In recent years, constructs that were traditionally the domain of governments have found analogues in the metaverse. Bitcoin and other cryptocurrencies are substitutes for government-backed fiat currency. Non-fungible tokens (NFTs) are government-approved substitutes for property titles. Smart contracts are substitutes for traditional contracts (which, while often entered into by private parties, are enforced by courts). The rise of decentralized autonomous organizations (DAOs), which are roughly analogous to government-sanctioned corporate entities, follows the same pattern. This post explores DAOs, including what they are and how they work, as well as recent developments at the state level to recognize them as legal corporate forms.

I. What is a DAO?

As with corporations, Dao are …