1 00:00:00,360 --> 00:00:02,520 Welcome to a new episode of the Network Save podcast. 2 00:00:02,520 --> 00:00:06,120 Today I'm here with Sender and a minister from the Marshall 3 00:00:06,120 --> 00:00:08,960 Islands as well as an entrepreneur who's helped go and 4 00:00:08,960 --> 00:00:10,920 get their new crypto law up and running. 5 00:00:10,920 --> 00:00:14,000 It's a Dow law that allows you to essentially build an 6 00:00:14,000 --> 00:00:17,920 interface between an on chain entity and you know the off 7 00:00:17,920 --> 00:00:21,040 chain legal system. I made a small investment in 8 00:00:21,040 --> 00:00:23,840 this company, My Dow, that's kind of a agent that'll help you 9 00:00:23,840 --> 00:00:26,240 get set up, but they've been operating under their own power 10 00:00:26,240 --> 00:00:27,760 for a while. They've set up more than 100 11 00:00:27,760 --> 00:00:31,040 Dow's in the Marshall Islands. And with me today is Adam 12 00:00:31,040 --> 00:00:36,480 Miller, Minister Joe Bejong and Senator David Paul, all of the 13 00:00:36,480 --> 00:00:38,040 Marshall Islands. And they're going to talk to us 14 00:00:38,040 --> 00:00:40,800 today about the the new Marshall Islands doubt law. 15 00:00:40,880 --> 00:00:43,520 So, Minister, Senator Adam, let's go. 16 00:00:44,240 --> 00:00:45,360 Yeah, sure. Yahweh. 17 00:00:45,480 --> 00:00:50,640 My name is Joe Peja and I'm the newly appointed Minister of 18 00:00:50,640 --> 00:00:53,600 Justice, Immigration and Labor here in the Marshall Islands. 19 00:00:53,880 --> 00:00:58,320 My name is David Paul. I am the the current chairman 20 00:00:58,320 --> 00:01:02,920 for the appropriation committee. We also have here Adam, Miller 21 00:01:03,120 --> 00:01:05,440 and Adam. Can you introduce yourselves? 22 00:01:05,840 --> 00:01:07,200 Yeah. Hey everyone, My name is Adam 23 00:01:07,200 --> 00:01:10,200 Miller and I've been into Crypto and Web 3. 24 00:01:10,200 --> 00:01:12,760 For a while, but. Daos are really my gem, you 25 00:01:12,760 --> 00:01:15,000 know, I really believe that Daos are going to change the way we 26 00:01:15,000 --> 00:01:17,400 organize everything on Earth, people. 27 00:01:17,400 --> 00:01:20,520 Resources and. So my mission in life now is to 28 00:01:20,520 --> 00:01:23,520 help bring Daos to the world. And the way I'm doing that today 29 00:01:23,520 --> 00:01:25,480 is collaborating with the government of the Marshall 30 00:01:25,480 --> 00:01:29,720 Islands to create Web 3 and Daos legal and. 31 00:01:29,720 --> 00:01:32,360 Regulatory frameworks that are better. 32 00:01:32,360 --> 00:01:34,320 Than what exists everywhere else in the world. 33 00:01:35,080 --> 00:01:36,800 Yes, awesome. And that's why we're actually 34 00:01:36,800 --> 00:01:41,040 here today because there's a number of crypto entrepreneurs, 35 00:01:41,040 --> 00:01:46,400 founders, investors who are looking for good jurisdictions 36 00:01:46,400 --> 00:01:49,000 to operate. And the Marshall Islands set up 37 00:01:49,000 --> 00:01:51,680 a new law that may make it actually very competitive. 38 00:01:52,720 --> 00:01:55,160 So, you know, just before we get there, maybe we can just put the 39 00:01:55,160 --> 00:01:57,920 Marshall Islands on the map, kind of help people know where 40 00:01:57,920 --> 00:01:59,760 it is. So it's located in the Pacific. 41 00:01:59,880 --> 00:02:01,280 Maybe we could put up a map on screen. 42 00:02:01,280 --> 00:02:03,880 Great And sender, you know, Minister, do you want to talk 43 00:02:03,880 --> 00:02:05,880 about the Marshall Islands? Tell people who've never been 44 00:02:05,880 --> 00:02:09,680 there what it's all about. The Marshall Islands is located 45 00:02:10,680 --> 00:02:16,160 like 2400 miles southwest of Hawaii and is right in the 46 00:02:16,160 --> 00:02:18,200 middle between the Hawaii and Australia. 47 00:02:18,680 --> 00:02:23,720 The Marshall Islands is is close to about a million square 48 00:02:23,720 --> 00:02:29,760 kilometers of ocean territory. But the land mass is only the 49 00:02:29,760 --> 00:02:35,720 size of Washington DC So you you can imagine it's where we're we 50 00:02:35,720 --> 00:02:39,000 we maybe call a small island nation where we're a big ocean 51 00:02:39,000 --> 00:02:40,960 state. You know, it's tropical all year 52 00:02:40,960 --> 00:02:42,840 round. And you know the Marshall 53 00:02:42,840 --> 00:02:48,400 Islands has over 24 atolls within the Marshall Islands, the 54 00:02:48,400 --> 00:02:51,600 jurisdiction of the Marshall Islands and the population is 55 00:02:51,600 --> 00:02:57,360 around in, in countries maybe around 43,000, but total 56 00:02:57,360 --> 00:03:01,200 Marshallese globally I would say over 80,000. 57 00:03:01,960 --> 00:03:07,200 So it's a very small country and is in, you know, close and 58 00:03:07,200 --> 00:03:09,960 freely associated states with the United States and 59 00:03:09,960 --> 00:03:13,400 independent country, but in close and free associated with 60 00:03:13,400 --> 00:03:15,600 the United States. Awesome. 61 00:03:15,680 --> 00:03:20,520 And you know that million miles of ocean puts you near, you know 62 00:03:20,520 --> 00:03:25,040 several other Pacific islands like Palau I think is nearby 63 00:03:25,040 --> 00:03:27,760 Micronesia right? And some of the other Pacific 64 00:03:27,760 --> 00:03:29,360 islands that are also independent states your 65 00:03:29,360 --> 00:03:30,600 neighbors. That's good. 66 00:03:30,600 --> 00:03:32,640 Also to locate it between Hawaii and Australia. 67 00:03:33,400 --> 00:03:37,400 The thing is as a full sovereign state as AUN member you can set 68 00:03:37,400 --> 00:03:40,520 your own policies. You have passed a new law. 69 00:03:40,920 --> 00:03:44,560 That law is potentially quite interesting for crypto folks 70 00:03:44,560 --> 00:03:46,880 around the world. The the new Marshall Islands, 71 00:03:46,880 --> 00:03:50,600 Dow law and maybe Adam or or Sender. 72 00:03:50,600 --> 00:03:53,480 Maybe you can kind of talk about this, tell us what it's about at 73 00:03:53,480 --> 00:03:55,800 a high level. I'll, I'll just kick it off and 74 00:03:55,800 --> 00:03:58,320 then I'll invite the minister to make a comments and then I'll 75 00:03:58,320 --> 00:04:02,280 have Adam to you know expound on on it. 76 00:04:02,280 --> 00:04:07,120 But basically back in 2022 we enacted what we call the 77 00:04:07,120 --> 00:04:11,640 Decentralized Autonomous Organization Act of 2022, which 78 00:04:11,640 --> 00:04:13,760 is the Dow law. We call it a dialogue. 79 00:04:14,200 --> 00:04:20,839 I mean RMI is not no stranger to to the the Web 3 initiative back 80 00:04:20,839 --> 00:04:23,720 in 2017 or 2018. Sorry. 81 00:04:23,720 --> 00:04:29,680 We the the parliament actually passed the first ever soft the 82 00:04:29,840 --> 00:04:34,160 soft legislation which is make soft as the the soft me 83 00:04:34,160 --> 00:04:40,000 sovereign as the legal tender for the Marshall Islands as a 84 00:04:40,000 --> 00:04:43,960 cryptocurrency and now the law is still in the books but we 85 00:04:43,960 --> 00:04:47,360 have not yet implemented because of many regulatory got 86 00:04:47,360 --> 00:04:52,080 implementation challenges. We thought that the the passage 87 00:04:52,080 --> 00:04:57,280 of these the soft law taught us so much about crypto, the web 88 00:04:57,280 --> 00:04:59,880 three and all of that. You can imagine during that time 89 00:04:59,880 --> 00:05:03,600 when when we were passing it, people were actually Googling 90 00:05:03,880 --> 00:05:08,320 what is cryptocurrency in real town while we were having a 91 00:05:08,320 --> 00:05:12,200 national debate on the floor of the parliament and people were 92 00:05:12,520 --> 00:05:16,000 basically Googling and trying to understand and trying to 93 00:05:16,000 --> 00:05:18,400 understand what does cryptocurrency means. 94 00:05:18,840 --> 00:05:21,520 And it was a very foul moment in the history of the country 95 00:05:21,520 --> 00:05:24,240 because you know, everybody was just trying to understand what 96 00:05:24,240 --> 00:05:27,840 does the the blockchain technology is all about. 