Foundations of Decentralized Organizations

Decentralized Autonomous Organizations (DAOs) are blockchain-based entities that pool digital assets, automate governance through smart contracts, and enable collective decision-making—challenging traditional corporate structures. By attempting to avoid hierarchies and centralized control, DAOs promote transparency and global participation, while raising complex questions around liability, governance, and regulation in the digital age. This authoritative volume places DAOs within the framework of corporate law, offering a rigorous, interdisciplinary analysis of their evolution and potential. Written by a global team of scholars from the United States, United Kingdom, continental Europe, Australia, and Asia, the book combines cutting-edge blockchain research with legal expertise. It traces DAOs from their idealistic origins as code-based systems designed to replace traditional law, to practical adaptations in Swiss associations and bespoke legal forms in U.S. states such as Wyoming. Key chapters explore legal debates, historical parallels with early corporations, and governance innovations that expand participation while testing accountability. Case studies highlight DAOs' diversity and adaptive governance, while additional chapters address bankruptcy, international law, dispute resolution, collective investment, and DeFi regulation. Forward-looking perspectives consider DAOs' legal integration, limitations, and emerging intersections with AI. Ideal for academics, policymakers, investors, and professionals navigating Web3, Foundations of Decentralized Organizations: Blockchain and the Future of Corporate Law reveals DAOs' transformative potential to reshape corporate law and organizational design.