A DAO regulatory mapping with application to a contestable control approach to DAO governance

Jeff Strnad

Chapter 16 in Decentralized Autonomous Organizations in the Legal Landscape, 2025, pp 311-327 from Edward Elgar Publishing

Abstract: In this chapter, we develop a regulatory map consisting of a taxonomy that is one way to classify diverse DAO regulatory approaches into categories. The goal is to generalize regulatory thinking in a way that transcends the large number of detailed and continually changing regulatory elements. We describe a new form of DAO governance that uses an auction mechanism to overcome entrenched control issues that have emerged for DAOs by creating a regime of temporary contestable control. The mechanism allocates control to the party with the most promising business plan, while at the same time distributing the surplus value from the plan in a way that tends to promote investment by other parties. We discuss how the mechanism enhances the ability of DAOs to meet their normative and operational goals in the face of diverse regulatory challenges and use that discussion as a starting point to explore the nature of the challenges more generally.

Keywords: Decentralized Autonomous Organization (DAO); DAO governance; DAO regulation; Securities regulation; Auction mechanisms; Corporate governance; Corporate control (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035341610
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