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Decentralised autonomous organisations (DAOs): Scoping paper

Published by the Law Commission of England and Wales, this scoping paper offers a detailed look at the legal status and regulatory challenges posed by DAOs. The

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Abstract

Published by the Law Commission of England and Wales, this scoping paper offers a detailed look at the legal status and regulatory challenges posed by DAOs. The report avoids technical jargon in favor of clear, legally grounded analysis, examining whether existing corporate frameworks can be applied to decentralized entities. It explores the concepts of separate legal personality, liability of participants, and the enforceability of ‘smart contracts’ within a traditional court setting. The paper emphasizes the current ‘legal vacuum’ many DAOs inhabit and outlines the potential risks for investors and contributors alike. As a seminal regulatory document, it provides the foundation for future legislative efforts to harmonize the operations of DAOs with existing legal systems, making it essential reading for policymakers and legal professionals in the crypto-asset space. Authors: Law Commission of England and Wales Publication: Technical Report Publication date: 2024-01-01

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Key findings

  • DAOs do not currently fit neatly into established legal frameworks like corporations or partnerships.
  • The potential for unlimited liability among DAO participants is a major barrier to widespread adoption.
  • There is a significant need for legal clarity regarding the enforceability of code-based governance decisions.
  • Regulatory frameworks must be flexible enough to account for the unique, decentralized nature of these organizations.

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Citation

Law Commission of England and Wales (2024). Decentralised autonomous organisations (DAOs): Scoping paper. Technical Report. https://cdn.websitebuilder.service.justice.gov.uk/uploads/sites/54/2026/01/Decentralised-autonomous-organisations-scoping-paper.pdf
Canonical knowledge ID: research:decentralised-autonomous-organisations-daos-scoping-paper