Guidelines, templates and tooling for forming and operating Limited Liability DAOs (LL-DAOs).
Around the world, researchers and practitioners are exploring the problem of interfacing blockchain-based organizations (DAOs) with legacy legal systems.
In July, 2018 Vermont enacted Act 205, which permits limited liability companies to manage governance, ownership and conduct material operations on a blockchain [1][2][3].
This new legal entity classification, the blockchain-based LLC (BBLLC), provides a model to begin designing and testing DAO legal wrappers in the wild. If properly utilized, such novel frameworks could empower DAOs to fluidly interoperate with the existing legal system while shielding participants from ordinary business liabilities.
This research probes a live case-study of a BBLLC-linked DAO. In doing so, we hope to address open research questions regarding the design and viability of DAOs with traditional legal standing. We also hope to highlight insights from this exercise that will allow lawmakers to iterate and improve upon blockchain regulatory frameworks like the BBLLC.
The collaboration centers on two core objectives:
-
Launch a pilot LL-DAO
-
Form and deploy a Limited Liability DAO as a Vermont BBLLC under the guidance of local advisors who assisted with development of Act 205.
-
Prepare the legal agreements and operational processes necessary for the DAO to legitimately conduct business activities and manage its core operations through persistent blockchain programs (Smart Contracts).
-
-
Develop resources for LL-DAO formation and maintenance
-
Guidelines that address all Challenge Areas.
-
Template Library of useful legal agreements.
-
Tooling for automating formation and maintenance workflows.
-
Adapted from CL+B Fest 2019 DISCUSS tracks
-
How can regulatory sandboxes be used to test and advance the blockchain regulatory space?
-
How might the co-op model further blockchain governance?
-
Is there a legal entity type for a DAO that wouldn't take away that DAO's fundamental properties?
Adapted from COALA 'Alegality' working group
-
Legal Avatars -- create legal representatives, surrogates, delegates, and/or custodians for various functions of blockchain-based systems
-
Support interactions between DAOs and the legal world --
-
Identify the limitations of current forms of interactions with the legal world
-
Elaborate new mechanisms e.g., decentralized insurance, contract and property APIs
-
-
DAO Governance -- enforcement mechanisms and underlying ethics of code-based rules
The materials provided in this document is for general information purposes only. It is not intended to provide legal advice or opinions of any kind and may not be used for professional or commercial purposes. No one should act, or refrain from acting, based solely upon the materials provided in this document, any hypertext links or other general information without first seeking appropriate legal or other professional advice. All information in this document are provided for your convenience only. These materials may have no evidentiary value and should be checked against official sources before they are used for professional or commercial purposes. It is your responsibility to determine whether these materials are admissible in a given judicial or administrative proceeding and whether there are any other evidentiary or filing requirements. Your use of these materials is at your own risk.