A DAO (decentralized autonomous organization) is an online community that uses blockchain technology to function and transact toward a specific purpose or mission (e.g. an investment, global community service, or sending one lucky DAO member to the moon).
In DAOs there are no hierarchies and no central control. DAOs also have no corporate form and therefore no bylaws, operating agreements, contribution agreements, or subscription agreements. The rules of investing and participating, as for cryptocurrencies, are set out on a blockchain in smart contracts, which contain some key terms but rarely track existing corporate laws.
DAOs that fail to implement optimal structural integrations risk being treated as unintentional partnerships complete with joint and several liability for all DAO participants and an inability to enforce any of its contracts with the outside world.
Like cryptocurrencies and blockchains, DAOs are inherently borderless and involve people and organizations across the globe, requiring legal expertise that also extends beyond national borders.
In 2021, Wyoming became the first U.S. state to attempt to provide more legal certainty to DAOs. Other states followed, and international jurisdictions are also vying for the coveted title of most crypto-friendly jurisdiction.
Join Jonathan Bench for a live video broadcast hosted by the Federal Bar Association. This event will cover hot topics in LLCs, including WY DAO LLCs, entity type taxation, current operating issues, and ethics.
Date: October 6, 2022
Time: 11 AM – 4:40 PM EST
Jonathan Bench is chair of Harris Bricken’s corporate practice group and managing attorney of the firm’s Salt Lake City office, where he helps public and private companies with international and domestic business transactions. His clientele includes companies from Asia, Europe, the Middle East, Africa, and the Americas. Jonathan has worked and consulted in the U.S., Asia, and South America and is fluent in Chinese and Cantonese. He is also on the board of directors for World Trade Center Utah.
He regularly counsels business owners and presents to national and global trade organizations regarding international business transactions, particularly foreign direct investment. Jonathan is also an emerging expert in the fast-moving and complex Web3 ecosystem, including decentralized autonomous organizations (DAOs), decentralized finance (defi), cryptocurrencies, coins and tokens, including non-fungible tokens (NFTs), and smart contracts. He has worked on wide-ranging blockchain projects involving DAO communities, NFT artists and studios, blockchain developers, metaverse companies, and celebrity brand influencers.