A law and economics look to Decentralized Autonomous Organization, blockchain and business organisation
DOI:
https://doi.org/10.32091/RIID0206Keywords:
DAOs, Decentralisation, Business organization, Corporate governance, TokensAbstract
Decentralized Autonomous Organizations (DAOs) are economic organizations based on Distributed Ledger Technology (DLT) that make use of software to automate decision-making and administrative processes, thus facilitating the participation of stakeholders in the business organization. This essay investigates from an economic analysis of law viewpoint the functioning of DAOs and analyses in comparative terms the legal disciplines that have started to develop. This analysis has a twofold objective: first, to examine whether and to what extent blockchain technology can address some of the governance problems that typically arise in organizations with a broad participatory base; second, to contribute to the academic reflection on legally recognized forms of entrepreneurial organization by assessing pros and cons related to the automation of management and decision-making made it possible by blockchain applications.
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