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KlimaDAO Hires Tusk Strategies to Push Congress to Write DAOs into Law CryptoBlog

The KlimaDAO announced on Friday that it was working with politicians to provide a legal framework for DAOs in the Lummis-Gillibrand Responsible Financial Innovation Act.

KlimaDAO legal team said Decrypt that the DAO had several conversations with staff members of the Sens offices. Cynthia Lummis and Kirstin Gillibrand since May.

The bill was introduced in the Senate in June and published on Github gather feedback from the technical community. The bill aims to bring clarity to the crypto industry, outlining how digital assets should be taxed and how they should be regulated by different government agencies.

It also includes definitions of what virtual currencies are, as well as other terms that have yet to be established by lawmakers, including DAOs.

Also called a Decentralized Autonomous Organization, a DAO is a blockchain-based management structure in which members make decisions by voting with governance tokens, instead of relying on a corporate hierarchy to determine how funds are allocated.

KlimaDAO hopes the legislation will help legitimize its work by offering carbon-backed tokens that can be used to offset emissions. In a blog postKlimaDAO wrote, “We are honored to have the chance to work with Senators Gillibrand, Lummis and their staff to help shape such an important project.”

Sam Emmes, member of KlimaDAO’s strategic partnerships team, said Decrypt that the organization took the help of lobbying firm Tusk Strategies to provide its views to lawmakers.

The company, owned by a prominent political strategist and venture capitalist Bradley Defensehas “represented and invested in companies at the forefront of digital currency” for years, according to his website.

Tusk Strategies was chosen in part because of its past work with OlympusDAO, KlimaDAO said Decrypt.

Under this framework, DAOs would be classified as business entities, supplementing the 1986 Tax Code. The proposed legislation would extend the classification to DAOs from 2023.

The addition defines DAOs as organizations that use smart contracts, computer protocols that operate automatically, “to perform collective action for a business, commercial, charitable or similar entity,” according to the KlimaDAO blog.

The new definition also states that DAOs operate under a governance structure that is performed “primarily on a distributed basis,” meaning that members of a DAO make decisions by interacting with the public ledger of a protocol.

The definition also clarifies what actions taken by a DAO would not be considered a form of commercial activity and would be tax-exempt, which includes raising funds for charitable purposes and staking and mining digital assets. .

In June, Polygon, the Ethereum scaling platform, announcement he had achieved carbon neutrality by withdrawing $400,000 in carbon credits using KlimaDAO. The company said the move offset 104,794 tonnes of greenhouse gases, which is the network’s carbon footprint since it went live.

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