From Nasdaq:

Balaji Srinivasan suggests using Decentralized Autonomous Organizations (DAOs) on Ethereum and Solana blockchains as alternatives to traditional incorporation methods, following Elon Musk’s legal challenges in Delaware. Recent legislation in Wyoming, Tennessee, and the Marshall Islands recognizes DAOs as a modern approach to corporate structure, using blockchain technology for governance.

Srinivasan highlighted that DAO laws have been passed in the US and outside, presenting a new type of fiat/crypto bridge. He advocated for leveraging DAOs as a transparent and democratic business model, avoiding complexities encountered in traditional incorporation methods. The incorporation of companies in states like Wyoming and Tennessee, as well as on blockchain platforms like Ethereum and Solana, has the potential to offer viable alternatives.

A Delaware judge invalidated a $55.8 billion pay package awarded to Elon Musk in 2018 by Tesla. Musk expressed his discontent, advising not to incorporate a company in Delaware, following the court’s decision. The ruling places Musk’s 2018 compensation agreement under scrutiny after being challenged by an investor on grounds of conflict of interest and misleading information by Tesla.

Musk’s loss in his attempt to back out of purchasing Twitter and a corresponding $25 billion drop in the company’s valuation highlights the friction Musk faced in Delaware and his dissatisfaction with the legal challenges he has encountered in the state.

Overall, the news highlights potential alternatives to traditional company incorporation, with blockchain platforms like Ethereum and Solana and states like Wyoming and Tennessee emerging as viable options. Additionally, Elon Musk’s legal challenges in Delaware have raised questions about the suitability of the state for corporate governance.



Read more: Elon Musk’s Delaware Setback Opens Door For Srinivasan’s Ethereum, Solana DAO Proposal