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In one of its kind problems, Curve Finance’s token holders have made an unusual proposal and DAO should engage competent counsel. Bringing legal action on the part of DAO could be healthy for decentralized finance and the other sign is that DeFi is maturing as per the analysts.
A well-known decentralized exchange for stablecoin trading and one of the world’s largest decentralized autonomous organizations (DAO), Curve Finance has $6.5 million in deposits. But in a very rare case, last week one of its token holders made an unusual proposal.
The ethereum-based DAO should engage competent counsel in the U.S. and other important jurisdictions to prevent other DAOs from copying its software code. But the question is what is unusual in this? In the open source DeFi world, taking legal action against another DAO for intellectual property (IP) infringement is never done.
However, in this case, Saddle Finance which is a newer and smaller DAO had violated the license on its contracts. DAOs are never legal entities and hiring a law firm to protect its IP is a breach of the DeFi ethos. It deletes anything which is connected with lawyers, copyrights, courts or business licenses.
Attorney Sam Miorelli told the government forum Curve that intellectual property infringement is not only wrong, it’s value is disruptive for the infringer and the infringed. There has to be a stricter format and a notice needs to be put which explains that decentralization does not mean that Venture Capital firms are allowed to steal from communities. Saddle is backed by several venture capital companies, some of which have high reputations in their respective fields.
When Miorelli posted his opinion, he got 32,00 views on his post and there was a storm created on social media on june 24. He was booked with $5.5 billion just behind Curve. Adam Cochran, Managing Partner of Cinneamhian Ventures, shared that it is all baseless. The people who are greedy and cannot compete with innovation. They think that this place was built to replace them in the first place.
There were views about the Curve governance forum doing the rounds that by introducing the By strictly following the licensing rules, talented programmers will deter those seeking new technologies. Would Satoshi and Hal contribute to the Curve if they were around? –
While others are in favour of Miorelli, For example, a survey conducted on the forum showed that two-thirds (67%) support the proposal to protect Curve’s intellectual property from infringement. Gabriel Shapiro, partner at Law firm Belcher, Smolen and Van Loo is of the opinion that the code is law mantra is faulty in this context.
lack of intellectual property rights may be a positive factor in diversifying funds, which is another sign that it is entering the mainstream of the economy. Shapiro believes that IP rights is indeed a sign of the DeFi sector maturing.
Keeping the value of network intact
Shapiro also explained that governance tokens like Curve’s CRV shares of equity in a network or digital commons. He explained by citing an example of Tesla Inc. like TSLA stockholders would want Tesla to defend Tesla IP rights to prevent them from leaking from TSLA stock. Therefore, shareholders want to maximize and maintain the net present value of their network.
Wuf Kaal, professor at the University of St. Thomas School of Law said that DAOs are recognized by jurisdiction. They will replace the good portion of existing business constructs. It is also now possible that intellectual property issues under existing law will resurface in the DAO context.
Other is only one place where DAOs will get recognition and it is Wyoming, which passed the first state law in March addressing governance issues for DAOs. It will be effective from July 1, 2021. As per the new law that recognizes DAO as a distinct form of the limited liability company. It has a lot of benefits to LLCs including limited liability for owners.
As per the bill, the DAO is defined in two ways as member managed or algorithmically managed. The a;gorithmically managed DAO which would be decentralized may only form if the underlying smart contracts are capable of updates and modifications.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
