DAOs as a Digital Version of Switzerland

Michael Heger
7 days ago
2 min read

When a digital organisation on the blockchain interacts with the traditional world, such as by opening a bank account or signing contracts, it requires a recognised legal personality, i.e. an entity anchored in an existing legal system.

This is where the so-called 'legal wrapper' comes into play: a foundation or association acts as the legal representative and performs actions that a DAO itself cannot.

Few countries are better suited to this than Switzerland.

The reason is as simple as it is remarkable. Switzerland’s governance culture aligns strikingly well with how DAOs operate. However, this is only one of several factors that have turned Switzerland into a global hub for DAOs in recent years.

Why Switzerland?

Together with Ben Hoelzl, Caspar Leuzinger and Florian Spychiger, I authored the DAO Radar Switzerland – the first comprehensive mapping of the Swiss DAO ecosystem. One of the key insights: Switzerland brings together several characteristics that make it an ideal home for DAOs:

Direct democracy – decisions made by the community
Decentralisation – federalism and subsidiarity
Consensus-oriented politics – broad legitimacy instead of top-down control
Regulatory clarity – the DLT Act, FINMA, SECO
A mature blockchain ecosystem – more than 1,700 organisations
Strong academic research – including the University of Zurich, University of Basel, University of Neuchâtel and ZHAW

This combination creates an environment in which DAOs can establish a legal presence in Switzerland without compromising their decentralised nature, striking a rare balance between digital innovation and legal stability.

Who is already here?

It is no coincidence that major projects such as Safe DAO, the Aragon Association, Olympus DAO, dYdX DAO, Curve Finance DAO or Gelato DAO have made Switzerland their home. They use association or foundation structures to bridge the gap between on-chain governance and off-chain obligations.