14 ms·

There is no fiat contract to enforce. There's simply a legal trust (the DAO) that holds property in perpetuity. All contracts and liabilities exist in crypto sp

There is no fiat contract to enforce. There's simply a legal trust (the DAO) that holds property in perpetuity. All contracts and liabilities exist in crypto space. The only way a fiat court could unwind the structure is if they declared the trust structure itself to be invalid. That's extremely rare in common law systems, because very few parties will have standing to challenge the trust formation. Moreover the risk can be minimized by making sure the DAO is incorporated in a friendly jurisdiction, like the Cayman Islands.[1] Since US law allows foreign entities to own domestic property, you're not tied to the jurisdiction where the property's located. [1]https://www.ogier.com/publications/the-foundation-company-as-a-decentralised-autonomous-organisation-dao-in-the-cayman-islands https://www.ogier.com/publications/the-foundation-company-as...

knorker 5y ago
> The only way a fiat court could unwind the structure is if they declared the trust structure itself to be invalid. Right. Which it would do at the drop of a hat if it got in the way of a lawful judgement. It'd need to get there, sure, but yes a court can actually order the blockchain to be incorrect as it relates to ownership of a thing. If nothing else the government has standing. Emminent domain, for example. And once the blockchain is wrong, it's wrong. > by making sure the DAO is incorporated in a friendly jurisdiction, Ha ha ha, do you think a french court will allow a tax haven company to make french courts null and void within the borders of France? That's basically giving up sovereignity. Who's going to stop french police vacating a property? Math? I don't know if you've read court judgements ever, but it's extremely common that things involved in a crime are considered "spent", "consumed" (I forget the word). That means it's not yours anymore. Your "but It's mine on the blockchain!" means zilch.

knorker 5y ago

> The only way a fiat court could unwind the structure is if they declared the trust structure itself to be invalid. Right. Which it would do at the drop of a hat if it got in the way of a lawful judgement. It'd need to get there, sure, but yes a court can actually order the blockchain to be incorrect as it relates to ownership of a thing. If nothing else the government has standing. Emminent domain, for example. And once the blockchain is wrong, it's wrong. > by making sure the DAO is incorporated in a friendly jurisdiction, Ha ha ha, do you think a french court will allow a tax haven company to make french courts null and void within the borders of France? That's basically giving up sovereignity. Who's going to stop french police vacating a property? Math? I don't know if you've read court judgements ever, but it's extremely common that things involved in a crime are considered "spent", "consumed" (I forget the word). That means it's not yours anymore. Your "but It's mine on the blockchain!" means zilch.