Traditional states and countries often pose challenges for DAOs seeking recognition, as they do not acknowledge the existence of blockchain-based organizations. In response to this issue, MIDAO has introduced the DAO Act in 2022. This groundbreaking legislation establishes LLC regulations in the Marshall Islands, explicitly acknowledging the significance of blockchain technology and DAOs. By facilitating the incorporation process, MIDAO enables DAOs to obtain corporate personhood, limited liability, and tax entity status within the RMI.