Are DAOs Strong Enough to Survive the Regulators? - Ep. 479

How can decentralized autonomous organizations (DAOs) be more resilient? Gabriel Shapiro, general counsel at Delphi Labs, and Fatemeh Fannizadeh, lawyer and researcher at Geneva-legal.ch, 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?

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!

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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 at Geneva-legal.ch
• 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

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