Nature of Decentralised Autonomous Organisations (DAOs)
What is a DAO?
A Decentralized Autonomous Organization (DAO) is a computer program, running on a peer-to-peer network, incorporating governance and decision-making rules. DAOs can be programmed to operate autonomously, without human involvement, or the code can provide for direct, real-time control of the DAO and funds controlled by it. The earliest DAOs are software controlled community organization experiments which seek to re-implement certain aspects of traditional corporate governance, replacing voluntary compliance with a corporation’s charter with actual compliance with pre-agreed computer code.
DAOs are not explicitly related in Singapore, but are treated according to its operations, such as constituting a Collective Investment Scheme if assets/properties are involved. Additionally, should a dispute arise, a court may infer a partnership structure based on the nature of the DAO.