Distributed Governance

59 William & Mary Law Review Online 1

32 Pages Posted: 15 Dec 2016 Last revised: 23 Sep 2017

Carla Reyes

Michigan State University College of Law; Berkman Klein Center for Internet & Society at Harvard University

Nizan Geslevich Packin

City University of New York - Department of Law

Benjamin Edwards

University of Nevada, William S. Boyd School of Law

Date Written: December 13, 2016

Abstract

Distributed ledger technology enables disruption of traditional business organizations by introducing new business entities without the directors and officers of traditional corporate entities. Although these emerging entities offer intriguing possibilities, distributed entities may suffer significant collective action problems and expose investors to catastrophic regulatory and governance risks. Our essay examines key considerations for stakeholders and argues that distributed entities must be carefully structured to function effectively.

This essay breaks new ground by critically examining distributed entities. We argue that a distributed model is most appropriate when DLT solves a unique corporate governance problem. We caution against ignoring the lessons painstakingly learned through past governance failures.

Keywords: Cyberlaw, Bitcoin,Ether, Crypto, Cryptocurrency, Crypto Currency, Currency, Digital Currency, Governance, Securities, Corporate Governance, Free Rider, Fintech, DAO, Hacking, Cybersecurity

JEL Classification: G3, G30, G38, G39, M12, M14, O3, O32, K2, K22

Suggested Citation

Reyes, Carla and Packin, Nizan Geslevich and Edwards, Benjamin, Distributed Governance (December 13, 2016). 59 William & Mary Law Review Online 1. Available at SSRN: https://ssrn.com/abstract=2884978 or http://dx.doi.org/10.2139/ssrn.2884978

Carla Reyes

Michigan State University College of Law ( email )

318 Law College Building
East Lansing, MI 48824-1300
United States

Berkman Klein Center for Internet & Society at Harvard University ( email )

Harvard Law School
23 Everett, 2nd Floor
Cambridge, MA 02138
United States

Nizan Geslevich Packin

City University of New York - Department of Law ( email )

New York, NY
United States

Benjamin Edwards (Contact Author)

University of Nevada, William S. Boyd School of Law ( email )

4505 South Maryland Parkway
Box 451003
Las Vegas, NV 89154
United States

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