DOA set up


A DAO corporate structure is a rather new concept. In Essence, a DAO should be decentralized. However, attempts are being made to formalize DAO structures from a legal point of view. The structure should behave in a way that reflects the behavior of the DAO ecosystem. This warrants a case-by-case analysis, which can be based on the white paper of a certain project. 

The goal, generally, is to link corporate governance (i.e. voting rights) of the structure with a unit denomination that the structure can provide (this can be equity but is usually tokens). 
The anonymity and decentralized nature of crypto impacts how governance is handled. The same rules that would affect traditional startups and corporations either don’t necessarily apply to the crypto space or are more difficult to enforce. That said, DAO structures have their own forms of governance built-in, and it’s important to be aware of this when setting up a legal structure. 

We expect that more DAO structures will want to formalize their structure soon. If you are also considering formalizing your DAO structure, or if you are wondering how this works, reach out to us today!

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