tl;dr: Creating a bridge between the world of crypto and the world of nation-states, Vermont forges ahead, creating a welcoming environment for DAOs that want to have “real world” legal status.
There is now an LLC, registered in Vermont, that runs entirely on the Ethereum blockchain.
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Over a year ago, the governor signed a bill, and a few weeks ago, the first “BBLLC,” Blockchain-based LLC was formed.
The company is called dOrg LLC. It is a DAO (Decentralized Autonomous Organization) that specializes in software development and it will pay its state taxes in crypto (though accountants will have to convert to USD).
Unlike traditional organizations that have written by-laws and policies which are executed by individuals, the dOrg’s governance, including rules, compensations, and voting power are all secured and executed by a blockchain.
Though it seems like a small step, I think this is potentially analogous to a pebble that touches off an avalanche.
Organizations that run on blockchains and, in particular, organizations that run on DAOstack (disclosure: advisor) are going to be orders of magnitude more cost-effective to operate and more agile, particularly at scale.
It will take a while, particularly while so many engineering and regulatory issues remain open.
However, I think it’s a really big deal.
The World’s First Blockchain-based, LLC Sets Up Shop in Vermont was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.