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How Can a DAO Structure Itself to Limit Individual Member Liability?

A DAO can limit individual member liability by forming a legal entity, such as a Limited Liability Company (LLC) or a non-profit foundation, in a jurisdiction that recognizes and provides liability protection for DAOs (e.g. Wyoming, USA).

This legal "wrapper" acts as the entity that enters into contracts and assumes liability, shielding the individual token holders.

How Is Liability Distributed among Members of a DAO?
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What Are the Primary Legal Ambiguities When Translating Traditional Financial Agreements into Smart Contracts?
How Does a DAO Differ from a Traditional ‘Limited Liability Company’ (LLC)?