The Law Commission has published a call for evidence, seeking information about how decentralised autonomous organisations (DAOs) should be characterised and how the laws of England and Wales might accommodate them in future. These organisations, that tend to rely on blockhain systems, smart contracts or other software based systems are inceasingly common in the context of crypto-token and decentralised finance markets, sometimes involve a recognised form of legal entity or something similar, but often have characteristics that are different from existing types of vehicle. The Law Commission has been tasked with investigating the forms DAOs take, how they can operate in England and Wales, and what law reforms may be necessary to address the risks they pose.
The paper analyses how the Law Commission understands that DAOs work, and looks at how this might be related to concepts already within the law, as well as how other jurisdictions have reacted to the challenge these organisations pose.
The call for evidence is open until 25 January 2023.