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Recently, Circle expressed: The Solana USDC market cap has grown to more than $3 billion, with more than $38 billion in circulation across all supported chains. Circle Pay is celebrating three years of USDC, and more good things to come.
Aaron Wright, Co-Founder and Professor, Open Law and Cardozo Law School during Episode 40 of the MM with Jeremey Allaire stated about the Emergence of DAOs: We know that crypto is not going to be an island forever. It needs to interact with traditional systems and the thought was that you could use the very flexible LLC structure in the US as a way to wrap a DAO. So, we kind of thought about it at an academic level. It took some time for the tooling to get put in places.
And, then we began to operationalize this with the LAO and some other teams began to operationalize it. A notable example, there is MetaCartel Ventures and there were some earlier experiments to kind of get these movies.
Wyoming just recently passed a bill that kind of validated some of this approach. It basically enables you to set up a DAO. It’s like a subclass of or a subcategory of an LLC, which gives a lot of flexibility in terms of structuring these pooled investment vehicles. I don’t think that structure works for everything for content DAOs, and may be some of these larger open-source protocol Defi DAO you probably are going to need another structure.
We are working on some structures related to that, that we think can work and I think you will hear a little bit more about that. The reasons that these structures are the best-in-class number one, if there is legal entity you are able to handle basic things like tax and accounting. You can get a tax ID number. And, you can also manage risks related to pulling capital together and working together for a common purpose.
Those risks include things like softening obligations related to fiduciary obligations, which are fancy legal words for heightened obligations that you have to other folks that you are working with.
You can waive conflicts of interest if you need to, and you can kind of manage some downside risk, which I think people don’t think about until everything goes sideways. And, then they think about those types of risks quite a bit.
So, with a little upfront planning, you can kind of ensure that these projects are set up for the long run and our hypothesis and our gut.
