D.A.O.
DECENTRALIZED AUTONOMOUS ORGANIZATION
LAWYERS
Decentralized Autonomous Organization Lawyers
The crypto lawyers at Whale.Law manage the legal issues that come with DAOs. We start with the “legal wrapper.” This is the decision of whether a formal legal entity is needed for the DAO’s performance, and to protect the DAO participants. Questions along this line include:
Does the DAO intend to own property?
Will the DAO be involved with its own intellectual property?
Will there be a need for the DAO to be represented legally?
Will the DAO need a bank account?
Will the DAO need banking infrastructure such as international money transfers (crypto or SWIFT), bank checks, KYC compliance, AML compliance, will it be making payments or credits?
Will the DAO be involved with crypto to fiat currency transfers (onboarding)
Will the DAO need a tax residence?
Do the members of the DAO wish to avail themselves of the laws and regulations of a particular jurisdiction?
Do you want to choose the location ... where the lawsuit will be litigated, if the DAO or its members get sued?
Are DAO members concerned with legal liability? In other words, what are the risks of joint and several liability or being considered members of a partnership?
Do the DAO members want to be affiliated with a particular location that is pro Web3?
The Type of DAO Matters
There are different types of Decentralized Autonomous Organizations. Each type functions to achieve different aims. One must specifically define the type of DAO contemplated before a Crypto DAO lawyer can chart out the best legal path for your DAO. For a DAO type this might include a:
Protocol DAO
Collector DAO
Operating System DAO
Service DAO
Investment DAO
Grant DAO
Entertainment DAO
Media DAO
Social DAO
Location matters
There are a number of jurisdictions commonly considered for DAO incorporation. These include:
Wyoming, United States
Vermont, United States
Cayman Islands
British Virgin Islands
Switzerland
Dubai / U.A.E.
Special Zones
There are a number of factors that influence the decision of where to incorporate the DAO. Some jurisdictions have more stable regulatory environments. Other jurisdictions have a more fluid (open to interpretation) regulatory framework. Tax implications vary from location to location. Some countries better support certain types of DAOs, but not other DAO types. There is no one “right” answer on where to incorporate a DAO. The choice of where to incorporate the decentralized autonomous organization is choosing the best mix of (1) the aspects of the particular DAO and (2) the aspects of the location.
The Type of Legal Wrapper Matters
Different types of DAOs benefit from different types of entity structures that serve to facilitate DAO functions, and the purpose of the DAO. These structures include:
General Partnership
Social Welfare Non-Profit entities – 501(c)(3) organizations
DAO to advocate for Social /Political Change – 501(c)(4) organizations
Limited Liability Companies
Trust
The crypto lawyers at Whale.Law manage the legal issues of DAO “legal wrappers,” DAO litigation, and activity performance. Contact us if it is time to move forward with solving your upcoming DAO legal issues.
Let's Discuss your D.A.O.
It is time to tailor a legal wrapper for your DAO to limit taxes, legal liability, and solve regulatory issues.
Trial lawyer Matt Hamilton graduated from the University of Missouri – Columbia in 1995 with Science degrees in Logistics, Marketing, and Business Administration.
Matthew J. Hamilton Juris Doctor & Crypto Lawyer