Commentary-14

The position of Legal Representative was created to enable DAOs to engage with Off-Chain systems and processes, which may be increasingly necessary as DAOs become involved in increasingly complex tasks and activities as well as engagement with traditional third party entities. As it cannot be expected that all foreseeable actors will interact with the DAO On-Chain, the appointment of a Legal Representative allows for DAOs to undertake specific tasks and activities---without leading to classification of such Persons as fiduciaries of DAOs.

To give third parties transacting with DAOs assurance that a person is authorized by the DAO as a Legal Representative, the continued validity of an authorization should be verifiable by cryptographic proof and simultaneous post in the Public Forum. If the authorization of a Legal Representative is withdrawn, it should be withdrawn in the Public Forum in which it was originally granted, as well as On-Chain, in order to prevent tampering. In this instance, an example of a Public Forum could be a website administered by a centralized operator or hosted in a decentralized manner. A cryptographic proof could be a plain text message cryptographically signed by a DAO multisig or individually by a quorum of signers.