1inch DAO Hires Swiss Firm Storm Partners for Legal Representation

According to Blockworks, the 1inch DAO, which governs the 1inch network and is known for its decentralized exchange (DEX) aggregator, has hired Swiss consulting firm Storm Partners for legal and compliance services. The move comes after an on-chain vote last week, which was overwhelmingly approved and executed on Wednesday, with a retainer fee of $50,000 paid in USDC. This marks a rare instance of a DAO voting to hire legal representation, with the closest precedent being the BarnBridge DAO, which was shut down by the US Securities and Exchange Commission in July. The BarnBridge protocol aimed to mitigate risks associated with yield farming and interest rate volatility in the crypto market. Its founders agreed in a settlement released in late December that the DAO offered and sold structured crypto asset securities, known as SMART Yield bonds, in unregistered transactions. The DAO was ordered to pay $1.46 million in disgorgement to the US Treasury. Storm Partners' arrangement with 1inch is considered more innovative, as the firm made its own governance proposal with specific plans in mind. A spokesperson for Storm Partners said that the DAO has chosen them and conferred upon them a Power of Attorney to legally represent the DAO before third parties. The engagement is seen as a significant step forward in the journey towards legal recognition of decentralized organizations. Storm Partners is required to deliver a quarterly report enumerating its activities on behalf of the DAO.