- 1inch has appointed STORM partners as their permanent legal counsel.
- STORM Partners will look to help 1inch navigate the mounting legal challenges in the web3 landscape.
- STORM Partners’ legal team explains their strategies to help 1inch navigate the legal complexities of the Web3 landscape.
As the crypto industry undergoes rapid growth amid increasing regulatory scrutiny, decentralized entities, especially decentralized autonomous organizations (DAOs), face mounting legal uncertainties threatening their continued development. In a pivotal moment for the industry, 1inch DAO has made history by voting to engage legal counsel as the platform strives to understand and navigate the intricate challenges of the Web3 landscape.
1inch and STORM Partnership Sets a Historic Precedent for DAOs
On Friday, January 12, 1inch DAO users voted to appoint Geneva-based Web3 solutions provider STORM Partners as their permanent legal counsel. This historic decision, achieved through a single-choice voting process that concluded on January 9, saw an overwhelming 97% majority in favor of getting ‘comprehensive legal support’ from the firm.
The decision sets a historic precedent for DAOs as it is the first time in history that a DAO has opted to hire legal counseling services. STORM, now serving as the permanent legal counsel for 1inch, is poised to address the unique and intricate challenges inherent in the decentralized ecosystem, leveraging its extensive experience to navigate this complex terrain.
The partnership between STORM and 1inch marks a significant leap for DAOs on various fronts, whether user interactions or legal representation. In its official notice for the vote, STORM Partners acknowledged that legal uncertainty and ambiguity are the biggest threats to the future of DAOs. To ensure 1inch’s continued operation, especially in the rapidly evolving web3 landscape, the DAO needs to recognize that it is not beyond the bounds of the law and cannot avoid adverse legal consequences even if it prioritizes complete anonymity.
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Nicola Massella, director of the Legal and Compliance department at STORM Partners, spoke to DailyCoin about how it looks to establish a legal foundation for 1inch, given the complex nature of decentralized entities.
STORM Partners’ DAO Strategy
Masella delved into the long list of strategies it plans to implement for 1inch. The director shares that their primary focus is to ensure the DAO maintains the community’s self-regulatory abilities while navigating legal complexities.
Sponsored
Sharing STORM Partners’ vision for the partnership, Nicola Massella stated:
“STORM Partners will integrate legal strategies that resonate with 1inch DAO’s objectives in the Web3 space. This means ensuring the DAO’s operations and innovations comply with evolving Web3 regulations, safeguarding its decentralized ethos while navigating legal complexities. Our role is to provide legal clarity and stability, allowing 1inch DAO to pursue its mission with confidence, knowing its legal bases are covered.”
Massella further explained that STORM Partners’ Power of Attorney extends beyond representing the DAO before third parties. The web3 solutions provider aims to create a structured legal framework encompassing governance policies and internal rules that are legally binding and enforceable, thereby preventing disputes and maintaining order while upholding community decisions in a legally compliant manner.
Regarding its legal services, Massella highlighted that STORM Partners aims to shoulder the legal complexities for 1inch, allowing the network to concentrate on its core activities. He said,
“Our service spectrum covers key areas like regulatory compliance, contract management, IP protection, and legal entity structuring. By handling these complex legal aspects, we enable 1inch DAO to focus on its core activities without legal distractions, leading to enhanced operational efficiency and risk mitigation.”
According to the voting notice, 1inch is set to pay the law firm an immediate retainer fee of 50,000 USDC. The positive response from users in the voting process indicates excitement about the partnership and anticipation for the benefits it will bring.
On the Flipside
- DAOs have previously hired legal teams for certain court cases in the past.
- In 2023, the SEC brought 501 ‘stand alone’ cases in its crackdown against 2023.
- The SEC denied Coinbase’s request for tailored crypto regulations in 2023.
Why This Matters
1inch’s partnership with STORM Partners could change how DAOs operate in the rapidly evolving Web3 landscape. The collaboration emphasizes the importance of the legal complexities of the space and the need for a proactive rather than a reactive approach that most platforms employ.
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