DAO: The Structural Issues
Blockchain technology has evolved to offer programmatic solutions for augmenting the governance potency of organizations by implementing smart contracts, the execution of which is guaranteed upon the occurrence of certain events. This allows for an organizational scale of previously unseen magnitude and geographical reach.
Until very recently, such projects have been operating without any formal legal structure recognized by any of the U.S. states, and, thus, without a limited liability protection for the members. This, naturally, creates a slew of possible and actual legal problems that could hamper further economic and social progress.
Some states have recently recognized DAO – Decentralized Autonomous Organizations (or DAC – Decentralized Autonomous Companies).