A Vision for Crypto-friendly Jurisdiction

Cyber Republic DAO LLC, an entity previously incorporated in Delaware, U.S., has strategically repositioned itself by migrating to the Marshall Islands. This move is driven by a fundamental principle: seeking an environment where the legal framework is not just reactive to technology but proactive in embracing the new digital era.

The U.S., while technologically advanced, presents a legal landscape fraught with complexities and ambiguities concerning digital currencies and decentralised autonomous organisations (DAOs). The Cyber Republic’s exploration for a jurisdiction that not only understands but advocates for the underlying ethos of cryptocurrency has led to this big shift. The Marshall Islands, contrasting the U.S., provides a pioneering legal infrastructure that explicitly recognises and supports the unique operational needs of DAOs.

A Quick Cyber Republic DAO Run Down

A DAO, or Decentralised Autonomous Organisation, is an organisational structure built on blockchain technology, where decisions are made from the bottom up, governed by consensus rather than a central authority. The Cyber Republic (CR) is a DAO that specifically governs the Elastos ecosystem, managing its development and community assets through a system of proposals and community consensus.

The Cyber Republic employs a governance system where community members holding ELA, Elastos’ currency secured by Bitcoin’s hash rate since 2018, can participate in decision-making processes. It involves:

• Electing Council members yearly through democratic voting to act as proposal managers and decision-makers.
• Submitting, voting on, and implementing proposals that guide the ecosystem’s development.
• Using blockchain technology to ensure all actions are transparent, immutable, and verifiable.

The Cyber Republic promotes a robust, fair, and engaged community by decentralising power, encouraging contributions, and managing resources through collective decision-making, ensuring all members influence the direction of the Elastos ecosystem. To learn more, you can read the CR whitepaper here and visit Elastos’ website.

The Marshall Islands’ Progressive Legislation

Led by Cyber Republic Council Member Sasha Mitchell, with support from Council Member Nenchy, CR Proposal 144 was passed on January 24th, culminating three months of effort to establish this new entity working with MIDAO. Here are the core reasons for selecting the Marshall Islands:

1. Strategic Location and Sovereignty: Located between Hawaii and Australia, the Marshall Islands leverages its sovereignty and UN membership to set its own policies, making it an attractive location for crypto-focused laws and activities.
2. Global Leadership in Crypto Legislation: The enactment of the Decentralised Autonomous Organisation Act of 2022, along with previous crypto-friendly laws, places the Marshall Islands at the forefront of global crypto legislation, demonstrating a progressive stance towards digital currencies and blockchain technology.
3. Innovative Legal Framework: As the Marshall Islands passed a DAO law, which is one of the first of its kind, it allows for the legal recognition of DAOs as entities that can interact with both the on-chain and off-chain legal systems. This law positions the Marshall Islands as a forward-thinking jurisdiction in the crypto space.
4. Support for Crypto Entrepreneurs: Over 100 DAOs have been established in the Marshall Islands, showing a supportive environment for crypto entrepreneurs, founders, and investors seeking a competitive jurisdiction.
5. Experience with Digital Currencies: The Marshall Islands’ history with digital currencies, including the Sovereign (SOV) as legal tender, despite regulatory and implementation challenges, showcases their long-term commitment to integrating crypto into their economic system.
6. Criticism and Validation: The initial criticism from international financial institutions and subsequent recognition of the importance of digital currencies highlight the Marshall Islands’ pioneering role in the crypto domain.
7. Cryptocurrency and DAO Advantages: The DAO law facilitates web3 and crypto projects by addressing common legal barriers, such as anonymity and decentralised governance, providing a more suitable legal structure for DAOs compared to traditional entities.
8. Economic Diversification: The government views the digitalisation of its economy through laws like the DAO law as a means to achieve economic stability, considering its limited physical resources and the challenges posed by climate change.
9. Global and Local Benefits: The DAO framework not only benefits the global crypto community by offering a compliant and progressive jurisdiction but also promises economic benefits and technological advancement for the Marshall Islands, positioning it as a key player in the digital economy.

But don’t just take our word for it; watch Balaji Srinivasan, the former Chief Technology Officer of Coinbase, former general partner at the venture capital firm Andreessen Horowitz, and author of “The Network State,” share his thoughts on the Marshall Islands in this video here!

A New Era in Blockchain Governance

The relocation of Cyber Republic DAO to the Marshall Islands marks a significant pivot in the structure of digital organisations. It’s a move that reflects the core values of Elastos—decentralisation, transparency, and democratic participation. This transition is supportive as the Cyber Republic heralds the DAO’s fifth council year, powered by the collective voice of its global community. This evolution in governance is not merely an administrative change but a demonstration of a system where decision-making is distributed across its membership, each of whom holds a stake in the direction and success of the DAO.

Strategic Relocation and Legal Empowerment

This strategic relocation underlines a broader shift in the cryptocurrency landscape, where the influence of traditional jurisdictions like the U.S. is balanced by smaller states through innovative legislation. The Marshall Islands, by welcoming the Cyber Republic, becomes a pivotal hub in the digital economy. This proactive step towards a crypto-friendly future empowers the DAO with the legal authority to forge binding agreements, opening doors to growth opportunities that harmonise individual and collective goals, such as moving forward on Proposal 151 on Market Making and 152 on Strategic Investment. It’s a forward leap that not only aligns with the vision of Elastos’ founder Rong Chen but also stands as a collective achievement for the community, setting a course for the future of Web3 and decentralised digital ecosystems. Congratulations to the community, the Cyber Republic and the CR Council on this milestone!

In a few days, the Cyber Republic Council will begin its 5th year elections! You can be a part of the decision-making that drives our community forward. Follow us for the latest updates on upcoming elections information and guidance.