As regulators close in on DeFi, KuCoin Labs has predicted that the industry may turn to DAO governance to reduce regulatory risks:According to KuCoin Labs, a DAO that puts community interest first can carry out “true governance decentralization.” This is why the exchange has forecasted that the industry will see a shift in DeFi governance being coordinated using different mechanisms.
KuCoin Labs also suggested that the fundamental operational principles of DAOs are reasonable enough to be employed as foundations for the creation of legal entities. While the industry may not witness a DAO expansion breakthrough in the coming year, the report notes that refining their mechanisms may set the stage for their adoption by companies and corporations as well.