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Solving the Riddle of the DAO with Colorado’s Cooperative Laws

Self-governing entities like Decentralized Autonomous Organizations (DAOs) are unique and largely incompatible with traditional U.S. legal entities. Absent the adoption of a new legal entity structure that serves the novel needs of DAOs, we discuss why we believe, at present, the Limited Cooperative Association (LCA) provides the most ideologically aligned legal framework for DAOs. The LCA integrates cooperative principles and values that are similar to core DAO principles and provides a legal framework for DAOs seeking to wrap a portion or all of their related activities in a legal structure.