1/ Hugely important point (and even more valuable example) surfaced by @lex_node below of a concern I also have been raising for some time. https://twitter.com/lex_node/status/1326377071988396038

2/ Community governance of #DAOs (essential to avoid the DAO being treated as an unincorporated business organization that issued unregistered securities) only works when you have active and *direct* community engagement.

3/ The combination of an economic interest in the activity of the DAO realized through the ownership of a fungible digital asset and the delegation of decision making to surrogates makes it almost impossible to argue that a more standard business organization doesn’t exist.

4/ This is fine in theory but, as @lex_node notes, this arrangement brings with it years and years of external rules (we call ‘em “laws and regulations” in these parts) that for good reason constrain the way these organizations can operate.

5/ And if you are relying on the ole “They’ll never catch me” out, well, I hope you have a good white collar (or criminal!) defense lawyer on speed dial - these things generally don’t work out like you expect.

6/ My bottom line: There is a great future for #DAOs but make sure you bring a community (and governance structure) that ensures direct and fair involvement of all participants.

7/ Also interesting are #LAOs that bring a legal “wrapper” and automation to a more traditional business organizations. @awrigh01 and @OpenLawOfficial have been doing great work there, as have @lex_node and @Meta_Cartel, @r_ross_campbell and @lex_DAO and many others.

8/ For lawyers unfamiliar with the space, the water is warm and the time to jump in is now. For developers who “hate” lawyers - fine! Then learn about this stuff yourself. The only thing that doesn’t work is trying to roll-your-own governance w/o either knowledge or a Sherpa.