1 Legal and enforcement framework
1.1 What general regulatory regimes and issues should blockchain developers consider when building the governance framework for the operation of blockchain/distributed ledger technology protocols?
The blockchain economy allows for a new form of organisational design though decentralised autonomous organisations (DAOs), whose governance rules are specified in the blockchain. However, the recent experiences of some DAOs have highlighted that since they are run through smart contracts, if there is a bug or error in the smart contract code, the potential remedial effects could be problematic due to the autonomous enforcement mechanisms in place.
For this reason, DAO governance mechanisms should be examined and design-oriented research should be conducted to identify solutions to the risks of smart contracts and propose risk management mechanisms to mitigate such risks.
