1inch DAO Hires Legal Counsel from Storm Partners

The 1inch decentralized autonomous organization (DAO) has made a strategic move by voting to hire permanent legal counsel from Geneva-based Web3 solutions provider, Storm Partners. This decision is aimed at helping the DAO navigate the complex legal landscape that comes with its decentralized nature.

DAO’s Decision for Legal Support:

The DAO community voted overwhelmingly in favor of obtaining comprehensive legal support from Storm Partners, with a 96.45% approval rate. The Swiss firm will provide a range of legal services, including regulatory compliance checks, entity structuring, governance policy development, contractual support, intellectual property protection, and legal defense against external claims.

One of the key reasons behind hiring permanent legal counsel is the increasing tendency of courts to apply traditional legal principles related to corporate liability and regulatory obligations to decentralized entities. Recent cases in Europe and the United States highlight this trend.

The DAO acknowledges various regulatory risks, liability concerns, contractual ambiguities, and the need for enforcement of rights, indicating the necessity of legal counsel for future challenges. As stated by the DAO, an organization with ambitions to shape the future of finance must confront and address its legal challenges proactively.

Apart from legal support, Storm Partners will also assist in drafting governance rules and policies for 1inch, aligning them with the community’s decisions. The DAO has committed to paying a retainer fee of 50,000 USD Coin to the law firm.

Nicola Massella, director of the Legal and Compliance department at Storm Partners, emphasized that their engagement is meant to complement the community’s self-regulatory abilities, not replace them. The community retains full control over the governance of the 1inch DAO, with Storm Partners converting their decisions into structured legal frameworks.

The decision to engage a legal team is primarily proactive, aiming to safeguard the 1inch DAO and its members against unforeseen legal issues, particularly personal liability risks for DAO members.

This partnership between 1inch DAO and Storm Partners is significant, marking a historic precedent as it is the first time a DAO has directly hired a legal team. This move could set an example for other DAOs in the industry, highlighting the importance of legal preparedness in the decentralized space.