10.5 DAO Governance and Legal Interface

While DAO governance is executed on-chain via smart contracts, legal structures are needed to bridge these actions with real-world enforceability. Asset Avenue uses a dual-layer governance model:

1. DAO Control via Smart Contracts All governance votes, protocol changes, and treasury allocations are initiated and finalized on-chain, verifiable by any member.

2. Legal Enforcement via Limited Company A legally registered entity executes off-chain decisions, enters into contracts with third parties, and maintains fiduciary responsibility. This entity is bound by the decisions of the DAO, creating a transparent, enforceable link between decentralized decisions and centralized execution.

This hybrid model ensures DAO members retain ultimate control while protecting against legal ambiguity in jurisdictions where DAOs lack formal recognition.