Introduction
The US-state of Wyoming is famous for aspects as economic freedom as an attractive place for entrepreneurship and for easier regulations regarding taxation, finance and business operations. For example, the Limited Liability Company (LLC) was established in Wyoming before becoming common in other parts of the USA.
At the moment, Wyoming is in a process of establishing itself as “a new Delaware” and a hub when it comes to cryptocurrencies, blockchain, and overall decentralized economic transformation. This development makes an interesting case for SEEDS community initiatives and organizations. As the SEEDS community grows so will the number of businesses and economic organizations, while places like Wyoming already enable possibilities for official registration, for example decentralized human organizations.
Wyoming – “the crypto-state”
In recent years, Wyoming has established itself as a “crypto-friendly” state. Similar developments have taken place earlier in Delaware, known as a “tax-haven”, presenting itself as a hub for blockchain and cryptocurrency entrepreneurs. Since Delaware is losing its former status and popularity among crypto and blockchain enthusiasts, Wyoming is now taking over this status since its lawmakers passed 13 laws enabling individuals, businesses, and banks to operate on crypto-currencies like Bitcoin over the course of 2018-2020.
Many cryptocurrency users, investors, and enthusiasts who value privacy and anonymity are all attracted to Wyoming because of state laws that in practice allow for the formation of an LLC without listing or disclosing the names of the members of the LLC in any public record. The recent “Wyoming blockchain laws” are now contributing to new attractions and interests for business operations in the state. Therefore, there are many cases of businesses being attracted to Wyoming from others parts of the USA and also from other parts of the world.
Wyoming Crypto Law
Wyoming Crypto Law means that blockchain-based assets are categorized as three kinds of property assets: digital securities such as investment contracts, digital consumer assets such as utility tokens, and virtual currencies such as Bitcoin and Seeds. The law allows companies to operate on cryptocurrencies since an individual who develops, sells, or facilitates an open blockchain token is not subject to specified securities and money transmission laws.
Basically, Wyoming’s lawmakers have been focusing on legalizing and making rules for decentralized economic development where new types of organizations can be created with bottom-up and automated functions such as in the case of Kraken that is functioning as “Crypto and Bitcoin bank”.
Thereby, due to Wyoming’s political situation regarding decentralization, many cryptocurrency users, investors and enthusiasts who value privacy and anonymity are attracted to Wyoming because of state laws enabling operations via Decentralised Autonomous Organisations (DAO). DAO functions as a more transparent, democratic and dynamic form of business than some older, more established types of companies.
For example, DAO does not need a central entity as a medium-sized company or a multinational company. Instead, DAOs most often use a smart contract with hard-coded rules to guide their governing processes, which function by using voting rights instilled in specialized cryptocurrency tokens.
DAOs and DHOs
Since DAOs are able to register easily in Wyoming compared to most other places around the world, it means that Decentralised Human Organisations (DHO) are recognized as a legal form of business and that digital tokens are excluded from being considered a form of securities, thus enabling those tokens to function as money. A DHO–such as in Hypha and soon others within the SEEDS ecosystem–is a similar type of decentralized organization type as a DAO since DHOs are operating in similar ways as cooperatives and democratic economic associations.
Compared to DAOs that are focusing on “automating humans” from work, the DHOs are focusing on making work easier for humans by automating and delegating tasks via democratic governance where all members are having equal voting rights. Also, the idea is that DHO is not consisting of hierarchies with bosses and workers, but of members with different roles and interactions depending on tasks and situations.
DHOs such as Hypha within the SEEDS community function via role-creation and smart contracts with hard-coded rules to guide their governing processes, which function by using voting rights instilled in specialized cryptocurrency tokens.
Also, DHOs are not only about promoting and conducting easier technical aspects such as using blockchain and voting delegation. It is also about social aspects by making it easier for humans to engage in co-creative and meaningful ways via the development of symbols, stories and sustainability that can be applied in local communities and economies.
With DHOs, it is easier to make businesses more humanistic and socially oriented when it comes to the facilitation of human well-being and climate transformation.
Wyoming as a future place for SEEDS established operations?
Since DHOs are a popular topic among SEEDS citizens, there will probably be cases of SEEDS-based DHOs being registered in Wyoming in the future. This is mainly because as the SEEDS is growing itself so will the numbers of DHOs grow as well leading to the overall SEEDS economy becoming more developed and integrated with other functions within the community.
Thereby, Wyoming’s legalization of cryptocurrencies, blockchain, and decentralizing economy offer similar rights and opportunities as the SEEDS community is promoting and aspiring towards. It is only a matter of time such as during 2022 and 2023 until a certain number of SEEDS-based DHOs will establish themselves officially in places such as Wyoming.
