The Appleby technology and innovation team in the Cayman Islands, led by Partner Peter Colegate and Senior Associate Marsha Williamson, was delighted to advise Taiko DAO on the launch of its DAO Security Council.
Taiko is a zero-knowledge rollup solution providing a developer-friendly and secure Layer-2 scaling solution on Ethereum. Layer-2 solutions help Ethereum handle more transactions by processing them off the main blockchain (but still using Ethereum for security).
Launching the Security Council represents a major step towards decentralisation of the decision-making processes for Taiko DAO as it gears up for its full launch later in 2025. The inaugural members of the Security Council include eminent web3 players, including Daniel Wang (cofounder of Taiko), Aragon and representatives of the Ethereum Foundation.
The security council plays a key role in protecting the integrity of the DAO and its protocols. Typically, members are elected to the council who can make proposals, vote using multi-sigs and take emergency action (eg against malicious attacks) to protect the protocol. Security councils are becoming increasingly popular, particularly for Layer-2 solutions looking to attain “Stage 1 decentralisation” status.
Our technology and virtual assets practice
Our Band 1-ranked FinTech team in the Cayman Islands regularly advises businesses on the regulatory scope of the virtual assets regime and potential exemptions, steering clients through the CIMA application process and their ongoing regulatory obligations. We work with first-time founders through to some of the world’s largest cryptocurrency exchanges, together with our global team of technology and digital assets experts in all major offshore centres.
We support with initial structuring, entity formation, establishing by-laws and governance structures, regulatory applications and actions, token launches and other fundraising and investments, services agreements, software development and IP licensing arrangements, through to partnerships, acquisitions and exits (including SPACs/deSPACs and IPOs). We also work with crypto-focused investment funds and other investors across their virtual assets investments.
