ABSTRACT
This paper examines the legal implications of Decentralized Autonomous Organizations (DAOs), which operate under different circumstances than traditional legal entities. DAOs seek to span the globe, bringing together thousands of members regardless of their physical location or cultural or financial background. However, their decentralized structure raises complex questions about the determination of applicable law, corporate status, and external actions that cannot be adequately answered using classical theories. The paper discusses whether legal recognition and regulation of DAOs should provide for limited liability, and the legal and practical challenges associated with such recognition. The paper concludes by discussing the need for a legally secure framework for consumer protection, tackling the often-unknown liability risk associated with DAOs.
Mienert, Biyan, Limited Liability as Applied to DAOs (April 27, 2024).
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