Ras Al Khaimah Digital Assets Oasis (RAK DAO), the world’s first Free Zone dedicated to digital asset companies, has introduced the DAO Association Regime (DARe), a pioneering legal framework tailored for Decentralized Autonomous Organizations (DAOs). This initiative strengthens the UAE’s leadership in Web3 innovation and solidifies RAK DAO’s position as a global hub for blockchain and digital assets.
DARe offers two distinct models, Startup DAO and Alpha DAO, catering to different stages of Web3 projects:
- Startup DAO is designed for early-stage projects with fewer than 100 members, providing a flexible regulatory environment to promote growth.
- Alpha DAO targets more mature DAOs with treasuries over $1 million, enabling seamless operational scaling.
Dr. Sameer Al Ansari, CEO of RAK DAO, commented, “This DAO regime, crafted by Web3 natives and tailored to the specific needs of the Web3 industry, offers all the essential features DAOs require to have within a legal wrapper. These include a separate legal identity with limited liability for founders, contributors, and members. It also provides the legal clarity, tax optimization, and operational structure necessary to support the long-term success of DAOs. Moreover, this initiative reflects the UAE’s and RAK DAO’s commitment to embracing cutting-edge technologies and supporting the blockchain ecosystem”
Luc Froehlich, CCO of RAK DAO, highlighted: “The introduction of DARe represents a stepping stone in our journey towards building a global hub for the blockchain and digital assets ecosystem. By offering a structured legal framework, we enable DAOs to interact with the off-chain world, such as opening a bank account and owning both on- and off-chain assets. This legal wrapper will also allow DAOs to signal and raise their credibility amongst peers, members and investors.”
As DAOs become increasingly important in the Web3 economy, RAK DAO’s DARe framework provides the legal backing and legitimacy needed for these organizations to grow. The initiative elevates the UAE’s status as a hub for digital asset companies, setting a new global standard for supporting decentralized organizations.
More details about DARe and its potential impact on the future of DAOs will be explored at RAK DAO’s event this Friday, where industry leaders and entrepreneurs will gather to discuss the next steps for DAO and Web3 development.
