How Does the Concept of “Legal Wrapper” Attempt to Reconcile DAOs with Traditional Law?
A "legal wrapper" attempts to reconcile Decentralized Autonomous Organizations (DAOs) with traditional law by establishing a recognized legal entity (such as a foundation, limited liability company, or non-profit) in a friendly jurisdiction (e.g. Wyoming, Cayman Islands).
This entity acts as a formal legal interface for the DAO, allowing it to sign contracts, pay taxes, and be held legally accountable. The wrapper provides a clear point of contact for regulators, bridging the gap between the decentralized, code-based operation and the requirements of the traditional legal system.