CORE MAGAZINE April 2016 | Page 34

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The “FUBU” or for us by us Court for the Fortune 500 and all of the rest of us wannabes.

Anarcho-capitalists, blockchain enthusiasts, the curious, the entrepreneurial, and increasingly just about everyone in the know is raising their own flags by launching Decentralized Autonomous Organizations or DAOs not to be necessarily confused with Daoism. Apart from Bitnation companies like the startup Slock.It has embraced this form of stateless entity formation. The concept and idea of stateless corporations and entities aren’t new, profound, or even revolutionary. In 2013 a company was formed by J.B. Allen called First Blockchain Incorporated. Stateless entities, in general, are not a new phenomenon. Just ask the Romani people of today or the Jews prior to 1948. The Kurds are another prime example and are acting in several countries rather autonomously in spite of inept centralized capitals hundreds of kilometers away from their homeland.

Fundamentally individuals either have the right to contract, to assemble peacefully including for commercial purposes or they do not. Most of the time sole proprietorships and unincorporated businesses are permitted to carry on without formal registration even in the developed world.

Unfortunately, such operations are seldom scalable and put the principals of the business at greater risk for personal damages than had the enterprise limited its liability to the amount of capital its owners put into it. Why should a government have a monopoly on the ability to provide this kind of personal protection? At least, if there is a right to contract. Why can’t individuals draft agreements among or between themselves to accomplish the same goal? Better still why can’t individuals clone bodies of law? But somehow sun-drenched tropical paradises with pearl white sandy beaches and crystal clear waters can do so with impunity.

If Bitcoin lets us be our own bank then I propose being your own jurisdiction. In fact, I have done so by forming a DAO of my own for my startup consultancy firm eponymously named. Without further ado, I’d like you to meet the world’s first “Digital Delaware Clone” or DDC which is a subset in the Decentralized Autonomous Organization nomenclature and it is called J X STARR PARTNERS. Unlike most other DAOs including Slock.It or whose assets or tokens are listed on Omni, Counterparty, BitShares, NXT, or elsewhere I have gone further by deliberately modeling my DAO after the grand-daddy of business entities the Delaware Corporation.

This was done when I specifically selected to insert language into my company’s founding document to read “when applicable, feasible, necessary and proper shall adhere to the decorum and precepts of the Delaware General Corporation Law.”