[블록미디어 박수용 에디터] A California court ruled that Lido Decentralized Autonomous Organization (DAO) can be treated as a general partnership. Decryptreported on the 19th (local time).
LIDO is a liquidity staking protocol that allows you to liquidate assets while staking tokens. A general partnership is a form of company that assumes joint liability, and its members have direct, joint, and unlimited liability to creditors.
Decrypt, a media outlet specializing in virtual assets (cryptocurrency), said, “The federal court rejected Lido’s argument that DAO is not a corporation,” and added, “It sets a precedent for how profit-oriented DAO will be viewed legally.” Media specialized in virtual assets Cointelegraphanalyzed that this ruling “means that DAO participants can share responsibility for the actions of other members.”
“The court ruled that DAO operations are managed by identifiable participants, so responsibility cannot be avoided through a decentralized structure,” Decrypt said. Partners suspected of being actively involved in Lido Dao’s governance and operation include Paradigm Operations, Andreessen Horowitz (a16z), and Dragonfly Digital Management.
Cointelegraph explained, “This lawsuit was filed by Andrew Samuels, who purchased tokens (LDO) issued by Lido Dao, to recover his losses.” Samuels argued that LDO was an unregistered security and not registered with the U.S. Securities and Exchange Commission (SEC) and therefore liable for his losses.
Today, a California judge dealt a huge blow to decentralized governance.
Under the ruling, any DAO participation (even posting in a forum) could be sufficient to hold DAO members liable for the actions of other members under general partnership laws.
It’s time to DUNA. pic.twitter.com/aKNBY7pfc9
— miles jennings (@milesjennings) November 19, 2024
“This ruling has dealt a major blow to decentralized governance,” said Miles Jennings, general counsel for a16z Crypto, in an “He pointed out.
Breaking news through Block Media Telegram (click)
Good article to read together
Decentralized Finance TVL Surpasses $100 Billion in 2 Years – Lido, EigenLayer, Aave
What are the potential consequences of DAOs being classified as general partnerships for their members?
Guest 1: Alex Smith, Legal Expert at Blockchain Association
Guest 2: Sarah Johnson, Crypto Analyst at Morgan Stanley
Website Editor:
Thank you both for joining us today. Our topic of discussion is the recent California court ruling regarding Lido Decentralized Autonomous Organization (DAO) and its classification as a general partnership. Let’s start with some basics for our audience. Alex, as a legal expert in the blockchain space, can you explain what a general partnership is and what are the ramifications of a DAO being classified as such?
Guest 1: Sure, a general partnership is a form of company where the partners have joint and unlimited liability for the debts and obligations of the company. This means that each partner can be held liable for the actions of the other partners, regardless of their level of involvement or knowledge. The California court’s ruling confirms that DAOs can be treated as general partnerships, which means that members can be held responsible for the actions of other members.
Website Editor: That’s interesting. Sarah, as a crypto analyst, how do you see this ruling impacting the DAO space? Do you think this will deter people from participating in DAOs or do you think it’s just a minor setback?
Guest 2: Well, it’s definitely a significant development, and it’s going to raise some questions about the legal status of DAOs and their members. However, I don’t think it will completely deter people from participating in DAOs, as the decentralized system is still very appealing to many. Instead, this ruling might force DAOs to be more transparent and cautious in their operations, ensuring that they are compliant with existing securities laws. It could also lead to more clarity around the legal status of DAOs in general.
Website Editor: Do you see this ruling setting a precedent for future cases involving DAOs and their members? How might it change the way DAOs operate?
Guest 2: I believe this ruling will have a significant impact on future cases involving DAOs and their members. The court ruling suggests that DAO participants cannot avoid responsibility for the actions of other members, even if they are decentral