97 00:05:27,840 --> 00:05:31,560 And then here we were at that time passing the legislation and 98 00:05:31,560 --> 00:05:35,880 my God, when we passed it, we got so much criticism from like 99 00:05:35,880 --> 00:05:39,920 the the likes of the World Bank, the IMF, the Asian Development 100 00:05:39,920 --> 00:05:42,040 Bank, even the United States Treasury. 101 00:05:42,440 --> 00:05:45,880 They they thought that we were like, you know we went rogue 102 00:05:46,160 --> 00:05:47,880 basically. They thought that we we were 103 00:05:48,000 --> 00:05:52,000 we're losing our minds and we were losing on grip on reality. 104 00:05:52,480 --> 00:05:56,080 But for us at that time we said no, we we knew that was the 105 00:05:56,080 --> 00:05:58,960 future. Now Fast forward to today. 106 00:05:59,560 --> 00:06:04,600 When we went, we went back to the United, the World Bank last 107 00:06:04,600 --> 00:06:06,960 year in October. The only thing that they were 108 00:06:06,960 --> 00:06:08,880 talking about was digital currency. 109 00:06:09,520 --> 00:06:12,640 You know, is easy. You know, three years later, 110 00:06:12,640 --> 00:06:16,360 four years later, people were now talking about you know, 111 00:06:16,360 --> 00:06:20,120 staple coin, digital currency, not so much crypto, but I mean 112 00:06:20,520 --> 00:06:23,520 is within the same ecosystem, right. 113 00:06:24,120 --> 00:06:27,040 But the fact that we were ridiculed, we they thought that 114 00:06:27,040 --> 00:06:29,400 we were crazy. But now everybody's talking 115 00:06:29,400 --> 00:06:31,120 about it's now it's become part of the Main Street. 116 00:06:31,640 --> 00:06:35,800 So that's why we have, we have I vote for the for the Autonomy, 117 00:06:35,800 --> 00:06:39,800 the Decentralized Autonomist Organization Act of 2022 and 118 00:06:40,040 --> 00:06:43,000 we're going to build on it. But the reason why the the 119 00:06:43,000 --> 00:06:45,680 Minister of Justice is part of this is because he's the one 120 00:06:45,680 --> 00:06:47,600 that is actually enforcing this thing. 121 00:06:48,880 --> 00:06:50,360 Well, first of all, that's awesome. 122 00:06:50,600 --> 00:06:54,760 And can you tell us, you know the SOLVE law was 2018, is that 123 00:06:54,760 --> 00:06:56,760 right? Solve stands for store of value 124 00:06:56,760 --> 00:06:59,400 or can you tell tell us what that was? 125 00:06:59,400 --> 00:07:02,280 That was like a building block for the the Dow law that you've 126 00:07:02,280 --> 00:07:05,920 just passed. The solve is is is is 127 00:07:05,920 --> 00:07:08,160 unredeemable. It's not redeemable, but it's 128 00:07:08,160 --> 00:07:11,480 also a legal tender in the Marshall Islands. 129 00:07:11,920 --> 00:07:15,920 There's nothing backing it up. It's basically the the, the 130 00:07:15,920 --> 00:07:20,760 perceived value of it and and actually the the what really 131 00:07:20,760 --> 00:07:25,920 actually gave value to it is actually the technology behind 132 00:07:25,920 --> 00:07:28,160 it that. So that's how the soft concept 133 00:07:28,160 --> 00:07:31,520 came about. So we didn't want it to make it 134 00:07:31,520 --> 00:07:34,760 as if there was a if it was redeemable because you know, 135 00:07:35,560 --> 00:07:37,080 like the dollar is not renewable. 136 00:07:37,560 --> 00:07:40,600 So we wanted to make sure that it is no different than any 137 00:07:40,600 --> 00:07:43,800 other currencies of the world, you know, so. 138 00:07:44,480 --> 00:07:49,200 So we were not far from, you know what other countries that 139 00:07:49,200 --> 00:07:52,680 have their own own currency we're doing, but it was actually 140 00:07:52,680 --> 00:07:56,400 in a digital format so to speak. Very interesting. 141 00:07:56,680 --> 00:07:59,680 So basically you're very one of the very first to do that and 142 00:07:59,800 --> 00:08:03,400 you know El Salvador and you know U.S. states like Wyoming 143 00:08:03,400 --> 00:08:05,720 and Tennessee and so on have also passed, you know, 144 00:08:05,720 --> 00:08:08,880 cryptocurrency and and Dow related laws. 145 00:08:08,880 --> 00:08:11,640 So that's actually happened after that SOB law. 146 00:08:11,680 --> 00:08:14,160 And so you're one of the first sovereigns in the world to do 147 00:08:14,160 --> 00:08:15,000 that. That's really cool. 148 00:08:15,040 --> 00:08:18,240 So that brings us to today. I think that's actually really 149 00:08:18,240 --> 00:08:20,880 awesome history. And you know, one thing that I 150 00:08:20,880 --> 00:08:25,880 was interested in is how did you have the energy to be be a 151 00:08:25,880 --> 00:08:28,760 startup country? Because as a small country, the 152 00:08:28,760 --> 00:08:31,640 good thing is you're nimble. And in theory, you can come to 153 00:08:31,640 --> 00:08:33,400 consensus with a relatively small number of people. 154 00:08:33,400 --> 00:08:35,760 You can make decisions, You can adopt new technologies. 155 00:08:36,080 --> 00:08:38,720 However, you've also got big neighbors and you've got the 156 00:08:38,720 --> 00:08:41,600 World Bank and all these folks who will yell if you do 157 00:08:41,600 --> 00:08:44,760 something too interesting, right, as you mentioned. 158 00:08:44,920 --> 00:08:48,080 So how did you kind of get the energy to be kind of a startup 159 00:08:48,080 --> 00:08:48,760 country? What, what? 160 00:08:48,760 --> 00:08:51,160 How did that happen? To like the Marshallese people, 161 00:08:51,440 --> 00:08:54,440 we're navigating. That's cool. 162 00:08:54,440 --> 00:08:56,640 Yeah, you got You are pioneers to get all the way out to the 163 00:08:56,640 --> 00:08:57,560 middle of the islands there, huh? 164 00:08:57,800 --> 00:08:59,600 Is it our DNA? That's cool. 165 00:09:00,240 --> 00:09:02,640 So that's interesting. It may be interesting for other 166 00:09:02,840 --> 00:09:04,240 kind of tech things in the future. 167 00:09:04,240 --> 00:09:06,320 I don't know, self driving car cities or things like that. 168 00:09:06,320 --> 00:09:07,360 That's actually really interesting. 169 00:09:07,400 --> 00:09:09,800 I should visit actually. In fact, everybody watching this 170 00:09:09,800 --> 00:09:12,040 video should probably go and should they visit the Marshall 171 00:09:12,040 --> 00:09:13,960 Islands? Yeah, absolutely. 172 00:09:14,840 --> 00:09:17,160 Awesome. Are there cruises there? 173 00:09:17,160 --> 00:09:18,200 How? How do you get there? 174 00:09:18,480 --> 00:09:20,320 Is it playing what? How do you, how do you travel 175 00:09:20,320 --> 00:09:23,880 there if you wanted to go there? Well, we have only one airline 176 00:09:23,880 --> 00:09:26,360 service here in the Marshall Islands and that's the United 177 00:09:26,360 --> 00:09:29,080 Airlines. You can come via that that 178 00:09:29,080 --> 00:09:33,040 airline and then visit the other other airlines with our domestic 179 00:09:33,040 --> 00:09:35,960 flights. We have a domestic airline Air 180 00:09:35,960 --> 00:09:38,280 Marshall Islands. You could visit all these 181 00:09:38,280 --> 00:09:42,680 beautiful small islands around the the other smaller talls in 182 00:09:42,680 --> 00:09:45,680 the Marshall Islands. Or by boat. 183 00:09:45,960 --> 00:09:46,680 Go ahead. Yeah, Yes. 184 00:09:49,120 --> 00:09:52,200 Elaji, let me let me tell you also something that we're also 185 00:09:52,200 --> 00:09:55,000 working on that you'd be very interested to know and your 186 00:09:55,000 --> 00:09:58,640 audience will be will know about this what we're trying to, we're 187 00:09:58,640 --> 00:10:01,480 trying to do what we call an NFD of all these islands. 188 00:10:01,480 --> 00:10:04,320 There's so many islands in the Marshalls over thousands of 189 00:10:04,320 --> 00:10:06,480 islands. We're trying to do an NFD autumn 190 00:10:06,480 --> 00:10:10,520 so we can digitize these assets. These are idle assets that are 191 00:10:10,520 --> 00:10:14,320 there and we can actually, you know, put it out in the in the 192 00:10:14,320 --> 00:10:17,120 Web 3. Wait, so so would you just be 193 00:10:17,120 --> 00:10:21,400 buying like a digital, you know, art representation, art 194 00:10:21,400 --> 00:10:23,480 representation of the island? Or would you actually be buying 195 00:10:23,480 --> 00:10:26,440 the island itself? Not well, not buying it, but 196 00:10:26,440 --> 00:10:28,760 actually leasing it. Oh, really? 