Australian digital financial sector seeks to legalize DAO

Australian digital financial sector seeks to legalize DAO

Experts and advocates focusing on decentralized finance (DFI) are launching an initiative to create a new type of legal entity representing autonomous decentralized organizations (DAOs) in Australia.

The country’s Digital Law Association and global law firm Herbert Smith Freehills are pushing for an Australian Senate committee to formally recognize a new decentralized model of corporate governance. These new DAO models will replace a board of directors with an internet community, informed Australian Financial Review on Thursday (15).

The initiative specifically aims to allow governors of the “DAO Limited” project to contract other legal entities through DeFi tools, applying blockchain technology to remove traditional intermediaries such as banks and exchanges. The limited liability status would also prevent Australian members of the DAO from being held liable for damages caused by decisions made by a member of the community.

According to lawyers, legalizing DAOs in Australia could make the country more attractive to global digital asset businesses, as groups of local DeFi entrepreneurs reportedly move to jurisdictions such as Singapore and Germany.

A DAO is a decentralized organization with some set of rules that is coded like a computer program and is usually based on blockchain technology. most important first attempt The “DAO” was a machine-driven enterprise organization launched in 2016 to create The DAO.

The news comes as some cryptocurrency exchanges are moving to a decentralized structure. Yesterday, the ShapeShift exchange announced plans to open the source code of its platform and disband its entire corporate structure to emphasize its commitment to DeFi. “Inspired by the wider DeFi community, we are now helping to build a new model of economic coordination for the 21st century. No corporate entities, no banks, and no borders. The tools are ready,” said ShapeShift Founder and CEO Eric Voorhees said.

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About the author: Cory Weinberg

"Student. Subtly charming organizer. Certified music advocate. Writer. Lifelong troublemaker. Twitter lover."

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