Commentary-11

The Model Law seeks to avoid being overly prescriptive about the internal organization of DAOs. Therefore, the founders, Administrators and Members of a DAO have considerable leeway in designing the internal organization and procedures of the DAO. This is akin to the flexibility afforded to LLCs in several US states, and to LLPs and private companies limited by shares in the United Kingdom. Given the nature of DAOs, several of these procedures will be part of the code of a DAO's Smart Contracts, but to maximize accessibility to laypersons, these internal rules and procedures should be accurately represented in the DAO's By-Laws as set forth in this Articles 11(1) and Article 4(1)(f).