197 00:10:28,880 --> 00:10:30,640 That's interesting. Wow. 198 00:10:30,800 --> 00:10:37,440 OK, so you have my attention. There's this, there's this great 199 00:10:37,480 --> 00:10:40,040 site actually which we could put up called, I think it's like 200 00:10:40,360 --> 00:10:44,080 Private Islands Online. Let's, you know, let's cover the 201 00:10:44,320 --> 00:10:46,480 the Dow law just for a second and then come back to the 202 00:10:46,480 --> 00:10:48,120 private islands because I'm actually interested in both. 203 00:10:48,680 --> 00:10:52,520 So Dow law, you guys just passed that last year, 2022. 204 00:10:52,600 --> 00:10:55,640 OK, Adam, you put that on screen. 205 00:10:55,800 --> 00:10:59,400 So tell us, tell us about that. Yeah, absolutely. 206 00:10:59,400 --> 00:11:01,880 So you know. First of all, why do? 207 00:11:01,880 --> 00:11:05,160 Laws matter in Web Three, right? A lot of people might say, well, 208 00:11:05,160 --> 00:11:08,600 we're building a censorship resistant, you know, subversive 209 00:11:08,600 --> 00:11:11,360 revolutionary system. And that's fine that some people 210 00:11:11,360 --> 00:11:13,600 are working on that. But the fact is that most Web 211 00:11:13,600 --> 00:11:17,480 three products and most Dows are just trying to follow the law, 212 00:11:17,840 --> 00:11:19,680 right? They need the same benefits that 213 00:11:19,680 --> 00:11:23,440 other organizations get when they create legal entities, like 214 00:11:23,800 --> 00:11:27,680 the protection from unlimited liability for their members and 215 00:11:27,680 --> 00:11:29,320 the. Ability for the project to. 216 00:11:29,520 --> 00:11:33,320 Own property, right to own its own name, own its own logo right 217 00:11:33,320 --> 00:11:35,200 and be able. To assert those property rights. 218 00:11:35,640 --> 00:11:38,760 So Dows and Web Three projects need those things to the problem 219 00:11:38,760 --> 00:11:41,880 with legacy laws. Almost every law everywhere in 220 00:11:41,880 --> 00:11:46,160 the world relating to legal entities require organizations 221 00:11:46,160 --> 00:11:49,680 to do things that no DAO wants to do and no Web 3 project wants 222 00:11:49,680 --> 00:11:52,080 to do. So that's things like requiring 223 00:11:52,080 --> 00:11:53,760 all of the members. To disclose their. 224 00:11:53,760 --> 00:11:55,560 Real names and physical addresses. 225 00:11:55,680 --> 00:11:58,640 I mean, right there, you. Lost 95% of Daos, right, if not 226 00:11:58,640 --> 00:12:00,960 more. They require traditional boards 227 00:12:00,960 --> 00:12:04,600 and management teams, which usually Daos don't want, with 228 00:12:04,600 --> 00:12:07,240 some exceptions. They require paper record. 229 00:12:07,240 --> 00:12:09,160 Keeping. Even if it's like e-mail and PDF 230 00:12:09,160 --> 00:12:11,600 record keeping Daos don't want to do that because. 231 00:12:11,600 --> 00:12:14,400 All the records already. Exist on the blockchain, right? 232 00:12:14,400 --> 00:12:17,200 Governments are trying to enforce dated securities laws 233 00:12:17,400 --> 00:12:19,600 and apply concepts like traditional. 234 00:12:19,600 --> 00:12:23,120 Securities to. Governance tokens and even just 235 00:12:23,120 --> 00:12:25,720 generally, you know, not allowing you to perform critical 236 00:12:25,720 --> 00:12:28,120 functions like voting and meetings on chain. 237 00:12:29,320 --> 00:12:32,560 So what we've done in collaboration with the Marshall 238 00:12:32,560 --> 00:12:36,080 Islands is passed this new law that you're talking about and it 239 00:12:36,080 --> 00:12:38,360 starts with very basic things, and I have this up on the 240 00:12:38,360 --> 00:12:41,600 screen, but just defining what is a blockchain, What is a 241 00:12:41,600 --> 00:12:42,880 digital? Asset right. 242 00:12:42,880 --> 00:12:45,040 What is a Dow right, so that you. 243 00:12:45,040 --> 00:12:48,800 Can then include these things in the nature of how you govern and 244 00:12:48,800 --> 00:12:52,600 regulate these organizations. Importantly, this clause I have 245 00:12:52,600 --> 00:12:54,880 up on the screen simply. Says that. 246 00:12:54,880 --> 00:12:58,400 Dow's can be limited liability companies and we call them Dow. 247 00:12:58,400 --> 00:13:00,040 LLCS, but this is. The line that. 248 00:13:00,040 --> 00:13:03,160 Gives Dow's all the. Protections that most companies 249 00:13:03,160 --> 00:13:04,640 get very easily. By the law. 250 00:13:05,880 --> 00:13:09,200 This clause in the law is about management, so just saying that 251 00:13:09,240 --> 00:13:12,880 a an algorithm can manage an organization instead of having a 252 00:13:12,880 --> 00:13:15,480 traditional management team. Right, that is so. 253 00:13:15,480 --> 00:13:17,200 Powerful. That's what so many Daos are 254 00:13:17,200 --> 00:13:18,800 trying to do with smart contracts. 255 00:13:18,880 --> 00:13:20,960 Things like a membership interests. 256 00:13:21,000 --> 00:13:23,560 Right, so. In it's in most Daos and web 257 00:13:23,560 --> 00:13:25,920 three projects, there's some kind of tokenized membership 258 00:13:25,920 --> 00:13:29,120 interest, whether it's an NFT, whether it's one person, one 259 00:13:29,120 --> 00:13:32,680 vote or one token, one vote. But to acknowledge in the law 260 00:13:32,680 --> 00:13:34,840 that you can have a governance token, right? 261 00:13:34,840 --> 00:13:37,560 And the purpose of that governance token can be to 262 00:13:37,560 --> 00:13:40,560 represent your voting rights or your economic interest. 263 00:13:40,560 --> 00:13:43,720 If it's a for profit. In the organization, right in 264 00:13:43,720 --> 00:13:47,000 the project and finally rights to information. 265 00:13:47,000 --> 00:13:51,200 So traditional LLCS, a member or the government or anyone could 266 00:13:51,200 --> 00:13:53,880 come to you and say I want a. Copy of all the. 267 00:13:53,880 --> 00:13:57,320 Organization's records and you'd have to provide them with APDF 268 00:13:57,320 --> 00:13:58,760 or a binder full of. Records. 269 00:13:59,240 --> 00:14:00,680 And so our law in this clause and. 270 00:14:00,680 --> 00:14:03,920 Others fixes that by. Saying As long as you're keeping 271 00:14:03,920 --> 00:14:07,040 all of your records on an open and public blockchain, you don't 272 00:14:07,040 --> 00:14:08,920 have to furnish your records in any other way. 273 00:14:09,560 --> 00:14:12,120 So these are just. Examples of some of the clauses 274 00:14:12,120 --> 00:14:14,000 that are in the law. But it's just these basic. 275 00:14:14,000 --> 00:14:16,880 Things that say, look, here's how traditional organizations 276 00:14:16,880 --> 00:14:18,640 did things. Here's how Web 3. 277 00:14:18,640 --> 00:14:22,800 Organizations do things and therefore allowing those things 278 00:14:22,800 --> 00:14:25,920 to happen in these new Web 3 organizations. 279 00:14:26,680 --> 00:14:31,200 Well, I I love this because you know, I I often talk about you 280 00:14:31,200 --> 00:14:34,840 know there's the Fiat currency the cryptocurrency interface at 281 00:14:34,840 --> 00:14:38,680 that turned out to be more important and profitable than 282 00:14:38,680 --> 00:14:41,160 anybody ever thought with the Fiat currency to cryptocurrency 283 00:14:41,160 --> 00:14:44,560 exchange concept. I've often thought, and actually 284 00:14:44,560 --> 00:14:46,920 we're in the middle of this now, that you're going to have the 285 00:14:46,920 --> 00:14:49,840 Fiat identity to crypto identity exchange. 286 00:14:49,840 --> 00:14:54,440 That's kind of what Palau is doing with its RNS dot ID or you 287 00:14:54,440 --> 00:14:58,320 have the Fiat company to crypto company exchange or interface. 288 00:14:58,320 --> 00:15:00,920 And that's kind of what you've set up and and some other 289 00:15:00,920 --> 00:15:05,080 jurisdictions are exploring because there's no reason to 290 00:15:05,320 --> 00:15:08,720 have piece of paper represent something if you can actually 291 00:15:08,720 --> 00:15:11,040 have it in code. For example, if your votes can 292 00:15:11,040 --> 00:15:13,360 be on chain, well they're cryptographically signed, 293 00:15:13,600 --> 00:15:16,600 they're recordable, It's a data structure, you can program 294 00:15:16,600 --> 00:15:18,920 against it and you don't have to have just reams and reams and 295 00:15:18,920 --> 00:15:21,840 rooms of paper. And so this makes a ton of sense 296 00:15:21,840 --> 00:15:24,840 logically and I'm really glad that there is place that's kind 297 00:15:24,840 --> 00:15:28,160 of pioneered this and so now we can actually have an on chain 298 00:15:28,160 --> 00:15:31,640 representation of a company that is fully legally compliant. 