Decentralized Autonomous Organizations: Governance Using Blockchain and Smart Contracts
Mitigating Ownership Risk, Limitations of DAO in Litigation, Ability to Raise Capital
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will discuss an emerging new form of organization, the decentralized autonomous organization (DAO). The panel will discuss how blockchain and smart contracts permit this novel form of governance structure. The panel will discuss the risks and advantages of utilizing a DAO instead of, or in tandem with, a traditional entity like a corporation, LLC, or foundation.
- Decentralized autonomous organizations
- Establishing via blockchain
- Smart contracts
- Limitations of DAOs
- Ownership liability
- Lack of plaintiff
- Inability to enforce a contract
- Anti-money laundering law compliance
- Connecting with the traditional financial system
- Advantages to traditional business forms
- Structuring of DAO "wrappers"
- International solutions
- Crypto tax reporting
The panel will address these and other key issues:
- How is a DAO established?
- What are the limitations of using a DAO as a business structure?
- What are the advantages of using a DAO?
- What are some of the novel concepts emerging from DAOs?
- What pending legislation and regulations are affecting the use of DAOs?
Mr. Bench is chair of the firm’s corporate practice group, where he helps public and private companies with... | Read More
Mr. Bench is chair of the firm’s corporate practice group, where he helps public and private companies with international and domestic business transactions. His clientele includes companies from Asia, Europe, Africa, and the Americas. He co-hosts the firm’s weekly Global Law and Business podcast, which covers legal and economic business developments around the world. He is a regular contributor to the award-winning China Law Blog and the award-winning Canna Law Blog, where he shares his practical insights into doing business internationally and in the cannabis and emerging products industries. Mr. Bench regularly presents to business owners and organizations regarding international business transactions, particularly foreign direct investment and the international cannabis trade.Close
Daniel L. McAvoy
Shareholder; Co-Chair FinTech and Blockchain Practice
Mr. McAvoy takes a practical and knowledgeable approach to the law of digital assets, private funds, securities, and... | Read More
Mr. McAvoy takes a practical and knowledgeable approach to the law of digital assets, private funds, securities, and other investments from a transactional, regulatory, fundraising, and formation perspective. As co-chair of the firm’s FinTech and Blockchain practice, he frequently works at the intersection of all of these areas, particularly with respect to the formation and launch of private investment funds, including those with a digital asset or FinTech strategy; offerings by and investments into organizations in the crypto space; structuring decentralized autonomous organizations (DAOs); navigating the launch of non-fungible token projects; asset fractionalization; coordinating complex international projects; and helping digital asset organizations comply with the rapidly-evolving regulatory environment. Mr. McAvoy is a trusted advisor to numerous investment advisers, digital asset projects, DAOs, fund sponsors, broker-dealers, and investors, and has represented a range of organizations, from startups to Fortune 500 companies to unincorporated entities through all portions of the corporate life cycle.Close