More than Just the Ooki DAO: Lessons for Web3 Companies About Control After bZx

  • 📰 CoinDesk
  • ⏱ Reading Time:
  • 76 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 34%
  • Publisher: 63%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

'The area where we repeatedly see regulators blur the line between technical reality and their regulatory objectives is around control of a decentralized protocol.' Opinion.

Daniel M. Barabander is an associate in Cravath, Swaine & Moore’s corporate department.

David J. Kappos is a partner in Cravath, Swaine & Moore’s corporate department and co-chair of the firm’s intellectual property practice. Evan Mehran Norris is a partner in Cravath, Swaine & Moore’s litigation department and a member of the firm’s investigations and regulatory enforcement practice. Daniel M. Barabander is an associate in Cravath, Swaine & Moore’s corporate department.

The bZx enforcement action demonstrates how at least one key regulator is thinking about control of Web3 protocols in order to hold operators accountable: by examining both technical and business control to draw the line between identifiable persons and autonomously run protocols.Technical control refers to technical mechanisms protocol developers use to control their protocol on the smart contract level, often by defining “admin-only” functions that can be called solely by specific parties.

In response to the breach, the DAO exerted its control over treasury funds, by “vot[ing] to utilize funds from the bZx DAO Treasury to compensate certain bZx DAO members and other users of the bZx Protocol who lost funds in connection with” the incident. The commission focuses most clearly on the fact that the respondents “designed, deployed, marketed and made solicitations” concerning the bZx protocol.

Third, active participation in a DAO is seen as a form of business control. The CFTC finds in the settlement order that the co-founders were active on Ooki DAO governance matters.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 291. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

'Cool', indeed.

I wish someone showedd me thisss earlier!!!

They don’t want youu to know this!

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tech talent migrates to Web3 as large companies face layoffsThe Web2 workforce takes an interest in joining Web3 firms as tech giants face layoffs, but will Web3 companies reign supreme given market conditions and hiring strategies? iEx_ec is hiring 👇. developers hiring $RLC BTCOlN Benoist181 Msheykholeslami StockmoneyL ohiobitcoin CollectorNft markymark PapaClarkyBTC rjames_BTC Research now! 👍 ⬇️⬇️⬇️ 🚀Thankss a millon,
Source: Cointelegraph - 🏆 562. / 51 Read more »

DAO Philosophy and Business: My Experience With the Joystream DAO | HackerNoonIn taoism the balance is summarised in Yin and Yang principles. But what about the DAO, a well-balanced organization which is like a self-evolving organism? - dao blockchain
Source: hackernoon - 🏆 532. / 51 Read more »