdyAPbkTsWvZs) on the CDEZ’s Zone Authority website, email (daos@zoneauthority.io), or on the CDEZ Discord server (https://discord.gg/cdez). The comment period ends on September 10th, 2022.

The draft regulation provides a “menu” option for DAOs to be regulated as two different entity types: Limited Liability Companies (LLCs) or Unincorporated Non-Profit Associations (UNAs). The LLC model draws inspiration from Wyoming’s 2021 law-regulated DAOs, with similar responsibilities, capabilities, and technologically specific clarifications.

The UNA option is unique and would be the first of its kind, globally. UNAs provide the flexibility that DAOs crave, governing themselves almost exclusively through their “governing principles”, rather than statutory requirements. These can be verbal, written, or even software-based rules. Unlike LLCs, UNAs do not require a registered agent. Yet, they are still protected by limited liability. And while the original UNA is mostly for non-profit purposes, the regulation leverages the UNA law’s existing exemptions to allow UNA DAOs to provide compensation, including through staking.

ABOUT THE CATAWBA DIGITAL ECONOMIC ZONE’S ZONE AUTHORITY
The Catawba Digital Economic Zone 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. It is in the territory and under the jurisdiction of the Catawba Indian Nation of South and North Carolina.

Press Kit: Press releases, and logos (https://drive.google.com/drive/folders/1tUfrRqlKzQEE59jaHDs2KgsgU7I1Iu6N)

Sam Trimnal. Zone Authority Chairman.
Catawba Digital Economic Zone.
sam.trimnal@zoneauthority.io