Regulatory consequences of adopting the sequential auction mechanism

Ascertain the regulatory classification and obligations that apply when a DAO adopts the sequential auction control mechanism across major jurisdictions (e.g., EU MiCA, U.S. SEC/CFTC oversight), including the mechanism’s effect on decentralization determinations, registration requirements, and compliance burdens.

Background

The paper surveys three broad regulatory approaches—decentralization-focused regimes, joint-and-several responsibility frameworks, and regulatory gradualism—and notes that creating visible control parties could alter how regulators classify or supervise a DAO.

Given unsettled legal landscapes (especially in the U.S.) and varying international regimes, the authors explicitly note uncertainty over the regulatory impact of shifting to the proposed mechanism.