The post New Global Epicenter for Web3 Foundations and DAOs appeared on BitcoinEthereumNews.com.

The Cayman Islands are rapidly solidifying their position as a global hub for decentralized autonomous organizations (DAO) and Web3 projects. This phenomenon is driven by an impressive increase in legal entity registrations in recent years. According to data from the General Registry of the Cayman Islands, there has been an annual increase of 70% in the registrations of foundation companies, legal structures often used as legal “wrappers” for DAOs or as administrators of Web3 ecosystems. By the end of 2024, the register recorded over 1,300 foundation companies, compared to 790 the previous year. In just the first few months of 2025, more than 400 new foundation companies have already been registered. This trend highlights how the Cayman Islands have become the preferred choice for those operating in the blockchain and decentralized technologies sector. Foundation Company: The Legal Heart of DAOs DAOs are blockchain-based organizations that operate through smart contracts, without a central authority. Developers define governance rules, raise funds through token issuance, and grant token holders voting rights. Decisions are made collectively, with changes requiring community consensus. DAOs are primarily applied in DeFi protocols and decentralized social platforms. For many DAOs, the Cayman Islands foundation company represents the ideal solution for interacting with the real world. This structure offers a balance between the operational flexibility required by DAOs and formal legal protection, safeguarding token holders from personal liability for obligations or legal disputes involving the DAO. Even for Web3 projects without a DAO, the Cayman foundation company has become the preferred choice as the legal entity responsible for managing the ecosystem and interacting with external parties. The Push of U.S. Legislation The rise in popularity of foundation companies to “wrap” DAOs has been bolstered by recent developments in U.S. legislation. Specifically, the Samuels v. Lido DAO ruling had a significant…

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Filed under: News - @ December 1, 2025 7:25 pm