There is no certain law for DAO. It does not exist in a certain country. Sometimes the DAO has a connected legal entity of founders, which make possible to carry out business off-line. But the DAO itself is not incorporated legal entity. As it is digital non-domiciled structure. The geographical approach can’t be implemented on the ground of the connected legal entity.
The digital assets of the DAO are spread all over the world. Therefore the principle Lex loci rei sitae (law of the place where the property is situated) can’t be implemented to the DAO or may be implemented only on ground of tangible assets if any.
In case of tort or delict the place of events can be applied (the lex loci delicti commissi).
The applicable law can be determined on the ground of jurisdiction of the other contractual party, place where contract has been negotiate and made (the lex loci contractus) or place where the contract completed (lex loci solutionis) taking into account the third party participants (insurance, bank, exchange company) and input/output currency .
The place of promotion is another important factor. The legal representative of the DAO can be determined on the ground of marketing efforts. The person who named as the representative of the DAO or attracts new investor, or promotes the advantages of membership in DAO is a legal representative of the DAO. If the promoter has no legal rights to promote, the promoter can be sued for misrepresentation. In case the promoter has legal rights to represent the DAO, the promoter has to prove the right act as owner, creator, manager or representative.
Therefore, the most suitable approach is to determine the jurisdiction on the ground of a Creator / Congress leader or representative residence.
