Kutak Rock
Prickly Pear
Legal Alerts for the Arizona Business Community
August 2022
By: Christina Ribble and London Burns
Digital assets, including DAOs—Decentralized Autonomous Organizations—are increasingly growing in popularity in the global economy and becoming a mainstream investment vehicle due to the explosion of blockchain-based decentralized finance (DeFi) in recent years. The term “DAO” was coined by Vitaly Bukerin, the founder of the Ethereum network, in 2014. Although bitcoin could be viewed as a species of DAO, DAOs are generally defined as online communities that control a cryptocurrency wallet (a “treasury”) to pursue common goals. Although there are many DAOs in operation today, there are a number of legal pitfalls to consider if you are planning on joining or organizing a DAO.
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