1inch DAO Votes to Hire Permanent Legal Counsel for Decentralized Nature Challenges

cryptonews.com:

The decentralized autonomous organization (DAO) of 1inch, a decentralized exchange (DEX) aggregator, has voted to enlist permanent legal counsel from Geneva-based Web3 solutions provider Storm Partners. The decision was made to help 1inch address the legal challenges posed by its decentralized nature.

On January 9, the 1inch DAO concluded a single-choice vote to acquire “comprehensive legal support” from Storm, which received overwhelming support from a majority of 96.45%. 1inch DAO, like other decentralized organizations, faces intricate legal challenges requiring legal assistance to navigate regulatory risks, protect stakeholder interests, and maintain operational resilience.

The legal services that Storm Partners will provide include cross-jurisdiction regulatory compliance, contractual agreements, the DAO governance framework, members’ liability, legal personality, asset protection, intellectual property, enforcement of rights, and defense against external claims. The engagement aims to provide comprehensive legal support to 1inch DAO, addressing various operational challenges and ensuring compliance with legal requirements.

The decision to hire permanent legal counsel stems from the increasing tendency of courts to apply traditional legal principles regarding corporate liability and regulatory obligations to decentralized entities, as observed in recent cases in Europe and the United States. Recognizing the legal challenges faced by decentralized organizations, 1inch DAO aims to solve challenges like regulatory risks, liability concerns, contractual ambiguities, lack of legal recognition, and challenges in enforcing rights.