The operational mechanisms of Wyoming DAO LLC and MI DAO LLC are key to understanding for those considering these legal structures for their decentralized autonomous organization (DAO). From governance principles to governance protocols, let's dive into how Wyoming DAO LLC and MI DAO LLC work and how they provide decentralized governance.

Governance structure

As with Wyoming DAO LLC, MI DAO LLC can adopt either member-based governance or algorithmic governance. In member governance, similar to traditional LLCs, the decision-making authority is vested in the members. In algorithmic governance, the management functions are encoded in a smart contract, following the principles of the classic DAO model.

Regardless of the chosen governance model, clarity on governance methods should be described in the charter. It is important to note that members usually do not have any debt obligations to the DAO LLC, which provides them with more autonomy in their business activities.

Decentralized management mechanisms

The decentralized governance within Wyoming DAO LLC and MI DAO LLC is largely defined by the articles of incorporation and smart contracts, which effectively act as an operating agreement. However, the operating agreement may supplement these documents unless otherwise provided.

In an algorithmically controlled DAO LLC, the effectiveness of decentralized governance depends on the ability to update the underlying smart contracts. While the charter and operating agreement set the parameters for governance, conflicts between provisions are resolved based on hierarchical precedence, with smart contracts usually taking precedence over conflicting provisions in the charter.

To ensure coherence and consistency in governance provisions, it is necessary to carefully build governance protocols in all constitutional documents of your DAO LLC, including smart contracts, articles of incorporation, and operating agreement.

Wyoming LLC and MI LLC registration process for DAOs

Formation of a Wyoming DAO LLC and MI DAO LLC involves either creating a new legal entity or converting an existing LLC into a DAO LLC by amending its articles of incorporation to include the special statements required by the relevant rules.

The formation documents, including the articles of association, must be submitted to the secretariat for registration. It is important to note that the person establishing the DAO LLC does not have to be a member of the DAO LLC. In addition, each DAO LLC must appoint a registered agent to receive service of process.


Both jurisdictions, Wyoming and the Marshall Islands, are attractive options for establishing a DAO LLC, providing investment advantages, procedural simplicity and management flexibility. However, the choice between them depends on the specific needs and goals of your project. Contact Blocons for detailed advice and assistance in setting up your DAO Legal Wrapper in the jurisdiction of your choice.

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