The VC firms sued in a California case were active in DAO management, much like general partners, said the court. They could face hefty lawsuits.
Legal structure probably isn’t the first thing that comes to mind when thinking about decentralized autonomous organizations (DAOs), but it will likely draw more attention in the coming years.
A structure that protects members against killer lawsuits by offering “limited liability” will most likely be considered essential.
Consider that in 2022, venture capital powerhouse Andreessen Horowitz invested $70 million in (LDO) tokens issued by Lido DAO.
