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DAOs Challenge Traditional Corporate Structures Amid Legal Uncertainty

DAOs Challenge Traditional Corporate Structures Amid Legal Uncertainty

Author:

Global Cryptocurrency

Published:

2025-10-19 21:09:02

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BTCCSquare news:

Decentralized Autonomous Organizations (DAOs) are reshaping corporate governance, yet they operate in a legal gray area. With over $20 billion in on-chain treasuries, these entities lack formal recognition—unable to sign contracts, pay taxes, or shield members from liability. Their promise of decentralized control often masks concentrated power among a few dominant participants.

Existing legal wrappers like LLCs or foundations introduce compliance hurdles, jurisdictional complexity, and added costs, disadvantaging smaller teams. The solution may lie in a new framework: defining roles like "digital fiduciaries" and creating a global "DAO passport" to ensure accountability and cross-border recognition.

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