# kaal:claim:4529715-017

**Claim.** DAOs without effective governance structures and policies risk violating local laws and regulations, exposing themselves to legal and regulatory consequences.

**Type.** failure  **Support.** argued

**Source quote.**

> Furthermore, DAOs that do not have effective governance structures and policies may be at risk of violating local laws and regulations, which can lead to legal and regulatory consequences.

**From.** Wulf A. Kaal, Josh Bykowski, *Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis* (2023), Current state of DAOs, page 17

**Cite as.** Wulf A. Kaal, Josh Bykowski, Decentralized Autonomous Organizations (DAO) – A Market Meta Analysis (2023). SSRN: https://ssrn.com/abstract=4529715

**Verify.** sha256 of source PDF `2d71961e8c449afbeaf45ca4f53de8a575d45c77d6960b767d3d1d0874f296b5` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Bykowski%20-%202023%20-%20Decentralized%20Autonomous%20Organizations%20%28DAO%29%20%E2%80%93%20A%20Market%20Meta%20Analysis.pdf

**Failure mode.** regulatory-exposure-from-weak-governance  (family: governance-participation-collapse)

**Topics.** dao, governance-design, law-and-legal-systems, risk-and-incentives

**Keywords.** dao, governance-failure, legal-risk, regulation

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/5254152-005

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