Robert A. Schwinger
In the world of blockchain and smart contracts, the idea of a “decentralized autonomous organization”—often referred to simply as a “DAO”—that uses these technologies to pursue a business purpose with minimal human intervention has been gaining increasing attention. Although the concept of DAOs goes back several years, developers of FinTech and DeFi applications more and more have looked to DAOs to play a role in the functioning of their ventures.
But what exactly are DAOs? How do they operate? How do they compare to traditional legal entity structures, such as corporations and limited liability companies, in terms of the benefits they offer and the risks they present?
