” This CLE course will discuss this emerging new form of organization, the decentralized autonomous organization (DAO), and how blockchain and smart contracts permit this novel form of governance structure. The panel will also discuss the risks and advantages of utilizing a DAO instead of, or in tandem with, a traditional entity like a corporation, LLC, or foundation.
Due to the growing decentralized finance (DeFi) movement, a desire to use blockchain to eliminate intermediaries, and tighter governmental regulation over digital assets and cryptocurrencies, DAOs have emerged as a new way to form and structure business relationships. DAOs are run autonomously and allow individuals to work with like-minded people worldwide, governing through the use of tokens or other digital assets. A DAO’s control and governance functions are distributed horizontally across its members, eliminating or reducing the need for a central authority and thus making them attractive to DeFi enthusiasts and Web3 projects.