Commentary-19

There may be a few instances in which the By-Laws of a DAO and the Model Law are not able to address all of the organizational and governance issues that arise from the operation of a DAO. In such circumstances, the general business organization law of the State that recognizes the DAO may be used to address these lacunae. However, as general business organization laws are generally drafted with centralized organizations in mind, applying these laws may present their own difficulties. As a consequence, any such application of general business organization laws must only be done if the By-Laws and Model Law cannot be applied and any resulting ambiguity must be resolved in a manner that upholds the letter and objectives of the Model Law. These objectives can be found in the Preamble of this Model Law.