Utah’s DAO Act: A Legal Framework for Decentralization

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Utah has positioned itself ahead of other states by passing the Utah DAO Act (HB 357). Effective January 1, 2024, this legislation grants decentralized autonomous organizations (DAOs) legal recognition as Limited Liability Decentralized Organizations (LLDs), providing them with corporate personhood and limited liability protections.

Unlike traditional LLCs, DAOs operate autonomously through smart contracts—self-executing agreements encoded on blockchain technology—and are governed by collective decision-making rather than centralized management.

To qualify for registration, DAOs must meet specific technical criteria, including deployment on a permissionless blockchain, public access to their code, and implementation of dispute resolution mechanisms. This legal clarity aims to reduce risks for participants while allowing DAOs to enter legally binding contracts and manage assets transparently. With such a regulatory framework, Utah has created an ecosystem that attracts blockchain-based startups and sets it up to be a hub for decentralized finance (DeFi) and other DAO-driven ventures.

iN8 Network: A Decentralized Business Ecosystem

Perhaps the most fitting champion of Utah’s burgeoning DAO ecosystem is iN8 Network, a decentralized autonomous organization that integrates blockchain technology with novel business models. iN8 Network oversees the marketing, sales, and distribution of technology products and services while creating a global community of founders and ambassadors. Participants join the network through NFT-based memberships that grant voting rights, token rewards, and access to benefits such as referral programs and productivity tools.

The organization’s tokenomics model is supported by membership sales and royalties from its sister company, iN8 Tech. This tech startup develops privacy-focused cloud computing solutions, including remotely managed servers and enterprise storage systems.

Combining decentralized governance with high-demand technology products, iN8 Network shows how DAOs can wield Web3 principles with real-world economic opportunities. The project’s Cloud X program enables micro-entrepreneurs to own cloud infrastructure remotely, allowing individuals to participate in the lucrative data economy.

Decentralized Technology as an Economic Catalyst

The rise of DAOs like iN8 Network shows the power of decentralized technologies in reshaping economic power dynamics. With global data processing generating hundreds of billions annually, initiatives that merge blockchain governance with tokenized assets are creating new pathways for wealth distribution. Allowing individuals to own stakes in cloud computing infrastructure or participate in decentralized decision-making allows these models to open access to emerging tech markets.

As Livia Fisher-Kane, Chief Strategist at iN8 Network, aptly noted: “For the first time in history, the most valuable assets—data and computing power—are man-made and man-powered. Organizing the right demographics to channel this value is a smart business move.

A Blueprint for Decentralized Entrepreneurship

Utah’s strategic methodology behind DAO legislation has allowed projects like iN8 Network to thrive. Combining legal recognition with the latest technology, these initiatives demonstrate how decentralized governance can unlock new economic opportunities while enabling global participation. As DAOs become more widespread, integrating with AI and quantum computing could enhance their scalability and efficiency.

This evolution suggests a future where decentralized organizations become the standard for digital-first enterprises, reshaping how people think about business organization and value creation in the twenty-first century.