The proposed "Wyoming Decentralized Unincorporated Nonprofit Association Act" establishes a legal framework for the formation and management of decentralized unincorporated nonprofit associations in Wyoming. It defines key terms such as "administrator," "charitable purpose," and "digital asset," and sets forth operational guidelines, including a requirement for a minimum of 100 members. The bill allows these associations to engage in profit-making activities as long as the profits are used to further their nonprofit purposes. It also clarifies that members and administrators are not personally liable for the association's debts or obligations, and it recognizes these associations as separate legal entities capable of asserting claims and defending themselves in legal proceedings.

In addition to establishing governance and operational procedures, the bill introduces provisions for utilizing distributed ledger technology, such as smart contracts, for decision-making processes. It outlines requirements for member approval on significant actions, indemnification for members and administrators, and processes for winding up and merging associations. The legislation emphasizes the protection of charitable assets during mergers and includes a severability clause to ensure the enforceability of remaining provisions if any part is deemed invalid. The act is scheduled to take effect on July 1, 2024.