Who Pays the Taxes in a DAO?

Decentralized Autonomous Organizations (DAOs) operate without traditional management structures, but their legal recognition remains complex. Unregistered DAOs, as seen in the Ooki DAO case, risk being treated as unincorporated associations or general partnerships—exposing members to unlimited liability. Registered DAOs may gain benefits like limited liability through LLC or foundation structures, yet still face hurdles in tax compliance, cross-border reporting, and identifying pseudonymous members. Jurisdictions worldwide—from Wyoming to Switzerland—are experimenting with frameworks, but uncertainty persists around liability, taxation, and enforcement.