DAO is an autonomous decentralized system that is based on an explicit set of rules. These rules are generated by programmers using blockchain technology. The word DAO is an acronym for decentralized autonomous organization, and it was first introduced in 2016. With the help of this system, it is possible to eliminate the risk of human errors and generate a secured channel shielded from any interference or manipulation.
Despite the great potential of the project, this program has not gotten much attention. However, the current boom of blockchain technology and cryptocurrencies has allowed programmers to use DAO for important projects once again. The Australian lawmakers have been lobbying the senate to recognize DAOs as legal entities. The initiative aims to use the DAO network as a legal intermediately between different legal bodies.
As noted by the local media outlet Australian Financial Review, the regional Digital Law Association and recognized law firm Herbert Smith and Freehills started an initiative for legalizing DAOs. Both legal entities are lobbying in the Senate Committee to charter a bill that will pave the way to make the mission possible. If this bill is passed in the senate, it will allow the DAO governors to replace the board of directors with public voting communities online.
The lawyers, who support the initiative, claim that this step could transform Australia into a lucrative crypto trade zone like Singapore and Germany. With the rise of crypto-based enterprises, startups are moving to jurisdictions that offer friendly regulatory environments. These DAO limited projects would remove the need for the involvement of centralized authorities like banks and exchanges. On the other hand, limited liability status will protect them from the accountability of losses that are caused by individual community members.
Shapeshift is a crypto exchange platform based in Switzerland. It has been operating as a centralized market since 2014. Recently, the company has decided to dissolve its corporate structure to make way for a new open-sourced platform.
Erick Voorhees, CEO and founder of Shapeshift, claims that this new transformation will allow the company to take a step forward into the future of crypto, which is DeFi. The new concept has been inspired by the widespread popularity of decentralized platforms in the crypto community. The DeFi infrastructure will allow the country to operate independently of banks, geopolitical borders, or any centralized financial bodies.