DAO


(DECENTRALIZED AUTONOMOUS ORGANIZATION)

A DAO is an organizational model that operates through smart contracts and enables governance without the need for a central authority. DAOs are blockchain-based, and decisions are made through community voting.


Let's Get to Know DAO!
Decentralized
Decisions are made with the participation of all members, not by a single person or entity.
Autonomous
Rules are coded into smart contracts, ensuring that processes execute automatically.
Transparent
All transactions and decisions are visible on the blockchain.
Token-Based
DAO members vote in governance by holding specific tokens.
Why Is It an Inevitable Transformation for Companies?
Learn the difference from traditional companies!
DAO

1.⁠ ⁠Governance and Decision-Making Mechanism

✅ Decentralized – All decisions are made through community voting.

✅ Automated – Decisions are executed via smart contracts.

✅ Transparent – All transactions are publicly recorded on the blockchain.


2.⁠ ⁠Ownership and Shareholders

✅ DAO tokens replace traditional company shares.

✅ Every token holder has voting rights.

✅ DAO shares can be transferred and programmed.


3.⁠ ⁠Legal Structure and Liability

⚠️ DAOs usually do not have legal entity status.

⚠️ DAO members may have unlimited legal liability.

⚠️ DAOs are often registered in jurisdictions offering special legal statuses, such as Wyoming (USA) and Zug (Switzerland).


4.⁠ ⁠Employees and Organizational Structure

✅ Participants are independent and take on roles through voting.

✅ There is no central manager; tasks are distributed via smart contracts.

✅ Workers usually contribute to specific projects and receive crypto payments.


5.⁠ ⁠Transparency and Auditing

✅ All decisions and financial transactions are visible to everyone on the blockchain.

✅ More resistant to manipulation.

Traditional Companies

1.⁠ ⁠Governance and Decision-Making Mechanism

❌ Centralized – Decisions are made by a board of directors and a CEO.

❌ Human-dependent – All decisions are enforced by written rules and human managers.

❌ Not transparent – Internal company decisions are usually not public.


2.⁠ ⁠Ownership and Shareholders

❌ Shareholders are specific and legally registered.

❌ Shares change hands through legal processes.

❌ Voting rights usually grant more power to major shareholders.


3.⁠ ⁠Legal Structure and Liability

✅ Has a legal entity under the Turkish Commercial Code (TCC) and similar laws.

✅ Shareholders have limited liability.

✅ The company can enter into contracts and take legal actions.


4.⁠ ⁠Employees and Organizational Structure

❌ Hierarchy exists between management and employees.

❌ Salaries are fixed, and long-term employment contracts are made.

❌ The employer has direct control over employees.




5.⁠ ⁠Transparency and Auditing

❌ Financial transactions and decisions are usually stored in internal and private documents.

❌ Audits are conducted by government agencies or independent auditors.

Legal Procedures Required to Establish a DAO
There are 3 basic legal options for establishing a DAO
1
Establishing a legal entity for a DAO in a country that officially recognizes it.
2
⁠Implementing the DAO model within existing corporate structures.
3
Operating a fully decentralized DAO without legal entity status.
What Are We Doing Under "DAO Modeling"?
"DAO Modeling" refers to the process of structuring Decentralized Autonomous Organizations (DAOs) within traditional companies and establishing their legal framework.
End-to-End Development of a DAO Project
It encompasses the entire process, including concept design, building the technical infrastructure, writing smart contracts, determining governance mechanisms, creating a legal framework, securing funding, building a community, and the launch process.
Determining Legal Status
Deciding whether the DAO will have a legal entity and defining the structure under which it will operate in a specific country (e.g., foundation, association, limited company, etc.).
Creating Contracts and Governance Mechanisms
Establishing the governance model of the DAO, membership conditions, rights of token holders, voting processes, distribution mechanisms, and dispute resolution methods within the legal framework.
Compliance and Regulatory Analysis
Analyzing whether the DAO complies with legal regulations in countries where it operates or plans to operate, including finance, tax, corporate law, anti-money laundering (AML), and data protection laws.
Legal Validity of Smart Contracts
Evaluating the legal binding nature of the smart contracts that govern decision-making and asset management in the DAO, and minimizing legal risks.
Liability and Risk Management
Determining the legal responsibilities of DAO members and managers (e.g., multisig wallet holders) and providing legal solutions for managing risks.

Hybrid DAO


Implementation Steps and Roadmap

First 3 Months
First 3 Months
Pilot Phase and Core Modeling
  • The legal and technical framework of the DAO is clarified with the management team.
  • The token economy model and incentive mechanisms are defined.
  • Whitepaper and technical documentation are prepared.
  • The first draft of smart contracts is created.
  • The DAO’s decision-making process and engagement model are tested.
3-6 Months
3-6 Months
Technical Development and User Integration
  • Smart contracts are coded and tested.
  • An initial regulatory assessment is conducted to analyze legal risks.
  • Insurance and security mechanisms are developed.
  • DAO members begin voting on certain topics.
  • Exclusive content, rewards, and incentive systems are launched.
  • The first NFT collection and Web3 community event is organized.
6-9 Months
6-9 Months
Security, Regulatory Compliance, and Integration
  • Smart contracts undergo independent security audits.
  • Insurance and legal protection mechanisms for the DAO are established.
  • User identity verification (KYC/AML) processes are developed.
  • Full compliance with regulatory requirements is ensured.
  • The DAO is integrated with global communities and investors.
9-12 Months
9-12 Months
Global Expansion and Revenue Models
  • The DAO expands through international partnerships and corporate integrations.
  • DAO-based commercial models are developed to enhance revenue streams.
  • Research is conducted on centralized and decentralized finance (CeFi - DeFi) solutions.
  • The DAO’s performance is evaluated, and a future roadmap is set.
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Crypto Law Istanbul - 2025
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