DOrg, a company that builds DAO-related software founded by Ori Shimony, Asgeir Sognefest, and Jordan Ellis, has created what it calls the first Limited Liability Decentralized Autonomous Organization or DAO, a legal way to “reference blockchain code (smart contracts in our case) as the legitimate source of authority for their company’s operations and governance.”

The process melds the complexities of a DAO with the legal protections afforded to limited liability companies.

“After deploying its DAO to the Ethereum blockchain, dOrg formed a Blockchain-Based Limited Liability Company (BBLLC) in Vermont, dOrg LLC. By linking the DAO to this BBLLC, the DAO has official legal status, allowing it to enter contractual agreements and offer participants liability protections,” wrote the founders in a release.

The company is a cooperative of blockchain devs that builds DAO-related software. They claim that with this new legal framework users can create a legally registered DAO as easily as creating a “social media account.”

“We realized that Vermont’s BBLLC law was unique in carving out the option for companies to reference blockchain code (smart contracts in our case) as the legitimate source of authority for their company’s operations and governance,” said Shimony. “The Operating Agreement establishes that the Company will only accept requests to perform services for Clients, allocate work and renumeration to Participants, add new Participants, and distribute voting rights through the DAO’s decision-making engine.”

“We worked extra diligently to make sure that all legal agreements were very lightweight yet created no backdoors or special privileges that could short-circuit the authority of the DAO,” he said.

The team plans to share the process so anyone can create legally licensed DAOs. While they are a DAO software dev shop, it an intestine move that could make the creation of decentralized organizations easier and safer for users and investors.

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