Collaboratively governed and code-driven, decentralized autonomous organizations (DAOs) are engaged in nothing less than an experiment to reimagine how we connect, collaborate and create. Although DAOs today manage billions of dollars’ worth of assets, engage millions of contributors and operate across industries as diverse as finance and philanthropy, basic questions regarding operations, governance, law and policy are only just beginning to be addressed by policy-makers, regulators and entrepreneurs. The result of a collaboration involving more than 100 experts spanning the public and private sectors, the DAO Toolkit provides resources for developers, policy-makers and other stakeholders seeking to engage with the DAO ecosystem.

Decentralized autonomous organizations are disrupting whole sectors. From finance to social networking to philanthropy, these code-driven, community-governed entities are changing the way we work. Yet these organizations also confront challenges of cybersecurity, governance, and regulatory uncertainty. The Crypto Impact and Sustainability Accelerator and Wharton Blockchain and Digital Asset Project have teamed up with an international group of crypto experts, civil society leaders, and builders to examine this nascent, but critical, emerging form.

Decentralized finance (DeFi) is an emerging and rapidly evolving area in the blockchain environment. Although examples of DeFi have existed for several years, a sudden upsurge of activity in 2020 has simulated interest from the private and public sectors. This toolkit highlights DeFi’s distinguishing characteristics and opportunities, while also calling attention to the new and existing risks. As well as providing an overview of the DeFi space generally, it maps out the potential legal and regulatory responses. The result of an international collaboration among academics, legal practitioners, DeFi entrepreneurs, technologists and regulatory experts, the report provides a solid foundation for understanding the major factors that should drive policy-making decisions.

DeFi is a developing area at the intersection of blockchain, digital assets, & financial services. Over $80B of digital assets are locked in DeFi protocols, up from less than $1B a year ago. The potential of a disintermediated, fully digital financial system is exciting, but there are uncertainties, risks, & regulatory concerns. This project is working to provide clear, unbiased information on both sides of that equation. This report covers DeFi services - what are they and how do they work, challenges, opportunities, and outlook for the space.