299 00:15:31,840 --> 00:15:33,720 Yeah, and not only that. But I'll just add. 300 00:15:33,720 --> 00:15:36,280 That Dow's are much more transparent and they have much 301 00:15:36,280 --> 00:15:38,840 more guaranteed compliance than traditional companies. 302 00:15:39,200 --> 00:15:41,800 So, you know, some people might react to this the same way they. 303 00:15:41,800 --> 00:15:45,160 React to crypto. Currencies with Fear with oh you 304 00:15:45,160 --> 00:15:47,720 know couldn't this be used for criminal activity, but the 305 00:15:47,720 --> 00:15:50,640 Marshall Islands and and our company we share the compliance 306 00:15:50,640 --> 00:15:53,720 obligation actually have way more visibility into all. 307 00:15:53,720 --> 00:15:56,400 Of these Dow's. Than any government has into any 308 00:15:56,400 --> 00:15:59,360 other company on earth. So it's it's really a win, win. 309 00:15:59,400 --> 00:16:02,640 Right where people get to do. What they want to do on chain? 310 00:16:02,680 --> 00:16:06,480 With these web three projects. And the government can make sure 311 00:16:06,480 --> 00:16:09,160 that there's no illegal activity happening because every 312 00:16:09,160 --> 00:16:10,800 transaction is recorded on chain. 313 00:16:11,760 --> 00:16:12,720 That's great. Yeah. 314 00:16:12,760 --> 00:16:17,400 And I mean the big thing about this is and simply that concept 315 00:16:17,400 --> 00:16:21,320 of what that interface looks like and how on chain things 316 00:16:21,320 --> 00:16:23,520 become. At first you mirror things on 317 00:16:23,520 --> 00:16:26,160 chain and then the mirror becomes the primary. 318 00:16:26,320 --> 00:16:28,120 It's kind of like, you know, the New York Times. 319 00:16:28,120 --> 00:16:31,360 For a long time I was, he was just a piece of paper, right. 320 00:16:31,360 --> 00:16:34,000 And then they had a New York Times website and those existed 321 00:16:34,000 --> 00:16:36,520 for a while and now you could say the website is primary and 322 00:16:36,520 --> 00:16:39,480 the paper is very secondary. And I think you're one of the 323 00:16:39,480 --> 00:16:44,400 first to start making the on chain entity be a full companion 324 00:16:44,400 --> 00:16:48,000 and peer to the to the paper entity and eventually in 10 or 325 00:16:48,000 --> 00:16:51,160 20 years or or whoever knows and that becomes like primary. 326 00:16:51,560 --> 00:16:55,640 So you know when you pass this, when did you pass this in 2022, 327 00:16:55,640 --> 00:16:58,040 June or? Ish November. 328 00:16:58,480 --> 00:16:59,960 November. OK, so it's just a few months 329 00:16:59,960 --> 00:17:01,480 old, Less than a year old right now, Yeah. 330 00:17:01,720 --> 00:17:04,920 Have you set up any entities under this structure so far? 331 00:17:05,119 --> 00:17:07,960 Yeah, almost 100 entities. Oh, really? 332 00:17:07,960 --> 00:17:10,480 OK, that's great. And what is the what's a 333 00:17:10,480 --> 00:17:14,000 procedure if if somebody were to want to go and set one up, what 334 00:17:14,000 --> 00:17:16,000 are the costs? Where do they go? 335 00:17:16,000 --> 00:17:19,440 And and so. On and so forth and I'll throw a 336 00:17:19,440 --> 00:17:23,000 slide up with some QR codes, even we have a guide to Dow 337 00:17:23,000 --> 00:17:25,560 incorporation. That actually not only helps you 338 00:17:25,560 --> 00:17:27,359 if you want to be in the Marshall Islands, but it helps 339 00:17:27,359 --> 00:17:29,880 you think through. Should you incorporate your Dow, 340 00:17:29,880 --> 00:17:32,240 should you incorporate your Web 3 project and where? 341 00:17:32,440 --> 00:17:34,440 Right, because every situation really is different. 342 00:17:34,440 --> 00:17:36,400 But if you want to. Register a Dow LLC. 343 00:17:36,400 --> 00:17:38,240 In the Marshall Islands, you reach out to My Dow. 344 00:17:38,280 --> 00:17:40,280 It's at my dow.org. It's MI. 345 00:17:40,280 --> 00:17:43,480 Dao.org. And we can also connect you and 346 00:17:43,480 --> 00:17:46,800 your project with our partner network of over 300 vetted. 347 00:17:47,040 --> 00:17:49,440 Web Three lawyers. And that's actually a really 348 00:17:49,440 --> 00:17:51,960 common challenge that we hear projects having is finding the 349 00:17:51,960 --> 00:17:54,200 right web. Three lawyer with the right. 350 00:17:54,200 --> 00:17:56,560 Jurisdictional expertise, whether it's Marshall Islands. 351 00:17:56,560 --> 00:17:57,560 Whether it's Europe, whether it's. 352 00:17:57,560 --> 00:17:59,800 United States or more than one and the right? 353 00:17:59,800 --> 00:18:02,280 Expertise to help you solve. The particular challenges that 354 00:18:02,280 --> 00:18:05,920 you have so we can also help get people connected at no charge 355 00:18:05,920 --> 00:18:07,960 with. With good web three lawyers. 356 00:18:08,800 --> 00:18:09,800 Awesome. That's cool. 357 00:18:10,080 --> 00:18:12,600 And if you go back one slide, there was something on kind of 358 00:18:12,600 --> 00:18:16,920 the advantages of the Marshall Islands if you go back one, so 359 00:18:16,920 --> 00:18:19,800 you do you want to speak to this like so of course you know 360 00:18:19,800 --> 00:18:22,560 crypto entrepreneurs are global, they can go all over the world. 361 00:18:23,320 --> 00:18:27,280 You know, why should they go and use the Marshall Islands over, 362 00:18:27,280 --> 00:18:28,920 you know, Cayman or or something like. 363 00:18:28,920 --> 00:18:31,960 That, Yeah, absolutely so. There are clear advantages over 364 00:18:31,960 --> 00:18:36,320 Cayman, BVI, Switzerland, USA and and other jurisdictions. 365 00:18:37,160 --> 00:18:39,400 The USA is an easy one, and people who listen to your 366 00:18:39,400 --> 00:18:43,880 podcasts will know that the USA is not a friendly jurisdiction 367 00:18:43,880 --> 00:18:46,720 for web three, and in fact, it's not a friendly jurisdiction in a 368 00:18:46,720 --> 00:18:49,520 in a number of ways, right? And so it's almost obvious why 369 00:18:49,520 --> 00:18:51,800 you wouldn't want to base your. Dow or Web 3 project. 370 00:18:51,800 --> 00:18:54,400 In the United States. And it's just about the fear of 371 00:18:54,400 --> 00:18:56,040 what the federal. Government is going to do. 372 00:18:56,040 --> 00:18:58,360 Even if you have a. Wyoming, Dow LLC. 373 00:18:58,360 --> 00:19:00,120 Which is a is a. Very innovative thing that 374 00:19:00,120 --> 00:19:01,880 they've done, very similar to what we've done. 375 00:19:02,200 --> 00:19:05,080 The problem is you're in the United States, so that's the. 376 00:19:05,080 --> 00:19:07,920 Issue with the US. When it comes to every other 377 00:19:07,920 --> 00:19:11,400 jurisdiction in the world, so Cayman, BVI, Swiss, they offer 378 00:19:11,400 --> 00:19:15,280 foundations and corporations and and trusts and all of these 379 00:19:15,280 --> 00:19:18,760 corporate structures have boards and officers and when you have 380 00:19:18,760 --> 00:19:21,760 boards and officers that creates it's not only just kind of 381 00:19:21,760 --> 00:19:24,480 against the principle of decentralization to to many of 382 00:19:24,480 --> 00:19:26,760 us in Web 3. But it creates a target. 383 00:19:26,760 --> 00:19:29,040 For regulators and law enforcement to go. 384 00:19:29,040 --> 00:19:31,560 After that board, right? It could be the Founders, It 385 00:19:31,560 --> 00:19:33,080 could be some other. Group of people. 386 00:19:33,400 --> 00:19:35,920 All of a sudden you're not really decentralized and so you 387 00:19:35,920 --> 00:19:39,120 might get in more trouble with the SEC when they say, well, is 388 00:19:39,120 --> 00:19:40,640 there a central? Group of people that you're. 389 00:19:40,640 --> 00:19:43,040 Relying on to get a return on your investment. 390 00:19:43,400 --> 00:19:46,920 So there's no doubt LLC anywhere else in the world other than the 391 00:19:46,920 --> 00:19:48,680 Marshall Islands in the United States. 