The decentralized autonomous organization (DAO) is a relatively
novel structure gaining popularity in the blockchain community.
DAOs are community-led entities with no central leadership built on
a blockchain using smart contracts, and with no restriction on the
geographic location of its members, potentially resulting in an
international organization.
DAOs are seen as transparent and their lack of central
leadership is attractive to many. What DAO members often do not
realize, however, is that they may be unknowingly exposing
themselves to personal liability, simply by virtue of their
membership in a DAO. Unlike shareholders or members of more
traditional legal entities, DAO members do not enjoy protections
against personal liability for the DAO's actions unless there
is a state law that offers such protection.
