BeethovenX DAO, the decentralized autonomous organization of community-driven DEX and DeFi platform, BeethovenX, has passed a proposal to create a member-managed non-profit limited liability company (LLC) under the laws of the Republic of the Marshall Islands (RMI).
The proposal was passed on December 2 after garnering about 85% of the community’s support. Moving forward, BeethovenX DAO will retain the services of MiDAO to assist in forming the entity and thereafter serve as the registered agent for the LLC.
This proposal and the formation of the DAO’s RMI NP LLC are excellent and necessary steps to establish a real-world entity that will assist the DAO in advancing our Ludwig principles of decentralization and governance and enable the DAO to implement its on-chain and off-chain activities.
In addition to approving and consenting to the MiDAO engagement letter to spearhead the process, the proposal also authorizes the use of $15,000 in USDC from the treasury for several purposes. $4,500 will go to appointing MiDAO and another $4,500 upon issuance of the charter for the NP DAO LLC. Meanwhile, $1,000 and $5,000 have been earmarked for second-year and third-year registration fees, respectively.
The RMI’s 2021 NP LLC amendment to its 2020 Non-Profit Entities Act and 1996 LLC Act has made it attractive to DAOs. The amendment allows non-profit limited liability companies, including DAOs, to establish and amend governance, as well as track membership through smart contracts on a blockchain. “This means the governance and operations of the NP LLC may be set forth in a smart contract on a distributed ledger and governance votes may be executed via a smart contract,” a Google document of the proposal said. The likes of AdmiralDAO, Vanline, and Dope DAO, have already formed legal entities or are in the process of setting this up in RMI.
Adam Miller, CEO of MIDAO сommented that the "Marshall Islands is the best jurisdiction for DAOs to consider incorporating. MIDAO is thrilled to have the opportunity to guide BeethovenX DAO through the corporate entity formation process. Every DAO should seriously consider incorporating, and the Republic of the Marshall Islands offers the best all-around option as a location to register your DAO. Not only does it legally recognize DAOs through special legislation, but they broadly believe in decentralization in the Marshall Islands on a business, governmental, and fundamental level."
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