Decentralized Autonomous Organizations (DAO) have already started finding their applications in traditional organizational frameworks such as businesses and governments. Researchers are now imploring the possibility of DAO involving the legal industry.
DAO, being transparent and efficient, might provide the demanded solutions to bureaucracy and corruption.
A decentralized autonomous organization is a community of people with a like agenda and functioning together towards one goal. These people organize into a company and work without the need for a traditional hierarchal structure, in other words, centralized leadership.
Most DAOs are online, and team meetings in real life are rare. DAO’S power in Blockchain technology makes all transactions immutable and transparent.
According to publications, in law, members will be able to buy tokens of DAO and take part in voting or for different governance activities. DAO tokens can incentivize certain behaviors. A DAO might prize users with tokens when a task beneficial to the DAO gets achieved.
Voted rules by the community are also put in the DAO’s smart contracts. Now, voting is the only way possible to make new changes. This makes the DAO suitable.
If you consider the reports, DAOs have already started making their place in the territory of law, but their administrative and structural adaption is yet to take place.
Several proposals to solve procedural problems are being seen by the legal industry in the past couple of years. Diligen is a platform that uses the technology of Machine Learning (ML) to analyze contracts. Another platform Luminance incorporates Artificial Intelligence(AI) for legal purposes such as data protection, contract reviews, lease reviews, and more.
The platforms have been helpful and have improved legal workflows among firms adopting them. But they have not been able to put a transformative impact on the industry as a whole. While the platforms do make the work easy and relax a little workforce, the level is not as needed for the DAO’s adoption as a framework in the law industry.
Though other industries get influenced with time, law industries are not always on the run. There are still at present, many firms that hold fast to their traditional models of business and corporate architecture. And many refuse to use legal technology platforms like Diligen and Luminance.
DAOs have already furrowed their way into the legal ground, though the road to adoption is long. Back in 2021, “Constitution DAO” sought to buy a copy of the constitution of the United States. It shut down after it lost its bid at Sotheby’s.
The project ran behind the idea of the general population having a copy of the constitution. They sought to buy the last remaining copy and put it on public display. While the project took off at a big pace and raised around Ether worth around 40 million dollars, they lost to a private bidder at 42.2 million dollars.
Though the project was not successful, the Constitution DAO was a pivot movement showing, that ‘The DAO framework’ has the potential to transform the law landscape.