392 00:19:49,520 --> 00:19:52,120 So if you want to be offshore and you want to Dow. 393 00:19:52,120 --> 00:19:54,440 LLC You have. To come to the Marshall Islands. 394 00:19:55,240 --> 00:19:57,760 And by the way, Dow LLCS are not just for Dow. 395 00:19:57,760 --> 00:20:00,360 'S so. You know, not everyone loves the 396 00:20:00,360 --> 00:20:03,840 term Dow, and a lot of crypto projects have multiple entities, 397 00:20:03,840 --> 00:20:05,000 right? You might have an entity in the 398 00:20:05,240 --> 00:20:07,200 US, in the BVI, in the Marshall Islands. 399 00:20:08,040 --> 00:20:11,000 So any web three projects can usually take advantage of a Dow 400 00:20:11,000 --> 00:20:13,560 LLC as some part of their ecosystem. 401 00:20:13,960 --> 00:20:15,880 And that's something we can help people think through. 402 00:20:16,120 --> 00:20:17,840 We're also working on a new. Laws. 403 00:20:17,840 --> 00:20:19,720 So we've actually passed 2 laws, so. 404 00:20:19,720 --> 00:20:21,000 Far in the Marshall. Islands. 405 00:20:21,000 --> 00:20:25,160 The first was actually. In 2021 and the Dow Act built on 406 00:20:25,160 --> 00:20:27,920 that, we have more that we're working on in the pipeline laws 407 00:20:27,920 --> 00:20:31,240 and regulations to continue to help the Marshall Islands be the 408 00:20:31,240 --> 00:20:34,520 best place in the world and the only sovereign nation that truly 409 00:20:34,520 --> 00:20:36,720 recognizes the nature of Dows and Web 3. 410 00:20:36,880 --> 00:20:40,920 So you are kind of crypto first is one way of thinking about it. 411 00:20:40,920 --> 00:20:45,640 And you're not retrofitting an existing structure onto crypto. 412 00:20:45,640 --> 00:20:49,360 You really have thought about it from scratch to to kind of merge 413 00:20:49,400 --> 00:20:52,560 with with how Dows actually are the laws meeting where the 414 00:20:52,680 --> 00:20:57,120 projects are. You know to your earlier .1 way 415 00:20:57,120 --> 00:20:59,160 of thinking about. What we do is it's a legal 416 00:20:59,160 --> 00:21:00,960 bridge. Between web two and web 3. 417 00:21:01,360 --> 00:21:02,640 Right. It's for Web 3. 418 00:21:02,640 --> 00:21:06,200 Projects that need. To bridge over to the tradfi 419 00:21:06,200 --> 00:21:08,440 world, the web two world. And the way. 420 00:21:08,440 --> 00:21:11,360 We do that actually is. By customizing the LLC. 421 00:21:11,720 --> 00:21:15,120 So this these Dow LLCS. Are limited liability companies 422 00:21:15,520 --> 00:21:17,960 that just have slightly different treatment under the 423 00:21:17,960 --> 00:21:20,040 law in all the ways that really matter? 424 00:21:20,040 --> 00:21:22,720 To web three right like. Again, not having a board, not 425 00:21:22,720 --> 00:21:25,080 having to keep paper records, things like that. 426 00:21:25,280 --> 00:21:29,160 So so it is. Piggybacking on the LLC, which 427 00:21:29,160 --> 00:21:30,680 is the most common legal entity in the. 428 00:21:30,680 --> 00:21:32,920 World by far. The most popular. 429 00:21:33,600 --> 00:21:35,520 And that's because we want these Dow's to have all the same 430 00:21:35,520 --> 00:21:38,000 benefits, to be able to open a bank account, open an exchange 431 00:21:38,000 --> 00:21:38,880 account. Right. 432 00:21:38,880 --> 00:21:41,360 A lot of our Dow's are. Doing things like opening bank 433 00:21:41,360 --> 00:21:44,040 accounts because they might want to sponsor an event that doesn't 434 00:21:44,040 --> 00:21:48,080 take crypto or get paid by a sponsor that only has Fiat 435 00:21:48,080 --> 00:21:50,120 currency. Well, let's talk about that for 436 00:21:50,120 --> 00:21:52,360 a second. So is Marshall Islands a good 437 00:21:52,360 --> 00:21:55,200 spot for a crypto company to open a bank account? 438 00:21:56,720 --> 00:22:01,320 So the Marshall Islands banks are not yet open for business 439 00:22:01,320 --> 00:22:04,960 for Web 3 and crypto companies. And I mean the Minister could 440 00:22:05,000 --> 00:22:08,760 could maybe speak to this in more detail, but Marshall 441 00:22:08,760 --> 00:22:10,560 Islands entities. So actually, I mean, maybe the 442 00:22:10,560 --> 00:22:11,880 Minister could talk about. This but. 443 00:22:12,280 --> 00:22:14,520 For a long time, the Marshall Islands has been one of the most 444 00:22:14,520 --> 00:22:17,680 popular jurisdictions for shipping companies to register. 445 00:22:18,080 --> 00:22:20,880 So there are about 50. Publicly traded companies on 446 00:22:20,880 --> 00:22:23,600 NASDAQ and New York Stock Exchange that are Marshall 447 00:22:23,600 --> 00:22:26,520 Islands companies and so unless you're in the shipping industry 448 00:22:26,520 --> 00:22:28,920 or you may have seen the Marshall Islands flag which is 449 00:22:28,920 --> 00:22:30,240 on boats. All over the world. 450 00:22:30,920 --> 00:22:32,640 You may not know it. But this is a. 451 00:22:32,640 --> 00:22:34,720 Tried and true destination and so banks. 452 00:22:34,720 --> 00:22:37,000 All over the world Will. Accept Marshall Islands 453 00:22:37,000 --> 00:22:40,280 companies, including Dow LLCS to open an account. 454 00:22:40,440 --> 00:22:45,600 Well yeah, I mean the Adam you you touched on the the ship 455 00:22:45,600 --> 00:22:49,120 registry and the corporate registry the banking sector in 456 00:22:49,120 --> 00:22:52,680 the Marshall allies has always been opponent of anything that 457 00:22:52,680 --> 00:22:56,360 has to do with crypto. No is no secret that you know 458 00:22:56,360 --> 00:23:00,600 once crypto or digital currencies are going to be 459 00:23:00,600 --> 00:23:04,240 becoming a dominant force then it will actually render these 460 00:23:04,240 --> 00:23:09,360 banks redundant because then because in the the the idea of 461 00:23:09,600 --> 00:23:15,320 digital currencies is is peer-to-peer so it will cut out 462 00:23:15,320 --> 00:23:18,400 the middleman which is all the banks because they might make 463 00:23:18,400 --> 00:23:21,680 money on the on the transaction cost and fees. 464 00:23:22,240 --> 00:23:27,360 So they've always been an opponent of anything that has to 465 00:23:27,360 --> 00:23:30,960 do with digital currency or cryptocurrency and so forth. 466 00:23:31,640 --> 00:23:35,040 So at this point in time these established banks in the 467 00:23:35,040 --> 00:23:41,280 Marshall allies there are anti crypto or digital. 468 00:23:42,000 --> 00:23:45,200 So, so does that mean that we have half of the solution 469 00:23:45,200 --> 00:23:48,440 working, which is the company solution but the banking piece 470 00:23:48,440 --> 00:23:50,760 isn't yet there or how should we think about that? 471 00:23:51,480 --> 00:23:52,760 No. You just have to use. 472 00:23:52,760 --> 00:23:55,400 Other banks. So we have Dow LLC. 473 00:23:55,400 --> 00:23:58,280 Clients that have bank accounts in Europe, in the United States, 474 00:23:58,760 --> 00:24:01,480 in. Dubai so we we have service 475 00:24:01,480 --> 00:24:04,400 providers that can help Dow set. Up bank accounts and some have 476 00:24:04,400 --> 00:24:06,560 just done it on their own. They just apply for an account 477 00:24:06,560 --> 00:24:08,160 at Mercury. Or. 478 00:24:08,600 --> 00:24:11,160 Western Alliance Bank we had someone had an account at 479 00:24:11,160 --> 00:24:12,520 signature. That obviously got. 480 00:24:12,520 --> 00:24:14,960 Got shut down. So you just have to. 481 00:24:15,160 --> 00:24:17,680 Use the Global Banking system, even if you're a Marshall 482 00:24:17,680 --> 00:24:20,200 Islands entity. Let me also jump in on that 483 00:24:20,200 --> 00:24:22,840 because if you look at the corporate registry program that 484 00:24:22,840 --> 00:24:27,960 we have, we do have we're registering corporation that are 485 00:24:28,160 --> 00:24:31,640 not that was Island the Marshall Islands but they are registered 486 00:24:31,640 --> 00:24:34,560 under the corporate registry program that we established 487 00:24:34,880 --> 00:24:37,320 under our laws. So if there's going to be 488 00:24:37,320 --> 00:24:42,360 anything to adjudicate any dispute among the members of the 489 00:24:42,360 --> 00:24:45,320 corporation that they raised in the Marshall Islands, Marshall 490 00:24:45,320 --> 00:24:47,760 Islands jurisdiction and Marshall Island laws and 491 00:24:47,760 --> 00:24:51,120 Marshall Island court system are going to be the one adjudicating 492 00:24:51,120 --> 00:24:54,560 these disputes because they are registered in our jurisdiction 493 00:24:54,880 --> 00:24:57,840 is no different than what we're trying to do with respect to 494 00:24:58,080 --> 00:25:02,560 with the with the Dow when we when we have the Dow legislation 495 00:25:02,560 --> 00:25:06,920 in here meaning that they are are domiciled in the Marshall 496 00:25:06,920 --> 00:25:11,120 Islands under our laws. Do you you know, would you be 497 00:25:11,120 --> 00:25:15,000 able to award licenses for example to to somebody like 498 00:25:15,200 --> 00:25:19,720 banking licenses? Like you know if if banks, you 499 00:25:19,720 --> 00:25:23,080 know if if you know you're a sovereign country, you passed a 500 00:25:23,080 --> 00:25:25,360 law on this. If somebody wanted to become a 501 00:25:25,360 --> 00:25:28,440 bank, could they potentially become a crypto friendly bank 502 00:25:28,440 --> 00:25:29,720 and set up in the Marshall Islands? 