GlossaryIntermediate
Legal Wrapper
A real-world legal entity a DAO adopts to interface with the traditional legal and financial system.
A legal wrapper is a real-world legal entity — commonly an LLC, a foundation, or a purpose-built structure such as a Wyoming DAO LLC — that a DAO adopts so it can sign contracts, hold off-chain assets, and in many structures, limit members' personal liability.
A well-designed wrapper is generally structured so its real-world actions must follow the DAO's on-chain votes, rather than granting a small group of signers unchecked authority.
Examples
- A DAO might adopt a legal wrapper to sign a real-world vendor contract.
- A legal wrapper can limit members' personal liability, depending on the entity type and jurisdiction.