RAK DAO unveils DARe legal framework for DAOs in Web3 expansion

October 22, 2024
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RAK DAO unveils DARe legal framework for DAOs in Web3 expansion

Photo credit: CQF-Avocat/Pexels

In a move that cements its role as a global leader in Web3 innovation, RAK Digital Assets Oasis (RAK DAO), a Free Zone dedicated to digital asset companies, has unveiled its DAO Association Regime (DARe). 

Announced on October 22, 2024, this initiative introduces a structured legal framework for Decentralized Autonomous Organizations (DAOs).

The DARe framework is available in two tailored models—Startup DAO and Alpha DAO—catering to the specific needs of Web3 projects. The Startup DAO model is designed for emerging projects with fewer than 100 members, offering a flexible regulatory environment that supports growth. Meanwhile, the Alpha DAO model is aimed at more mature DAOs with treasuries exceeding $1 million, providing the capacity to scale operations seamlessly.

In the press release, Dr. Sameer Al Ansari, CEO of RAK DAO, emphasized the bespoke nature of the new regime, stating, “This DAO regime, crafted by Web3 natives and tailored to the specific needs of the Web3 industry, offers all the essential features DAOs require within a legal wrapper. 

This includes a separate legal identity with limited liability for founders, contributors, and members, as well as legal clarity, tax optimization, and the operational structure necessary for long-term success.”

The new framework not only offers DAOs the ability to interact with the off-chain world—such as opening bank accounts and owning assets both on- and off-chain—but also enhances their credibility among peers, members, and investors.

 Luc Froehlich, CCO of RAK DAO, highlighted that DARe is a pivotal step in building a global hub for the blockchain and digital assets ecosystem.

“The introduction of DARe represents a stepping stone in our journey towards establishing a global hub for the blockchain and digital assets ecosystem,” Froehlich said. “By offering a structured legal framework, we enable DAOs to interact with the off-chain world and raise their credibility among investors.”

With DAOs playing a crucial role in the Web3 economy, RAK DAO’s framework provides the necessary legal structure and credibility for projects to flourish. 

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