DARe isn't just about forming a “company on the
blockchain.” Your DAO lives on-chain already. What DARe does is
bridge that blockchain-native entity to something real in the eyes
of the law. Think of it as giving your DAO a body without
compromising its soul. Suddenly, it can hold assets, sign contracts,
open bank accounts, and exist as a legal entity under UAE federal
law.
Here’s why the structure matters so much. DARe
doesn’t force you into an existing mold like an LLC or a foundation,
models that often misfit and scramble DAO dynamics. Instead, it uses
the tried-and-tested
Company Limited by Guarantee model. No
shareholders, no dividend chasing—just a non-profit structure that
aligns perfectly with collective goals. Any revenues go back into
the DAO’s mission, and liability is capped by a nominal guarantee
from founding members. Yes, you heard that right: that guarantee can
even be crypto, enforced on-chain.
It’s clean, modern,
and built for Web3.But let’s talk governance, because that’s where
things get messy if you don’t get it right. DARe asks for two
things: a founding member (to anchor the structure legally) and a
council, one to ten people, whose job is strictly off-chain:
compliance, filings, signatures, and admin. One of them
needs to be a licensed local agent.
And
then there are token holders, who remain the real decision-makers,
proposing and voting through smart contracts. It's elegant,
your DAO stays decentralized on-chain, with just enough legal
scaffolding to operate in the real world. DARe also adapts as you
grow. RAK DAO gives you a “Startup DAO” regime if you’re small and
scrappy, under 100 members, under $1M treasury, no public token
sales. It’s lean, quick, affordable. But as you scale and the stakes
get bigger, you can shift into the “Alpha DAO” world. More members,
higher treasury, ability to issue public tokens, and even create
sub-DAOs with their own governance.
It’s a clear path,
from prototype to powerhouse.
There is compliance, annual
accounts, basic AML/KYC, disclosure of large token holders. But in
return, you get limited liability, legal recognition, access to
banking, and 0% tax in RAK.
And this is the crucial
distinction,
you cannot form a regular LLC in RAK DAO, if you need a regular LLC then you need
to form your company in the
RAK ICC Freezone
instead.
RAK DAO exists to do one thing only, give DAOs
a real-world presence without jamming them into ill-fitting legacy
structures. By keeping its scope narrow, it keeps its offering
sharp.
At Spindipper, we’ve partnered with RAK DAO
because we’ve seen what happens when DAOs ignore this. They either
operate in a legal grey zone, or they squeeze themselves into
foundations or LLCs that break their governance model. DARe is
different. It’s purpose-built.
If your DAO is more than
a Discord chat, if it’s moving real assets, if it needs doors to
open and contracts to stick, this is the framework.You can’t buy an
LLC here. You can’t register your café. But if you want your DAO to
step into reality without losing what makes it a DAO, then DARe is
the only show in town. And Spindipper is here to help you make that
move.
If you’re wondering how this stacks up globally,
consider the alternatives. In Wyoming, the much-hyped DAO LLC
structure has made headlines, but it’s essentially an LLC with DAO
language bolted on. That means shareholders, operating agreements,
and corporate taxes.
It can work for small, experimental
projects, but it often forces DAOs into a shareholder-first mindset
that doesn’t match the way tokens and communities operate.Then
there’s Switzerland, where the foundation model has been a favourite
for crypto projects. It provides credibility and regulatory clarity,
but it’s slow, expensive, and rigid. A foundation is ultimately a
top‑down structure, with a board that legally holds all the power.
Token holders are not the core of the governance process. For many
DAOs, that’s the opposite of what they’re trying to achieve.
The
Cayman Islands and Marshall Islands have offered wrappers too, but
those tend to be offshore solutions: they provide some legal
recognition, but often struggle to secure strong banking
relationships or credibility with institutional investors. They also
carry the baggage of being 'offshore' in the eyes of
regulators. RAK DAO’s DARe framework is different because it was
designed specifically for DAOs, in a jurisdiction that is fully
regulated under UAE law.
It gives you the legitimacy of
a real legal system, the tax benefits of a free zone, and the
flexibility to keep your DAO governance truly on-chain. That
combination is rare, and it’s attracting attention from founders who
are tired of forcing square pegs into round holes.
If
you’re serious about building in Web3 or the global crypto economy,
RAK DAO
is where you want your flag planted.
As an official RAK DAO partner Spindipper can directly form your
company in the freezone with no third-party involvement
, and introduce you to the freezones banking partner RAK Bank to
quickly get your business formed and operating.
Click
here to see our
UAE LLC formation plan, and feel free to get in touch with us if you have any questions,
or want to talk through the various RAK DAO options and nuances.
