How Do DAOs Handle Dispute Resolution Compared to Corporate Legal Departments?

DAOs typically handle dispute resolution through decentralized, community-driven mechanisms rather than traditional corporate legal departments. Some use on-chain arbitration services like Aragon Court or Kleros, where token-holding jurors are incentivized to rule on disputes according to the DAO's charter.

Others rely on their own governance process, where members vote on a resolution. This contrasts with corporations, which use internal legal counsel, mediation, and the formal court system to resolve conflicts, a process that is often private, slow, and expensive.