Behind the recent volatility of crypto asset prices lies the disruptive technology of blockchain and the distributed, decentralized ethos that spawned it. And a new kind of corporate structure designed to fit the culture behind this technology has emerged: Decentralized Autonomous Organizations (DAOs). Just as LLCs were widely adopted in the 1990s, DAOs may soon become a more popular corporate form. Unlike traditional corporate structures where the goal is to centralize decision-making, DAOs decentralize control, vesting power and purpose among tokenholders themselves. Unsurprisingly, these organizations raise legal questions.
In his article, “How Decentralized Autonomous Organizations May Shape the Future of Corporate Structures,” published recently on Bloomberg Law, Croke Fairchild Morgan & Beres Partner Andrew Gilbert discusses the emergence of DAOs as a corporate form, and the significant legal issues that arise for lawyers advising traditional corporate clients looking to do business with or invest in DAOs.
Read the entire article here.