Decentralised Autonomous Organisations: Technology, Finance, and the Law

Decentralised Autonomous Organisations (DAOs) are a novel form of digital organisation, designed to pool and manage resources as well as allocate control for various objectives, ranging from issuing cryptocurrencies and stabilising the value of cryptoassets to support the operation and security of a blockchain network. Their defining features of ‘decentralisation’ and ‘disintermediation’ introduce significant governance and legal risks. By operating on decentralised ledger technologies such as blockchain and other emerging systems, DAOs not only present legal and regulatory challenges but also increase cybersecurity vulnerability. DAOs have facilitated pooling resources, notably through initial coin offerings (ICOs), and have also functioned as management mechanisms for ‘monetary’ stabilisation. These developments highlight the need to reassess regulatory assumptions and adapt legal frameworks to the evolving nature of digital organisations. DAOs have catalysed a new wave of legal studies in organisational law, financial regulation, property law, and private international law. They operate at the intersection of technology, finance and law, prompting a new wave of legal scholarship. As these programmable/code-based organisational structures challenge traditional legal forms, a coherent regulatory and conceptual paradigm is needed to ensure trust and safety in this emerging digital space.