California Court Rules Lido DAO Can Be Considered a "Limited Partnership Formed Under State Law"

BlockBeats News, November 19th, according to Decrypt's report, the Northern District of California Federal Court in the United States ruled that Lido DAO can be considered a general partnership established under state law. The court rejected Lido's claim that it was not a legal entity, classifying it as a general partnership, setting a precedent for the treatment of profit-driven decentralized autonomous organizations (DAOs).

The court also ruled that identifiable participants in Lido DAO are involved in managing the DAO's operations, therefore unable to escape liability through its decentralized structure. According to court documents, Paradigm Operations, Andreessen Horowitz, and Dragonfly Digital Management were accused of being general partners because they were alleged to actively participate in Lido's governance and operations.

Miles Jennings, General Counsel and Decentralization Lead at a16z crypto, stated in a declaration that the judge's decision "represents a significant blow to decentralized governance." He pointed out that, based on the ruling, any DAO participation (even through posting on a forum) could be sufficient under general partnership law to hold DAO members accountable for each other's actions.