DAOs under Portuguese Law: current framework and perspectives for future regulation

Abstract

Decentralized autonomous organizations (DAOs) can be perceived as a novel way for people to organize themselves and carry out collective activities, based on the blockchain and with a degree of decentralization that traditional forms of organization such as companies, associations, or foundations do not provide. With some exceptions, it is rare to find jurisdictions with bespoke regimes for DAOs. However, this vacuum does not mean DAOs escape the law – in most jurisdictions, DAOs will be considered partnerships, with common themes of informality, lack of legal personality, and unlimited liability of members. Portuguese law is no exception, and this chapter provides a review of how Portuguese civil law partnership (sociedade civil) law would apply to DAOs and to what degree it is compatible with their purposes. However, as will be pointed out, the treatment of DAOs as partnerships is unsustainable, and any future tailor-made regulation must keep some essential issues in mind.