Commentary-10
The protection of minority rights, such as those of minority shareholders, is an important principle in the corporate law of every jurisdiction. With respect to DAOs, the ease of entry and exit, in conjunction with the extensive disclosures inherent to such entities, act as a first line of protection for minorities against abuses by majorities. Furthermore, in line with the objective of using the DAO's Dispute Resolution Mechanism to resolve disputes among Members (Article 4(1)(j)), minority Members may raise a dispute through the mechanism that is specified at the time of DAO formation. DAOs may wish to provide even greater protections to minority DAO Members, particularly in the event of major or contentious decisions and transactions. The Model Law provides room for such protections to be introduced through the DAO's By-Laws (Article 10(1)). Several DAOs, for instance, have implemented "ragequit" features (e.g., MolochDAO, MCV), whereby Members unhappy with specific decisions may immediately exit the DAO with their proportional share of On-Chain funds.