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|a A Decentralized Autonomous Organization ("DAO") is a new species of organization that exists only in cyberspace. Essentially, it is comprised of lines of computer code that execute a specific business logic and govern how its members transact with each other. The code is stored in a blockchain, which makes the DAO decentralized, trustless, cost-efficient, and precise. While DAOs are designed to operate without any regulation other than the rule of code, the code cannot always provide for the protection of the interests of DAO members and of the public. As such, a for of external regulation is necessary. After careful analysis, this Article submits that the current state of Philippine laws is not ready to provide such regulation. The main business organizational laws in the Philippines, Partnership Law and Corporation Law, do not address the legal problems that DAOs may encounter without significantly altering their nature and unique features. Organizing a DAO as a Philippine partnership or corporation is comparable to fitting round pegs into square holes. Thus, it is necessary to enact new legislation to govem DAOs. The new law must give full protection to public interest, but still maintain the essence and
integrity of DAOs.
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