XDAO, a protocol built on The Open Network (TON), has made significant strides in the realm of decentralized autonomous organizations (DAOs) by granting legal status to over 367,000 DAOs. This remarkable initiative focuses on automating the legal recognition process, streamlining the creation of DAOs, and effectively enabling them to function within a legitimate legal framework.
In a recent announcement, XDAO emphasized its innovative approach that not only simplifies DAO creation but also sets a precedent for standardizing ‘sub-entities’ under its legal umbrella. As explained by an XDAO representative, these sub-entities exist in relation to one another and to external entities that acknowledge and agree to the articles outlined in the XDAO Labs’ Constitution.
The protocol has designated Singapore as the primary jurisdiction for conflict resolution, given its incorporation as XDAO Labs is founded there. This choice provides a solid legal foundation for DAOs to address disputes when they arise.
Legally-Binding Document Signing via Telegram Bots
One of the standout features of the XDAO protocol is its capability to facilitate the signing of legally binding documents through Web3 wallets, utilizing a Telegram bot for transaction archiving. While the XDAO representative noted the system’s efficacy across most jurisdictions, it is important to highlight certain limitations. Matters concerning real estate, securities, and other contracts requiring a specific formation procedure fall outside the ambit of this framework.
“When making agreements through a Telegram bot, it is crucial to meticulously record all details and specifics, as this significantly aids in potential dispute resolution,” stated the XDAO representative.
Additionally, the Telegram bot offers functionalities for conducting basic Know Your Customer (KYC) procedures, further enhancing the security and practicality of dealings within the DAO ecosystem.
Smart Contract Compliance and Arbitration Scenarios
When discussing how XDAO plans to implement smart contract compliance in potential arbitration scenarios, the spokesperson elaborated on their models. These allow parties to form valid arbitration agreements through messenger or e-signature methods like Docusign and Ethsign, ensuring that all involved personalities are firmly established. The intention to resolve disputes must be clearly articulated to facilitate smooth arbitration processes.
“Arbitration is a recognized method of dispute resolution that is well-established under international conventions. Although the conventions lack specificity regarding the formation of arbitration agreements apart from the requirement for written format, they provide valuable guidance,” the spokesperson explained.
Furthermore, if a payment is necessary, an arbitrator may be incorporated into the DAO with a key vote, thus granting them the authority to utilize their digital signature to facilitate transactions should a consensus not be reached.
In conclusion, the groundbreaking initiatives by XDAO represent a profound shift towards legitimizing DAOs within the legal framework, paving the way for a more structured and recognized landscape for decentralized organizations.
