Are DAOs Strong Enough to Survive the Regulators?

How can decentralized autonomous organizations (DAOs) be more resilient? Gabriel Shapiro, general counsel at Delphi Labs, and Fatemeh Fannizadeh, lawyer and researcher, survey the landscape and offer their insights on what will fuel the next wave of DAO innovation. Are new rules from U.S. states like Wyoming and Utah a boon for DAO creation? Or will the proceedings against Ooki DAO by U.S. regulators cast a pall on this emerging segment of the Web3 world?

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform.

Show highlights:

• how Gabriel and Fatemeh determine whether something is actually a DAO
• the pressing legal issues around DAO formation
• where the liabilities lie in these types of organizations
• Delphi Labs’ new “borg” concept and the problems it aims to solve
• what jurisdictions are more appropriate for different DAOs
• the nuances of Wyoming’s DAO LLC law
• Utah’s Introduction of LLDs – limited liability DAOs – and why it is innovative
• why the CFTC filed a lawsuit against Ooki DAO
• whether governance token holders are liable for the DAO’s actions
• how the Ooki lawsuit will impact how DAOs structure their activities in the future
• what happened in the MakerDAO case and its implications
• why Fatemeh and Gabriel disagree on whether the Mango DAO’s agreement to not pursue actions against Avi Eisenberg was legally binding

Thank you to our sponsors!

• Crypto.com
• Halborn

Guests:

• Gabriel Shapiro, general counsel at Delphi Labs
  • Previous appearances on Unchained:
    • What Does Mango Markets Exploiter Avi Eisenberg’s Arrest in Puerto Rico Mean for DeFi? 
• Fatemeh Fannizadeh, lawyer and researcher
  • Lawmakers In New Hampshire And Utah Recognize DAOs As Legal Persons

Links

MakerDAO:

• CoinDesk: Crypto Investors’ $28M ‘Black Thursday’ Lawsuit Against DeFi Giant Maker Dismissed by US Judge

Mango Markets:

• CoinDesk: Legal Expert Says Mango Markets Exploit Case Is Wake-Up Call for DAOs

• Avi Eisenberg Detained Unlike SBF As Mango Labs Is Denied Injunction But TRO to March 15

• Unchained: 

• • The Mango Markets Attacker on Whether His ‘Trade’ Was Ethical or Not
  • CFTC Charges Mango Markets Exploiter With Market Manipulation
  • Mango Markets Exploiter Arrested on Market Manipulation Charges

Tornado Cash

• Unchained:

• • The Chopping Block: Did OFAC Overstep by Sanctioning Tornado Cash?
  • Given the Sanctions on Tornado Cash, Is Ethereum Censorship Resistant?
  • Tornado Cash Sanctioned. Did the Government Overstep Its Bounds?

Ooki DAO:

• Unchained: Why the Ooki DAO Case Could Hurt Participation in DAOs

• CoinDesk: Interpreting the CFTC’s Lawsuit Against Ooki DAO

Wyoming law

• Legal Nodes: Wyoming LLC as a DAO Legal Wrapper: What You Need to Know

Utah

• The National Law Review: Utah Passes Innovative DAO Legislation