The Otonomist — March 2021 Wyoming Special
Welcome to the March Wyoming Special of The Otonomist. Best known for its national parks, crypto cognoscenti also know Wyoming for its frontier blockchain laws and emerging digital asset infrastructure. In this issue, we talk about why a trust in Wyoming works particularly well if you’re based outside the U.S., and invite you to join a running thread on its new “DAO Bill”.
Have a good rodeo!
- Han, Founder & CEO, Otonomos
Incorporate Faster Than Your Shadow: Use Your Ethereum Wallet to Spin Up an Instant Wyoming LLC on OtoCo.io
Our OtoCo company assembler launched only a couple of months ago. Since, almost 200 onchain LLCs have been created in both Wyoming and Delaware.
Simply connect your Ethereum wallet and for a one-time payment of only 39 DAI (+ Ethereum gas fees) your connected wallet will control a real-world LLC.
Once spun up, you can use the same wallet to:
- Securely create a crypto asset wallet in the name of your LLC;
- Add multi-sig using Gnosis-Safe technology and get an .eth address for your company’s crypto wallet;
- Instantly spin up an ERC-20 token and send it out from within your company Dashpanel.
NEXT! In our next release (end of March), we are adding encrypted messaging on blockchain for all communications related to your entities, and are providing each user with decentralized file storage space.
The Wyoming DAO Bill: How Good Intentions May Result in Bad Outcomes
We are still making up our minds whether the recently approved Wyoming “DAO” legislation is on balance good or bad.
At first sight, legislation that codifies a real world nexus between a DAO and an LLC may look like a godsend to OtoCo and its users.
However, i.a. Gabriel Schapiro called Wyoming’s LAO law “badly drafted prescriptivist technophilic legislation” whilst Preston Byrne suspects the bill was “ tailor-made to fit one business’ legally weird offering: the “LAO” product built by ConsenSys’ OpenLaw “spoke.” “
Is having a DAO law worse than having no law? What does the DAO Bill add that contract law cannot provide? Join the conversation today in our Road to OtoCo Telegram group channel.
The Wyoming Trust as the Ultimate Digital Asset Protection Vehicle ($)
Trusts have been around for centuries and are the common law equivalent to civil law foundations.
Trusts generally offer a very high level of protection against lawsuits, creditors, divorces, the government and plain bad luck. In addition, they are key to succession planning.
A Wyoming Asset Protection Trust goes a step further than most other trust jurisdictions by allowing you to settle a trust anonymously and protect your assets without losing control, whilst coming in at half the cost.
This makes the Wyoming Trust a viable alternative to hold and manage crypto, especially for non-U.S. grantors.
Paying subscribers to The Otonomist can access the full post to read how and access our 62-page template Trust Agreement here.
Webinar: Everything You Always Wanted to Know About Setting Up a Crypto Hedge Fund (But Were Afraid to Ask)
On Tuesday 30 March at 8 a.m PST // 11 a.m. EST // 4 p.m. London // 5 pm CET we are hosting a live Webinar to answer any questions you may have about how to set up a crypto hedge fund. For the price of a ramen (US$ 16, paid in crypto), you will get the inside on:
- Do I actually need a fund if I only manage proprietary capital and some friends and family money?
- What’s a good setup if I only have US investors? At what point do I need an offshore fund like the big boys?
- Are there good crypto fund administrators and what do they typically charge? How about outside custodians?
- How do I take subscriptions in crypto? How will my investor documents look like and how much do they cost? How can I avoid legal boobytraps?
- What about lock-ups, redemption notices and frequency, fee structures? What terms will make my fund more attractive to investors without shooting myself in the foot?
Paying subscribers to the Otonomist will be emailed a FREE webinar link.
The Otonomist Swiss Special: Don’t Get Tangled in Switzerland
Read our April Swiss Special in next month’s Otonomist, with a special feature on the Swiss Association as an alternative to its Foundation, only for paying subscribers.
Receive The Otonomist in your inbox every third Thursday of the month.
Originally published at https://otonomos.substack.com.