A DAO, or Decentralized Autonomous Organization, is an organizational structure that manages its decision-making processes through smart contracts operating on a blockchain. Instead of centralized leadership, token holders generally participate directly in governance by voting on proposals.

DAOs aim to promote transparency, efficiency, scalability and decentralized participation. However, technological decentralization does not automatically eliminate legal responsibility.

Turkish law does not currently provide a specific definition or legal framework for DAOs. A DAO does not automatically acquire legal personality merely because it operates through blockchain technology. Its legal status must therefore be assessed according to its governance structure, token characteristics and actual activities.

Depending on the circumstances, a DAO may raise legal issues concerning ordinary partnerships, contractual relationships, crypto assets, capital markets, taxation and the personal liability of its founders or participants.

Author: Dr. Gökhan Cindemir – Attorney, academic and author of a book examining the legal aspects of crypto assets and distributed ledger technologies.

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