1inch DAO Partners with Legal Firm STORM Partners to Enhance Governance and Compliance

The DAO of 1inch, a decentralized exchange (DEX) aggregator, has voted to hire permanent legal counsel from Storm Partners, a Web3 solutions provider based in Geneva.

1inch DAO has decided to hire a permanent legal counsel to address the challenges posed by its decentralized nature.

Last updated: January 12, 2024 06:12 EST | 2 min read

Image source: Adobe Stock, Hassan Shittu

The decentralized autonomous organization (DAO) of 1inch, a decentralized exchange (DEX) aggregator, has voted to enlist permanent legal counsel from Geneva-based Web3 solutions provider Storm Partners. The decision was made to help 1inch address the legal challenges posed by its decentralized nature.

Overcoming Legal Challenges

On January 9, the 1inch DAO concluded a single-choice vote to acquire “comprehensive legal support” from Storm, with overwhelming support from a majority of 96.45%. As a decentralized organization, 1inch DAO faces intricate legal challenges that require legal assistance to navigate regulatory risks, protect stakeholder interests, and maintain operational resilience.

• The Impact of XRP Burns on Token Value: Ripple’s CTO Weighs In 💥💰🔥
• Big Updates, Big Things In Store: Cardano Soars with Bullish Momentum 🚀
• Ethereum Price Prediction for 2022: Expert Believes ETH Could Hit $10,000

The legal services provided by Storm Partners will include cross-jurisdiction regulatory compliance, contractual agreements, the DAO governance framework, liability and asset protection, intellectual property, enforcement of rights, and defense against external claims. This engagement aims to provide comprehensive legal support to 1inch DAO, addressing various operational challenges and ensuring compliance with legal requirements.

The Need for Legal Assistance

The decision to hire permanent legal counsel stems from the increasing tendency of courts to apply traditional legal principles to decentralized entities. Recent cases in Europe and the United States have highlighted the need for decentralized organizations to address regulatory risks, liability concerns, contractual ambiguities, lack of legal recognition, and challenges in enforcing rights.

One notable case involves BarnBridge DAO and its founders, Tyler Ward and Troy Murray, who faced legal scrutiny resulting in a $1.7 million settlement for selling “unregistered securities” deemed by the SEC. These legal challenges have led 1inch DAO to recognize the importance of legal support in mitigating risks and ensuring a stable future.

Benefits of the Partnership

Storm Partners will actively contribute to the internal regulation of 1inch, including drafting governance rules and policies, entering contracts, enforcing rights, and communicating with third parties in alignment with community decisions. Through this partnership, 1inch DAO aims to establish a strong and legally sound structure to support its growth and ensure its long-term existence.

Payment and Engagement Details

As part of the agreement, the DAO will pay a retainer fee of 50,000 USDC to cover STORM Partners’ fees and related external expenses. STORM Partners will provide quarterly reports detailing their activities for 1inch DAO and the fees incurred. In the event of termination, any surplus amount from the retainer fee will be promptly refunded.

Proactive Legal Support

Nicola Massella, Director of the Legal and Compliance Department at Storm Partners, emphasized that the engagement is intended to complement the community’s self-regulatory abilities. While the community retains full control over the governance of 1inch DAO, the legal team’s role is to convert community decisions into a structured set of rules and legal frameworks. This move reflects the growing recognition of the importance of legal support in navigating the evolving regulatory landscape for decentralized autonomous organizations.

---

Q&A: Additional Insights on 1inch DAO’s Legal Partnership

Q: Why did 1inch DAO decide to enlist permanent legal counsel?

A: 1inch DAO recognized the legal challenges faced by decentralized organizations, such as regulatory risks, liability concerns, and lack of legal recognition. By hiring permanent legal counsel, 1inch can navigate these challenges more effectively and protect stakeholder interests.

Q: What specific legal services will Storm Partners provide to 1inch DAO?

A: Storm Partners will offer cross-jurisdiction regulatory compliance, assistance with contractual agreements, development of the DAO governance framework, asset protection, intellectual property support, enforcement of rights, and defense against external claims.

Q: How will the partnership with Storm Partners benefit 1inch DAO?

A: This partnership will establish a strong and legally sound structure for 1inch DAO, ensuring compliance with legal requirements and providing comprehensive legal support. Storm Partners will contribute to drafting governance rules, entering contracts, enforcing rights, and communicating with third parties.

Q: How will Storm Partners contribute to the internal regulation of 1inch DAO?

A: Storm Partners will actively participate in the development of governance rules and policies, ensuring alignment with community decisions. They will help convert these decisions into a structured set of rules and legal frameworks to ensure compliance and mitigate legal risks.

---

Reference List:

1. PancakeSwap Developers Launch Proposal to Reduce CAKE Token Supply
2. NFT Predictions 2024: Trends and Challenges Coming Next Year
3. SEC Blasts Purportedly Decentralized DAO’s $17M Settlement

---

As the legal landscape surrounding decentralized organizations continues to evolve, it’s crucial for projects like 1inch DAO to proactively address legal challenges. By partnering with Storm Partners, 1inch DAO has set a historic precedent by directly hiring a legal team. This move demonstrates the growing recognition of the importance of legal support for DAOs and their long-term success.

What are your thoughts on this partnership? Do you foresee more DAOs enlisting legal counsel in the future? Share your opinions and join the conversation!

🔥🚀 Don’t forget to share this article on your favorite social media platforms to spread the word about 1inch DAO’s groundbreaking partnership with Storm Partners! 🚀🔥

We will continue to update Blocking; if you have any questions or suggestions, please contact us!