503 00:25:29,720 --> 00:25:31,080 Is that a possibility? So I. 504 00:25:31,120 --> 00:25:32,880 I could speak to this. Because we've had this 505 00:25:32,880 --> 00:25:35,160 conversation with the Banking Commissioner in the Marshall 506 00:25:35,160 --> 00:25:40,160 Islands and they're open to it, but first they're looking to to 507 00:25:40,160 --> 00:25:43,440 My Dow to help them draft the regulations under. 508 00:25:43,440 --> 00:25:47,040 Which that type of activity would occur, so currently VASPS. 509 00:25:47,040 --> 00:25:52,360 And banks are not supported. At least as Dow LLCS. 510 00:25:52,680 --> 00:25:55,240 In the Marshall Islands. But I should clarify that there 511 00:25:55,240 --> 00:25:57,280 is a. Distinction between the Dow and 512 00:25:57,280 --> 00:25:58,840 a. Protocol, right? 513 00:25:58,840 --> 00:26:02,520 So if a protocol does defy it. Doesn't make you a VASP in the 514 00:26:02,520 --> 00:26:04,840 Marshall Islands. The Marshall Islands of VASP 515 00:26:04,840 --> 00:26:07,840 would be someone who's actually setting up a bank or an exchange 516 00:26:08,200 --> 00:26:10,840 or something like that. And to my knowledge, the Banking 517 00:26:10,840 --> 00:26:13,840 Commissioner is open to it, but only once we help draft a new 518 00:26:14,280 --> 00:26:17,800 regulation. Well, so let me let me jump in 519 00:26:17,800 --> 00:26:20,240 on that. Let me just make it clear that 520 00:26:20,760 --> 00:26:22,760 so no nobody's can choose about it. 521 00:26:22,960 --> 00:26:29,480 Mars digital assets or digital currency or whatever you or the 522 00:26:29,480 --> 00:26:32,680 assets are not. They're not that they're they're 523 00:26:32,680 --> 00:26:35,760 not, they're not illegal in the Marshall Islands. 524 00:26:35,760 --> 00:26:39,520 They're not outlawed. They are allowed but they're the 525 00:26:39,520 --> 00:26:42,440 problem is we still have to develop the regulations, the 526 00:26:42,440 --> 00:26:45,320 proper regulations for them to be regulated. 527 00:26:46,120 --> 00:26:48,800 But as far as them registered, of course they can come, we're 528 00:26:48,800 --> 00:26:51,120 open for business. They have to go through the 529 00:26:51,120 --> 00:26:54,720 process of getting registered but then they'll be have to be 530 00:26:54,720 --> 00:27:00,160 reviewed by the the authorities but no one is stopping them but 531 00:27:00,160 --> 00:27:02,880 they're going to have to be but they will say well we need to 532 00:27:02,880 --> 00:27:06,480 develop the regulations before the regulatory frameworks before 533 00:27:06,480 --> 00:27:09,640 we can allow you to start operating in our jurisdiction. 534 00:27:09,840 --> 00:27:13,400 So right now we're working on an amendment. 535 00:27:13,560 --> 00:27:18,640 To the Dow act as well as a Dow. Regulation that makes it doesn't 536 00:27:18,640 --> 00:27:22,760 add any new rules, but makes it. Really clear to Dow's exactly 537 00:27:22,760 --> 00:27:25,320 how to follow all the laws. Of the Marshall Islands and 538 00:27:25,320 --> 00:27:27,920 actually provides them with other benefits even in the other 539 00:27:27,920 --> 00:27:31,000 in the jurisdictions where the founders or other members 540 00:27:31,000 --> 00:27:33,400 reside. Just by categorizing things a 541 00:27:33,400 --> 00:27:36,360 certain way, you don't have to fly to the Marshall Islands that 542 00:27:36,360 --> 00:27:38,440 that's why we have an office. There it's the registered. 543 00:27:38,440 --> 00:27:40,040 Agent So, my Dow. Is your registered? 544 00:27:40,040 --> 00:27:42,200 Agent You don't have to fly there. 545 00:27:42,200 --> 00:27:46,400 You might want to because it's beautiful, but basically we have 546 00:27:46,400 --> 00:27:49,840 variable pricing for a dows of different sizes. 547 00:27:50,160 --> 00:27:52,640 So usually there is a a. Conversation that someone from 548 00:27:52,640 --> 00:27:55,680 our team has with the DAO or representatives. 549 00:27:55,680 --> 00:27:57,480 Of the DAO to figure. Out. 550 00:27:57,480 --> 00:27:59,440 What's the model that works best for them? 551 00:28:00,040 --> 00:28:03,280 Often times they have questions. You know, most people starting 552 00:28:03,280 --> 00:28:04,920 Daos are new to. Daos because Daos. 553 00:28:04,920 --> 00:28:08,640 Are new and so we do offer not legal advice but business. 554 00:28:08,640 --> 00:28:12,000 Advice for Daos that ask. Questions about everything from 555 00:28:12,000 --> 00:28:14,480 what technology? To use to what are. 556 00:28:14,480 --> 00:28:17,520 Common structures or common challenges that other Daos are 557 00:28:17,520 --> 00:28:19,560 facing. And then again, we also get them 558 00:28:19,560 --> 00:28:22,680 connected with lawyers in our partner network when they need 559 00:28:22,680 --> 00:28:25,480 actual legal. Advice or Tax advisors? 560 00:28:25,480 --> 00:28:29,040 And and things like that. So it's not just a form usually. 561 00:28:29,040 --> 00:28:31,560 There's a bit of it. It's kind of a consultative. 562 00:28:31,920 --> 00:28:35,000 Process where we help you. Through everything. 563 00:28:35,360 --> 00:28:37,760 That's right. So our clients interface with My 564 00:28:37,760 --> 00:28:40,240 Dow directly and then we interface with the government on 565 00:28:40,240 --> 00:28:42,000 their behalf. They don't have to have a 566 00:28:42,000 --> 00:28:44,240 management team. So we we refer to. 567 00:28:44,240 --> 00:28:46,960 The initial members. Of the DAO as the group of. 568 00:28:46,960 --> 00:28:50,720 People that is forming the DAO and that can be as few as one 569 00:28:50,720 --> 00:28:52,920 person and it could be a founder, but it doesn't have to. 570 00:28:52,920 --> 00:28:55,600 Be or it could. Be the entire DAO, forming it 571 00:28:55,600 --> 00:28:59,600 together all at the same time. There are KYC requirements for 572 00:28:59,600 --> 00:29:01,720 any beneficial members, we call them. 573 00:29:01,720 --> 00:29:05,360 Because these are especially. With nonprofit Daos, these are 574 00:29:05,360 --> 00:29:10,200 members, not owners, and so for a nonprofit Dow LLC, any or for 575 00:29:10,200 --> 00:29:14,400 profit, anyone who has 25% or more governance rights and any 576 00:29:14,400 --> 00:29:16,520 managers. Have to do KYC. 577 00:29:16,920 --> 00:29:19,720 But often that's one or zero. People, right? 578 00:29:19,720 --> 00:29:22,680 So it's it's whoever. Does want to be that person 579 00:29:22,680 --> 00:29:26,600 who's interfacing with us and I think in one of our draft 580 00:29:26,600 --> 00:29:29,600 regulations, we call that person a representative agent. 581 00:29:30,040 --> 00:29:32,040 So there will be a. Form for someone to fill out to 582 00:29:32,040 --> 00:29:35,480 say I'm the person you should talk to on behalf. 583 00:29:35,480 --> 00:29:37,880 Of the Dow it. Doesn't give you any additional 584 00:29:37,880 --> 00:29:40,160 legal liability. It doesn't give you any power 585 00:29:40,160 --> 00:29:42,840 over the Dow. It's just a matter of process 586 00:29:42,840 --> 00:29:44,880 that we need someone. To deal with. 587 00:29:44,880 --> 00:29:48,880 We need a phone number, an address, an e-mail address, just 588 00:29:48,880 --> 00:29:50,880 in case we need to reach out. Got it. 589 00:29:51,080 --> 00:29:53,160 OK. And so LLCS are actually well 590 00:29:53,160 --> 00:29:55,160 suited for this because they have lots of members 591 00:29:55,160 --> 00:29:57,640 potentially. And so you could have lots of 592 00:29:57,640 --> 00:29:59,560 symmetrical members and members of the Dow. 593 00:29:59,560 --> 00:30:01,960 So it's sort of a scaling up of LLCS as you mentioned. 