The 1inch decentralized autonomous organization (DAO) has approved the hiring of permanent legal counsel from Storm Partners, a Geneva-based Web3 solutions provider. The decision, which garnered overwhelming support with 96.45% approval in a single-choice vote that concluded on Jan. 9, aims to address the challenges arising from 1inch’s decentralized nature. The legal services offered by Storm Partners will encompass regulatory compliance checks, entity structuring, governance policy development, contractual support, intellectual property protection, and legal defense against external claims.
One of the main reasons cited for securing permanent legal counsel is the tendency of courts to apply traditional legal principles related to corporate liability and regulatory obligations to decentralized entities, as seen in recent cases in Europe and the United States. The 1 inch DAO acknowledges the existence of regulatory risks, liability concerns, contractual ambiguities, and enforcement of rights matters that may necessitate legal counsel in the future. The DAO emphasizes the need to confront and address these legal challenges for an organization with ambitions to shape the future of finance and empower individuals to control their wealth.
Storm Partners will not only provide legal support but will also play a role in internal regulation by drafting governance rules and policies in alignment with community decisions. The DAO will pay a retainer fee of 50,000 USD (USDC) to the law firm immediately. Nicola Massella, the director of the Legal and Compliance department at Storm Partners, clarifies that Storm’s engagement is meant to complement the community’s self-regulatory abilities, with the community retaining full control over the governance of 1inch DAO.
While the claim about Storm’s role in internal regulation is challenging to verify, the proactive decision to engage a legal team is aimed at managing legal challenges and safeguarding 1inch DAO and its members against unforeseen legal issues. Massella underscores the importance of addressing potential personal liability risks for DAO members. The partnership between 1inch and Storm is deemed a “historic precedent” for DAOs, marking the first instance where a DAO has directly hired a legal team.
Image by freepik
Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.