Why Traditional Investors May Not Love DAOs

On June 9 of this year, the community of Merit Circle DAO voted out Yield Guild Games (YGG) as their seed investor. By doing so, the community canceled the SAFT agreement binding Merit Circle Ltd., its parent entity, and its investor, YGG. This vote was the first incident where decentralized autonomous organization (DAO) governance overturned a legal agreement, and in its aftermath sent shockwaves across the investor ranks.