Can a DAO be required to provide security or collateral under a contract?
Parties to a contract may agree on certain terms and conditions, including the requirement for one party to provide security or collateral to secure the performance of its obligations. Traditional legal entities, such as corporations and partnerships, can provide security or collateral under a contract and can be held liable for their obligations. If a DAO enters into a contract requiring security or collateral through a smart contract, the legal enforceability of the smart contract in Polish jurisdiction is not well-established. However, if a smart contract were to be recognized as legally enforceable under Polish law, the ability of the DAO to provide security or collateral under the contract would likely depend on factors such as the specific terms and conditions of the agreement and the intentions of the parties involved.
Second possibility is that individual members or participants of the DAO could provide security or collateral on behalf of the DAO, especially if they were directly involved in the agreement or had a vested interest in the performance of the DAO's obligations.