What is DAO? Is It A Legal Entity?

December 29, 2022 Story: Mohd Javed

A decentralized autonomous organization (DAO) is a software running on a blockchain.

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It offers users a built-in model for the collective management of its code.

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DAOs differ from traditional organizations managed by boards, committees and executives.

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Rather than being governed by a limited group, DAOs use a set of rules written down in code and enforced by the network of computers running a shared software.

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Popularized through cryptocurrency enthusiasts and blockchain technology, DAOs are used to make decisions in a bottom-up management approach.

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DAO is a legal entity and it is same as all other legal entities but with some very important characteristics.

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DAOs have also directors with a centralized form of governance and ownership.

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