NFTs, DAOs AND SMART CONTRACTS: WHERE IS THE DECENTRALISATION?

Abstract

DAOs, decentralised autonomous organisations, you have the power, right? Well, like most other matters now-a-days, it depends. Oftentimes, the relationship between NFTs and DAOs is intertwined as a DAO may be set up with the purpose of creating NFTs or else, one may buy an NFT to become a DAO member. Both DAOs and NFTs make use of smart contracts on a blockchain. Thepurpose of this paper is to answer the following questions:How decentralised is a DAO? What is the role of NFTs within a DAO?How can NFTs enhance the workings of a truly decentralised autonomous organisation? The author believes that decentralisation should stop being used as a hype word in the blockchain sphere and discussesaboutcertain problems regardingcentralised and decentralised points in a DAO, whether theyrealised or not. Both the Maltese Innovative Technology Arrangement and Services Act and the Wyoming Decentralized Autonomous Organizations Supplement will serve as focus as theselaws directly regulate DAOs and in turn serve as a means to protect the member and the client of the DAO, and their NFTs.