594 00:30:02,040 --> 00:30:04,840 Yeah, and a lot of LLCS also have membership interests. 595 00:30:04,840 --> 00:30:08,280 Already which is a way of. Dividing governance rights and 596 00:30:08,280 --> 00:30:12,360 or economic ownership in a in a more nuanced way. 597 00:30:12,600 --> 00:30:14,400 So for example. A lot of our Daos. 598 00:30:14,400 --> 00:30:17,680 Are one token, one vote Daos and the way we construct. 599 00:30:17,680 --> 00:30:20,520 That is that each. Token represents one membership 600 00:30:20,520 --> 00:30:24,480 interest and then you. Do you have proposals where? 601 00:30:24,640 --> 00:30:28,360 There's a quorum of, you know, 25% of the membership interests 602 00:30:28,640 --> 00:30:31,880 and you need 51% of the people voting of the membership 603 00:30:31,880 --> 00:30:33,880 interests voting. To carry a. 604 00:30:33,880 --> 00:30:36,600 Proposal. And so we're really tying these 605 00:30:36,600 --> 00:30:40,160 new Web 3 concepts to. Just like you said, LLC. 606 00:30:40,160 --> 00:30:42,000 Concepts that have been around for a long time. 607 00:30:42,320 --> 00:30:45,800 And can can you name some of the most interesting Daos that 608 00:30:45,800 --> 00:30:48,800 you've seen, like any that have publicly call themselves 609 00:30:48,800 --> 00:30:50,840 Marshall Island Daos? Yeah, sure. 610 00:30:50,840 --> 00:30:52,840 And and the nice thing is. That a lot of these. 611 00:30:53,360 --> 00:30:57,400 Daos have everything public on the Internet and on chain and so 612 00:30:57,400 --> 00:30:59,320 you know anyone can go see this information. 613 00:30:59,320 --> 00:31:02,560 But we have Moon Dao, which is the DAO that I think has already 614 00:31:02,560 --> 00:31:06,720 sent people into space. Crypto Mondays is a global meet 615 00:31:06,720 --> 00:31:09,200 up community in over 50 cities around the world. 616 00:31:09,200 --> 00:31:11,680 That a lot of folks have probably heard of. 617 00:31:12,520 --> 00:31:14,960 Admiralty Dow, so that's the. Dow for the Clipper. 618 00:31:14,960 --> 00:31:19,160 Exchange which is a top 100. Defy platform. 619 00:31:19,280 --> 00:31:22,120 Those are some good examples. So that was great hearing from 620 00:31:22,120 --> 00:31:27,400 Adam on kind of on how my Dow has facilitated it and gotten 621 00:31:27,400 --> 00:31:32,120 100 something Dow set up. I know you know both both you 622 00:31:32,120 --> 00:31:34,160 and the sender have been working on this. 623 00:31:34,240 --> 00:31:37,120 You mentioned you had some remarks that had been prepared. 624 00:31:37,360 --> 00:31:42,320 Just a few few points I wanted to convey and some of them are 625 00:31:42,320 --> 00:31:47,480 just reiteration of what Sadder Paul had mentioned earlier and 626 00:31:47,480 --> 00:31:51,440 it's I just wanted to bring up how the government is in full 627 00:31:51,440 --> 00:31:54,120 support of the the the law that was passed. 628 00:31:54,320 --> 00:31:59,840 It went through the proper and thorough process as as as any 629 00:31:59,840 --> 00:32:03,920 was to go through the parliament and when it reached the the 630 00:32:03,920 --> 00:32:09,600 parliament it was unanimously decided that to to be tasked. 631 00:32:10,160 --> 00:32:15,760 And as I if I remember correctly all that were in attendance. 632 00:32:15,760 --> 00:32:19,040 All the members of parliament that were in attendance where we 633 00:32:19,440 --> 00:32:23,640 did voted yes that the law should be passed except for one 634 00:32:23,800 --> 00:32:27,160 if I remember correctly. I just wanted also to convey 635 00:32:27,160 --> 00:32:30,120 that we see this as an opportunity and we've been 636 00:32:30,600 --> 00:32:35,600 exploring means in ways that we could establish a stable economy 637 00:32:35,600 --> 00:32:40,240 for the for the RMI. Given that we're other than the 638 00:32:40,320 --> 00:32:43,320 financial assistance that we receiving from from the US under 639 00:32:43,320 --> 00:32:45,440 the compact agreement we have to with the US. 640 00:32:45,920 --> 00:32:50,000 We're mostly covered by water. So our resources is basically 641 00:32:50,360 --> 00:32:54,840 mainly marine resources and given our current situation with 642 00:32:54,840 --> 00:32:59,560 the sorry about climate change low lying islands and we're 643 00:32:59,560 --> 00:33:03,400 currently the front front liners the to the changes of our 644 00:33:03,400 --> 00:33:08,440 climate change and we see that it would be given the high 645 00:33:08,520 --> 00:33:13,240 rising the rising level of water sea, sea level and the rising 646 00:33:13,560 --> 00:33:17,400 temperatures would affect the marine life and surely in the 647 00:33:17,400 --> 00:33:22,320 future might affect our our resources in and it marine 648 00:33:22,320 --> 00:33:25,200 resources. So by saying that I'm just 649 00:33:25,200 --> 00:33:30,520 trying to convey our governments, we're thinking of 650 00:33:30,520 --> 00:33:34,360 trying to explore means and ways of trying to establish a stable 651 00:33:34,360 --> 00:33:37,960 economy given we're a small island to one of these States. 652 00:33:38,000 --> 00:33:42,920 And my thought is that we see it's it's a perfect opportunity 653 00:33:43,240 --> 00:33:50,920 for us to to explore and look into the future to obtain a a a 654 00:33:50,920 --> 00:33:53,400 steady stream of revenue for RMI. 655 00:33:54,200 --> 00:33:58,600 So we're we're in full support of the Maita, the government of 656 00:33:58,600 --> 00:34:00,360 the government of the Marshall Avids. 657 00:34:00,840 --> 00:34:05,160 And like you thought it was mentioned that we have a ship 658 00:34:05,160 --> 00:34:09,360 registry which is I if I remember probably you got 659 00:34:09,360 --> 00:34:15,560 certainly ranking in second or third and ship registry rankings 660 00:34:16,159 --> 00:34:21,480 and we definitely see my dollar which we also would wouldn't be 661 00:34:22,360 --> 00:34:24,600 would benefit the economy of the RMI. 662 00:34:25,719 --> 00:34:28,560 Well, that's actually a great precedent because you know, a 663 00:34:28,560 --> 00:34:31,400 ship can be registered anywhere. If the Marshall Islands is a top 664 00:34:31,400 --> 00:34:35,360 ship registry, this is like a cloud registry for all of these, 665 00:34:35,560 --> 00:34:38,080 you know, on chain entities which could be in theory 666 00:34:38,080 --> 00:34:40,280 registered anywhere and so you registered them there. 667 00:34:40,400 --> 00:34:43,080 That's actually pretty interesting, the law of the sea, 668 00:34:43,080 --> 00:34:44,760 things like that. That's cool. 669 00:34:46,120 --> 00:34:50,840 And Sender, did you have anything that you were going to 670 00:34:50,840 --> 00:34:53,400 say? You know just to compliment what 671 00:34:53,400 --> 00:34:57,440 the Minister alluded to earlier and what Adam actually 672 00:34:57,440 --> 00:35:02,720 emphasized on our quest to be the premier jurisdiction 673 00:35:02,720 --> 00:35:09,080 globally for Taos and we see that the digitization of our our 674 00:35:09,080 --> 00:35:13,320 our financial sector, our economic sector and even 675 00:35:13,320 --> 00:35:16,320 technology is, is really the future. 676 00:35:16,320 --> 00:35:20,600 So you know if you really look at where we are, we are such a 677 00:35:20,600 --> 00:35:26,000 small, small island countries, a small island country in a fiscal 678 00:35:26,000 --> 00:35:29,640 setting. But with the digitization of all 679 00:35:29,640 --> 00:35:34,880 these sectors that I, I, I mentioned it is really an 680 00:35:34,880 --> 00:35:39,760 equalizer so to speak because then it there's really no 681 00:35:39,760 --> 00:35:44,200 excuses for us to be say they we we're at the end of the global 682 00:35:44,200 --> 00:35:47,560 supply chain. We are at the mercy of the 683 00:35:47,560 --> 00:35:50,040 global supply chain of goods and services. 