Digital Assets and DAOs: New Theories of Liability


Alexander C. Drylewski Stuart D. Levi Daniel Michael Andrew M. Parks

The question of whether decentralized autonomous organizations (DAOs) — project governance systems where “governance tokens” holders can make and vote on proposals relating to governance of a digital asset protocol — are legally cognizable entities is currently moving through the courts. Partners Alexander Drylewski, Stuart Levi and Daniel Michael and associate Andrew Parks discuss how the answer could deter individuals and entities from participating in DAOs, significantly impacting the viability of decentralized governance structures.