ABSTRACT
The article considers the legal structure of decentralised autonomous organisations (DAOs). DAOs leverage smart contracts to encode their management and operational rules onto the blockchain with a vision to enable autonomous operation without a centralised authority. The novel nature of DAOs presents legal challenges and opportunities that are yet to be addressed in existing frameworks. The current legal frameworks are yet to be fully equipped to accommodate DAOs’ distinctive attributes. This article analyses, with reference to the agency theory and the actual operation of DAOs, the core problems of governance, legal personality and liability of DAOs. It is argued that developing a DAO-specific legal framework that retains its intrinsic benefits is imminently necessary for the future and responsible development of DAOs.
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Kwan Yiu Cheng, The legal structure of decentralised autonomous organisations (DAOs): governance, legal personality and liability, Information & Communications Technology Law. Published online: 21 February 2025.
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