Community reaction
The ruling has triggered unease within the blockchain sector as it sets a precedent that could impact other DAOs and their contributors.
Miles Jennings, General Counsel at venture capital firm a16z Crypto, called it a significant challenge for decentralized governance. Jennings warned that even minimal participation in a DAO could lead to legal liability for other members’ actions.
He suggested this might push the industry toward adopting the Decentralized Unincorporated Non-profit Association Act (DUNA) as a protective measure. DUNA is a bill passed in Wyoming that recognizes blockchain-based decentralized autonomous organizations (DAOs) as legal entities.