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16. CONTENTIOUS FORKS IN THE UNDERLYING BLOCKCHAIN

In the event of a Hard Fork in the underlying Permissionless Blockchain:

  • By default, the legal representation of the DAO remains on the Majority Chain and any Off-Chain Assets will belong to the DAO on the Majority Chain.

  • The DAO may choose to maintain legal presence on a Minority Chain if it expresses its intent to do so by Public Signaling, and in that case any Off-Chain Assets will belong to the DAO on the selected Minority Chain.

  • The DAO may liquidate its On-Chain Assets following a Hard Fork in order to move those Assets to the chosen chain.

  • Alternatively, the DAO may choose to split into multiple legal entities, each on a separate chain, if it communicates by Public Signaling:

    • its intent to do so, and

    • there is a definitive distribution of Off-Chain Assets between the Majority and Minority Chain(s).