How does a DAO approach disputes or disagreements related to legal contracts?

Select jurisdiction

  • Poland


In general, a DAO might consider the following approaches to resolve disputes or disagreements:

1. Internal resolution: Many DAOs have built-in governance structures and processes that allow members to vote on proposals or decisions, including resolving disputes. This internal
process might be the first step to address disagreements.

2. Arbitration or mediation: Parties to the contract may have agreed to resolve disputes
through arbitration or mediation. This could involve a neutral third party who helps the
parties reach an agreement or makes a binding decision, depending on the chosen method.

3. Smart contract mechanisms: If the contract was executed as a smart contract, it might have built-in mechanisms to resolve disputes, such as triggering specific conditions or penalties upon non-compliance.

4. Traditional litigation: If the dispute cannot be resolved internally or through alternative
dispute resolution methods, parties may need to resort to traditional litigation in Polish courts. However, the lack of a clear legal framework for DAOs in Poland might make this
process more challenging.

Maciej Niezgoda

Intellectual Property, Data Protection, DeFi, Fintech, AML

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