# Dao limitations

`kaal:entity:dao-limitations`

**Status.** derived

This node is assembled mechanically from the 4 claims that carry the concept tag `dao-limitations`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

4 claims across 1 works, 2020 to 2020.

**2020**

- [3652481-009](https://wulfkaal.github.io/claims/3652481-009) [failure/evidenced] *(failure mode)* -- The immutability of blockchain ledgers is itself a vulnerability, because once a DAO is in operation its essential construction is very difficult to alter should a bug in the code appear.
  > The immutable nature of blockchain ledgers could also make the DAO vulnerable to attacks because it is so difficult to alter the essential construction of the DAO once the system is in operation, should a bug in the code arise.
  Wulf A. Kaal, Decentralized Autonomous Organizations – Internal Governance and External Legal Design (2020). SSRN: https://ssrn.com/abstract=3652481
- [3652481-012](https://wulfkaal.github.io/claims/3652481-012) [failure/argued] *(failure mode)* -- Regulatory uncertainty is holding back both the development of DAOs and the optimization potential DAOs offer for digital assets.
  > Regulatory uncertainty is holding back the development of DAOs and the optimization potential of DAOs for digital assets.
  Wulf A. Kaal, Decentralized Autonomous Organizations – Internal Governance and External Legal Design (2020). SSRN: https://ssrn.com/abstract=3652481
- [3652481-017](https://wulfkaal.github.io/claims/3652481-017) [failure/evidenced] *(failure mode)* -- Under current securities laws, DAOs governed solely by smart contracts are restricted in their ability to pool assets and generate profit, because those laws limit their ability to fund ecosystem development and deploy capital efficiently.
  > Under current laws, DAOs solely governed by smart contracts are restricted in their ability to pool assets and generate profit because securities laws limit their ability to fund ecosystem development and deploy capital efficiently.
  Wulf A. Kaal, Decentralized Autonomous Organizations – Internal Governance and External Legal Design (2020). SSRN: https://ssrn.com/abstract=3652481
- [3652481-020](https://wulfkaal.github.io/claims/3652481-020) [failure/asserted] *(failure mode)* -- DAO designs at the beginning of the 2020s did not effectively master the duality of incentives that a workable DAO governance design requires.
  > DAO designs at the beginning of the 2020s did not effectively master this duality.
  Wulf A. Kaal, Decentralized Autonomous Organizations – Internal Governance and External Legal Design (2020). SSRN: https://ssrn.com/abstract=3652481

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/dao-limitations.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.