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Legal Framework
How to enable the DAO to enter contracts and limit personal liability for DAO members.
A decentralized autonomous organization, or a “DAO,” is an “organization” encoded as a transparent computer program, controlled by the organization members, and not by a central corporate entity.
In order to facilitate the entering of contracts, CureDAO will utilize an unincorporated nonprofit association (UNA) as a ‘wrapper’. Unincorporated nonprofit associations are broadly defined and, in many jurisdictions, can consist of just a few people agreeing to work, either orally or with an agreement, on a charitable endeavor together.
The Uniform Unincorporated Nonprofit Association Act (UUNAA) allows the DAO members to loan IP to the UNA. Then DAO members may be repaid with interest from the UNA.
A potential means by which personal liability could be limited for the members of the DAO may be through the creation of a public benefit limited liability company. The downside is that the DAO would need to more formally adopt a corporate structure than a UNA requires. However, it would also create limited liability for its members as a matter of law.
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Last modified 1yr ago