Web Trader MT5
A Decentralized Autonomous Organization is an entity that operates on a blockchain through smart contracts as opposed to a traditional management structure and legal system.
The concept is that the rules governing the organization are hard-coded into software: decisions are made through token-holder votes, funds are managed by the protocol rather than by any individual, and no single individual or company is technically in control.
In principle, it eliminates the need to trust a central authority. Practically, DAOs differ in size by an order of magnitude. Some are actually decentralized and functional, others are decentralized in name only, and an order of magnitude larger are those governed by token voting.
In most jurisdictions, the legal status of DAOs remains unresolved, posing real problems of liability and enforceability.
Example: Cryptocurrency investors come together in a DAO to collect capital and make a joint bid on assets. Governance tokens are minted, proposals are made on-chain, and members vote on the best way to deploy the treasury.
When a vulnerability in a smart contract is later exploited, and the money drained, it turns out that the question of who is legally responsible and who, should a vulnerability be exploited, can be sued, turns out to have no easy answer.
