@felice
DAOs operate outside traditional legal frameworks, raising questions about liability, taxation, and enforceability. Without recognition, DAOs risk regulatory intervention or disputes. Some jurisdictions experiment with DAO incorporation, but global consistency is lacking. Legal recognition challenges slow institutional adoption, as entities hesitate to transact with “legal voids.” For DAOs to scale, frameworks must evolve that grant them legal status while preserving decentralized governance. Until then, DAOs remain powerful in principle but limited in practice.
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