Wachtell Lipton Discusses Legal Considerations for Decentralized Autonomous Organizations

We recently wrote about the emergence of a new breed of business organizations — decentralized autonomous organizations (DAOs) — to contend that the governance design for these blockchain-based organizations should heed some of the hard-fought lessons that have helped to form the pillars of modern corporate governance.  It is also important to confront certain features of DAO governance that present distinct challenges for counterparties seeking to invest or engage in commercial transactions with DAOs.  A few recent DAO controversies highlight the need for greater clarity in the legal status of DAOs, more robust governance, and a reckoning with the distinct … Read more