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And in fact, in many countries, the DAO actually is a legal company/association, just not officially incorporated. But incorporating is not required everywhere
by street 10y ago
And in fact, in many countries, the DAO actually is a legal company/association, just not officially incorporated. But incorporating is not required everywhere for the normal laws to apply.
Just the fact that people put their money together and are acting as a group gives them various legal requirements. The fact that the DAO limits what they can do might interfere with their ability to follow the laws; that does not mean that the laws do not apply. You don't get to throw your hands in the air and say "we cannot pay taxes on our profits, it's physically impossible" when you made it impossible yourself by creating and/or associating with the DAO.
- dragonwriter 10y agoRight. In fact, an business entity that doesn't go through the formalities of becoming a legal corporation, LLC, etc., may expose its members to unexpected legal responsibilities. E.g., if the agreement were seen as forming a general partnership, each member would be jointly and severally liable for all legal liabilities of the partnership.
- irq-1 10y agoTwo of the big advantages of a modern joint-stock company are: limited financial liability and professional management. Management limits the need for input and activity of the investor. (You don't even need to vote your shares.) Do the members of the DAO want to vote on every little thing?
- dmix 10y agoCould they not just vote for professional managers to handle the small tasks for x compensation?
- fudged71 10y agoHowever, the members are anonymous, so it may be impossible to track down 100% of participants.