The 1inch Decentralized Autonomous Organization (DAO) has made the decision to appoint Storm Partners, a Web3 solutions provider based in Geneva, as its permanent legal counsel. In a vote that concluded on January 9, the DAO members overwhelmingly supported the move, with 96.45% in favor. Storm Partners will offer comprehensive legal assistance to help 1inch navigate the challenges arising from its decentralized nature. The Swiss firm's services will cover regulatory compliance examinations, entity structuring, governance policy development, contractual support, intellectual property protection, and legal defense against external claims.
The decision to acquire permanent legal counsel stems from the observation that courts often apply traditional legal principles regarding corporate liability and regulatory obligations to decentralized entities, as seen in recent cases in Europe and the United States. The DAO acknowledges potential regulatory risks, liability issues, contractual ambiguities, and rights enforcement concerns that may necessitate legal guidance in the future. The proactive approach aims to address these challenges and safeguard the 1inch DAO as it seeks to shape the future of finance and empower individuals to control their wealth.
Storm Partners' role goes beyond legal advice; they will actively participate in 1inch's internal governance. This involvement includes drafting governance rules and policies based on community decisions. To initiate this collaboration, the DAO will provide a $50,000 token retainer fee in USDC to the law firm. Nicola Massella, the head of legal and compliance at Storm Partners, emphasized that their role is complementary to the community's self-regulation. While the legal team assists in translating community decisions into a structured set of rules and a legal framework, the community retains full control over 1inch DAO governance, ensuring key decisions about its operations and future remain within their purview. The proactive hiring of a legal team reflects the DAO's commitment to protecting its members from unforeseen legal issues and mitigating potential personal liability risks.
