⚖️Legal & Compliance
Legal & Compliance
Axion DAO is one of the first decentralized autonomous organizations in the United States to register under formal DAO legislation. Our legal structure provides clarity, accountability, and long-term viability—helping build a bridge between decentralized finance and real-world governance.
Axion DAO as an LLD (Utah DAO Act)
Axion DAO is registering as a Limited Liability Decentralized Autonomous Organization (LLD) in the State of Utah under HB0357 – the Utah DAO Act, which took effect on January 1, 2024.
This law allows DAOs to gain legal standing similar to an LLC while retaining their decentralized structure. It provides the ability to:
Contract and operate in the real world
Hold and disburse treasury assets
Define member rights and responsibilities
Protect contributors and token holders from personal liability
Register a formal business identity with the State of Utah
🗎 View the Utah DAO Act – HB0357
Axion DAO’s registration enables us to operate transparently and with full legal recognition, enhancing our credibility with partners, regulators, and future institutional collaborators.
Cooperative Structure Overview
In addition to DAO registration, Axion DAO is also adopting a Cooperative legal framework under the Utah Uniform Limited Cooperative Association Act (ULCAA). This allows Axion to define ownership by participation and share profits with stakeholders, not shareholders.
Key Benefits of a Cooperative DAO:
DAO members are owners—not passive participants
Profits may be shared as interest, dividends, or revenue distribution
Governance is member-driven, not top-down
Structure supports fair voting, transparency, and participation
🗎 View the Utah Cooperative Act – Title 16 Chapter 16
This hybrid model makes Axion DAO both legally accountable and community-owned, bridging the gap between traditional finance and blockchain-based governance.
Legal Rights for Members
By becoming a staker and minting a DAO Membership NFT, members are entitled to the following rights under our legal structure:
Ownership Rights
Recognized through AXND stakes
Governance Participation
Granted through DAO Membership NFT
Revenue Sharing
Eligible after stake maturity, distributed via DAO vote mechanisms
Proposal Submission & Voting
Members can propose changes and vote on initiatives
Interest or Dividends
Paid to stakeholders in accordance with Cooperative laws
Liability Protection
Members are protected from personal liability for DAO actions
Legal rights are defined in the DAO’s Bylaws and will evolve with future votes and amendments. The DAO may retain counsel to formalize operating procedures in line with state and federal regulations.
Future Legal Expansion Plans
While Utah offers the most comprehensive DAO legislation currently available, Axion DAO plans to expand legal registration to other blockchain-forward jurisdictions in the U.S. and abroad, including:
Wyoming – DAO Supplement Act (2021)
Vermont – Blockchain-Based LLC Framework
Tennessee – Flexible DAO recognition within LLC structure
International Jurisdictions – Pending legal review
These efforts will allow us to:
Operate across state and national borders
Onboard partnerships requiring registered entity status
Future-proof Axion DAO for compliant financial and business activity
Advocate for legislation that protects DeFi innovation
📌 Next: The Origin Story Begins!
Types of integrations
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