DAOs and innovative regulation: reconciling corporate and blockchain-based organizational models

Madalena Perestrelo de Oliveira

Chapter 14 in Decentralized Autonomous Organizations in the Legal Landscape, 2025, pp 275-291 from Edward Elgar Publishing

Abstract: This chapter underlines the fundamental philosophy of DAOs as an embodiment of freedom and self-governance, in contrast to the rigid structures of traditional corporate law, especially in Portugal. It argues that applying the existing legal framework introduces significant uncertainties and risks, particularly regarding the classification and liability of DAOs. It also discusses the need for bespoke regulation and the principles of functional and regulatory equivalence and technological neutrality, advocating for a regulatory approach that does not merely modify existing legal frameworks but instead considers the specific features and governance models of DAOs. The concept of algo-governance is introduced, shifting the regulatory focus from transparency requirements to the governance and robustness of decentralized protocols. The chapter explores the spectrum of decentralization and the difficulties in assessing and regulating DAOs. It proposes potential regulatory tools such as safe harbors, sandboxes, and the recognition of legal entity status for DAOs, drawing on examples from existing regulatory frameworks and model laws.

Keywords: Decentralized Autonomous Organization (DAO); Innovation regulation; Functional equivalence; Regulatory equivalence; Technological neutrality; DAO governance; European financial regulation (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035341610
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