DAOs and the Future of Corporate Law: Oxford University Press Sets the Standard for 2026
The question of what a DAO is — legally speaking — is one of the most consequential open questions in contemporary corporate law. Billions of dollars in digital assets are governed by entities that exist, at least in part, outside the established categories of corporate law. No board of directors. No registered jurisdiction. No traditional fiduciary relationships. Governance by code and token-weighted voting.
Foundations of Decentralized Organizations: Blockchain and the Future of Corporate Law (Oxford University Press, January 2026), edited by Kevin Werbach (Wharton), Eva Micheler (LSE), and Bianca Kremer, is the academic and practitioner community's most authoritative response to this challenge.
Four Parts, 15 Chapters, One Essential Question
The book is structured around a single essential question: what does corporate law make of entities that were designed, in many cases, to replace it?
Part I addresses DAO legal forms worldwide — from Wyoming's DAO LLC statute to Swiss associations to the Marshall Islands framework — and asks whether bespoke legal forms are even needed, or whether existing corporate structures are sufficient. Chapter 3 by Michael Schillig places DAOs in historical context, tracing parallels with the early history of the corporation itself.
Part II addresses governance — arguably the most practically urgent set of questions for anyone advising DAO participants. Jill E. Fisch examines DAOs and corporate governance. Chapters on fiduciary duties, the theory of the firm, and adaptive governance round out a section that provides the conceptual framework practitioners need.
Part III addresses legal considerations in the most direct sense: DAOs in financial distress; choice of court in DAO disputes; practical dispute resolution; collective investment via DAOs; and DeFi regulation. The chapter by Iris H-Y Chiu on regulating decentralised finance is essential reading for anyone working in the financial regulation of blockchain-based systems.
Part IV looks forward — to AI intersections, to the ultimate contribution DAOs make to organisational design, and to the trajectory of digital organization law.
Why Law Libraries Must Acquire This
DAO law is no longer theoretical. Regulators, courts, and legislatures in multiple jurisdictions are actively addressing DAO governance. Law libraries serving technology law practitioners, corporate law academics, financial regulators, and investment professionals cannot afford to treat this as a niche topic. This Oxford University Press volume — with its global authorship, rigorous interdisciplinary approach, and authoritative publisher — is the standard reference for the field.
Q&A
What does "decentralized" mean in the context of a DAO?
Decentralization refers to the absence of a central authority controlling the organization. Decisions are made by token holders through smart-contract-encoded governance mechanisms, rather than by a board of directors or management. In practice, most DAOs exhibit some degree of centralization in their early stages.
Is a DAO a legal person?
Generally, no — unless it has adopted one of the specific legal forms now available in certain jurisdictions (Wyoming, Switzerland, Marshall Islands). Without legal personality, DAOs cannot hold property, enter contracts, or sue and be sued in their own name. This creates significant liability exposure for participants.
What is DeFi and how does it relate to DAOs?
Decentralized Finance (DeFi) refers to financial services built on blockchain infrastructure — lending, borrowing, trading, and derivatives — all governed by smart contracts rather than financial institutions. Many DeFi protocols are governed by DAOs. Chapter 12 by Iris H-Y Chiu addresses how financial regulation applies to DeFi and DAO governance.
Can AI govern a DAO?
Chapter 15 by Kevin Werbach — "Out of Control: DAOs, AI and the Question of Autonomy" — addresses the emerging intersection of artificial intelligence and DAO governance, examining what true autonomy would mean for organizational law and whether existing legal frameworks can accommodate it.
What is the legal status of smart contracts?
Smart contracts are self-executing code that implements agreed terms automatically when specified conditions are met. Their legal status as contracts — and the enforceability of their outcomes — varies significantly by jurisdiction. The book addresses this question across multiple legal systems.