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How Does a DAO Differ from a Traditional Corporation in Terms of Liability?

A traditional corporation offers limited liability to its shareholders, meaning their personal assets are generally protected from the company's debts. The legal status and liability of DAOs are still evolving and often unclear, potentially exposing DAO members to personal liability for the organization's actions, depending on the jurisdiction.

The lack of a central legal entity complicates legal protection.

How Does a DAO Differ from a Traditional ‘Limited Liability Company’ (LLC)?
How Do Decentralized Autonomous Organizations (DAOs) Differ from Traditional Corporations?
Are Smart Contracts Legally Binding?
What Is the Legal Status of a DAO Treasury in Major Jurisdictions?