Where Is the 'Jurisdictional Nexus' of a DAO Typically Considered to Be? ⎊ Path

Where Is the ‘Jurisdictional Nexus’ of a DAO Typically Considered to Be?

The jurisdictional nexus of a DAO is highly debated. Courts may look to where the core developers are located, where the majority of token holders reside, where the DAO's funds are held, or the jurisdiction specified in any legal wrapper.

Without a legal wrapper, the lack of a clear nexus increases the risk that multiple jurisdictions may claim authority.

What Is a ‘Choice of Law’ Clause and How Can It Be Implemented in a Smart Contract?

How Does Jurisdictional Arbitrage Affect the Choice of ICO Launch Location?

Can a Developer Still Manipulate the Token Price Even If the Liquidity Is Locked?

What Is the Concept of ‘Private International Law’ in the Context of Blockchain?

Can a DAO Enter into Legally Binding Contracts with Traditional Entities?

How Does the “Major Non-Financial Asset” Status Affect SEC Vs. CFTC Jurisdiction?

Which of the Four Howey Test Prongs Is Most Debated for Utility Tokens?

What Is the Role of “Legal Wrappers” (E.g. Incorporating a DAO as an LLC) in Shielding Participants from Liability?

Glossar

Jurisdictional Nexus

Connection ⎊ Jurisdictional Nexus is the demonstrable legal link between a specific geographic location or legal system and the parties, assets, or activities involved in a decentralized finance transaction, which is necessary for a court to assert authority.