Does Token Ownership Automatically Imply Joint and Several Liability?
No, token ownership alone does not automatically imply joint and several liability. Liability depends on the legal classification of the DAO.
If the DAO is deemed a general partnership, then yes, all members (token holders) could be liable. If the DAO is legally structured as an LLC or corporation, liability is limited.
Glossar
Token Ownership
Attribution ⎊ Token ownership is cryptographically established by the possession of the private key corresponding to the address holding the asset on the ledger, providing immutable proof of control.
Legal Classification
Jurisdiction ⎊ Legal classification within cryptocurrency, options trading, and financial derivatives is fundamentally shaped by jurisdictional boundaries, impacting regulatory oversight and enforcement mechanisms.
Liability
Exposure ⎊ This quantifies the potential financial downside an entity faces from its obligations, whether stemming from unhedged positions in options or from collateral shortfalls in lending protocols.
Ownership
Claim ⎊ The concept of ownership within cryptocurrency, options, and derivatives signifies a legally recognized or practically enforced right to control, benefit from, and dispose of an asset or contractual position.