684 00:35:50,360 --> 00:35:53,920 But with the with with the technology of the web three and 685 00:35:53,920 --> 00:35:57,520 all that stuff that actually is an equalizer that everybody's on 686 00:35:57,520 --> 00:35:59,680 the same equal footing so to speak. 687 00:36:00,640 --> 00:36:05,040 So we actually the advantage that we have we're very small 688 00:36:05,240 --> 00:36:10,920 we're we're very agile and we can actually have a short time 689 00:36:10,960 --> 00:36:14,480 turn around time to to be able to amend our laws and our 690 00:36:14,480 --> 00:36:21,360 regulations so we can be got Gator for these these 691 00:36:21,360 --> 00:36:26,640 organizations on the web. Three, I I say that that is 692 00:36:26,640 --> 00:36:32,000 going to be our advantage and and and you know our size could 693 00:36:32,000 --> 00:36:37,640 be used as an advantage for us in in the traditional settings 694 00:36:37,640 --> 00:36:41,760 of economies and finance where our sizes really are 695 00:36:41,760 --> 00:36:45,400 disadvantaged because we we lack the economy of scale. 696 00:36:46,600 --> 00:36:50,960 But with with with technology, sizes are advantage. 697 00:36:51,240 --> 00:36:54,960 Because you're nimble and and you can do things even if even 698 00:36:54,960 --> 00:36:58,680 if folks don't, you can get to consensus much much sooner than 699 00:36:58,680 --> 00:37:01,520 many other countries. I'd love in particular if there 700 00:37:01,520 --> 00:37:03,560 was an island that was large enough that you might be able to 701 00:37:03,560 --> 00:37:06,800 set up a self driving car zone or something like that just to 702 00:37:06,800 --> 00:37:09,800 kind of show it can be done, You know, are they, are they just, 703 00:37:09,800 --> 00:37:11,800 are they just a little like piece of rock in the middle of 704 00:37:11,800 --> 00:37:14,320 the ocean? Oh yeah, they're they can be 10 705 00:37:14,360 --> 00:37:16,800 acres land. They could be. 706 00:37:18,200 --> 00:37:20,720 No, they're actually land. They're like private land to 707 00:37:20,720 --> 00:37:24,600 where you can like like Richard Branson, who bought his own 708 00:37:24,600 --> 00:37:27,400 island in the Caribbean. Actually, you can actually lease 709 00:37:27,400 --> 00:37:31,280 your own island and develop and then have your own exclusive 710 00:37:31,280 --> 00:37:34,000 island for yourself. Or a resort. 711 00:37:34,760 --> 00:37:35,760 Wow. OK wait. 712 00:37:35,760 --> 00:37:39,080 So you can get a 10 acre island in the in the Marshall Islands 713 00:37:39,080 --> 00:37:41,760 and then of course you have to go and build the harbor and the 714 00:37:41,760 --> 00:37:44,720 dock and you have to be able to get people back and forth and so 715 00:37:44,720 --> 00:37:46,880 on and so forth or or just some of them come with that. 716 00:37:47,360 --> 00:37:50,600 No, no, it's up to you. What we're trying to do is when 717 00:37:50,600 --> 00:37:54,080 we digitize these islands because we're because you know 718 00:37:54,600 --> 00:37:59,080 we're trying to put it in the smart contract and by doing that 719 00:37:59,440 --> 00:38:01,960 we're digitizing the lease of that island. 720 00:38:02,000 --> 00:38:06,360 And then you go have access to an island by to yourself, let's 721 00:38:06,360 --> 00:38:09,600 say for 50 years, 400 years, whatever you. 722 00:38:10,000 --> 00:38:13,280 And then how do you it's like a one stop shop so you don't have 723 00:38:13,280 --> 00:38:16,640 to come to the Marshall Islands and actually go through the 724 00:38:16,640 --> 00:38:18,680 legal process of acquiring the land. 725 00:38:19,120 --> 00:38:22,120 We will do all of that and put him into an NFT. 726 00:38:22,120 --> 00:38:26,040 And when you buy the NFT, you're actually buying the lease and 727 00:38:26,040 --> 00:38:30,080 have rights exclusive right to that island to yourself for the 728 00:38:30,080 --> 00:38:33,000 next 50 to 100 years. That's really awesome. 729 00:38:33,000 --> 00:38:37,440 What is the biggest island like that you're selling or NFT ING 730 00:38:37,920 --> 00:38:40,880 leasing I should say. Well, it's different. 731 00:38:40,880 --> 00:38:44,760 I mean the island that the island that I always I was going 732 00:38:44,760 --> 00:38:51,440 to use it as, as you know as you start with, it's like a 733 00:38:51,440 --> 00:38:56,960 prototype is is like 3 acres, three to five acres, something 734 00:38:56,960 --> 00:39:00,920 like that of land. And is it, is it, I mean the 735 00:39:00,920 --> 00:39:03,640 Marshall Islands, it's a million square meters, I think you said 736 00:39:03,640 --> 00:39:07,880 a million square miles of ocean. So is that near one of the main 737 00:39:07,880 --> 00:39:10,000 islands or how? How should we think about that? 738 00:39:10,280 --> 00:39:12,320 Is it all the way out there? Is it near one of the main ones 739 00:39:12,840 --> 00:39:16,480 like a so so or how should we think about that? 740 00:39:16,480 --> 00:39:19,680 Are they all nearby or they all kind of scattered around the the 741 00:39:19,680 --> 00:39:20,560 ocean? Yeah. 742 00:39:20,680 --> 00:39:25,080 It's one of the is in one of the is on Kwajale and Atoll that's 743 00:39:25,080 --> 00:39:28,880 where the United States military base is at is one of the is one 744 00:39:28,880 --> 00:39:31,920 of the urban centers. But by the way. 745 00:39:31,920 --> 00:39:34,360 The Marshall Islands is one of the most popular tourist 746 00:39:34,360 --> 00:39:36,640 destinations for the richest people in the world. 747 00:39:37,120 --> 00:39:39,520 They take their yacht. And they park next to one of 748 00:39:39,520 --> 00:39:42,920 these mostly uninhabited islands and have some of the best 749 00:39:42,920 --> 00:39:45,480 snorkeling and scuba diving in the entire planet. 750 00:39:46,080 --> 00:39:49,000 Basically with your own private island, just for that week. 751 00:39:49,360 --> 00:39:50,720 Right. So, especially. 752 00:39:50,720 --> 00:39:53,440 For anyone who has a yacht, then you don't even have to deal with 753 00:39:53,440 --> 00:39:56,200 some of the challenges of flying in and. 754 00:39:56,720 --> 00:39:59,360 Having to build your. Own cabin on your own private 755 00:39:59,360 --> 00:40:00,800 island. Just stay on your yacht. 756 00:40:01,280 --> 00:40:04,000 Well, maybe a Dow could lease a yacht or something like that. 757 00:40:04,000 --> 00:40:06,680 That's really interesting. Yeah, there's. 758 00:40:06,680 --> 00:40:10,200 Got to be a yacht Dow already. Yeah, that's probably true. 759 00:40:10,840 --> 00:40:12,680 I think that that basically covers it. 760 00:40:12,680 --> 00:40:17,840 So just to kind of recap, you passed new law in 2022. 761 00:40:18,240 --> 00:40:21,520 It enables basically a Fiat company, crypto company 762 00:40:21,520 --> 00:40:25,760 interface for LCS and LC like entities, AKA Dows. 763 00:40:26,000 --> 00:40:28,000 It's crypto native. It has a full support of the 764 00:40:28,000 --> 00:40:30,320 government. It sort of extends what you've 765 00:40:30,320 --> 00:40:32,760 already done with your successful ship registry. 766 00:40:32,840 --> 00:40:34,360 This is not your first crypto law. 767 00:40:34,400 --> 00:40:36,600 You've actually been involved in this space for almost five years 768 00:40:36,600 --> 00:40:39,880 now, which is eternity and in crypto years and about 100 769 00:40:39,880 --> 00:40:43,080 entities have already been set up and people want to learn more 770 00:40:43,080 --> 00:40:48,400 than go to ithinkmydao.org. So Senator, Minister, do you 771 00:40:48,400 --> 00:40:51,240 have any closing words, anything you want to say? 772 00:40:51,520 --> 00:40:53,000 Oh, we just wanted to thank you for the. 773 00:40:53,000 --> 00:40:55,480 Time and. Really glad to be part of your 774 00:40:55,480 --> 00:40:59,920 outcast and looking forward to the future encounter. 775 00:41:00,760 --> 00:41:01,760 Wonderful. Great. 776 00:41:01,760 --> 00:41:04,720 And we'll come and visit the Marshall Islands and may buy, 777 00:41:05,440 --> 00:41:07,680 may buy an island or something. All right, wonderful. 778 00:41:07,680 --> 00:41:09,280 Thank you, Senator. Thank you, Minister. 779 00:41:09,280 --> 00:41:11,080 Thank you, Adam. Thank you, Balaji. 780 00:41:11,520 --> 00:41:13,040 OK. Well, thanks guys. 781 00:41:13,160 --> 00:41:14,800 This is great. Thanks for coming on.