Curve Finance, a decentralized stablecoin exchange, is one of the world’s largest Decentralized Independent Organizations (DAOs) with $ 6.5 billion in deposits, but last week one of the token holders came up with an unusual proposal:

An Ethereum-based DAO must “appoint a competent advisor” – both in the United States and in other relevant jurisdictions – to prevent other DAOs from “bulk copying” their code.

Why is this unusual? In the world of open source decentralized finance (DeFi), no lawsuits have been filed against another DAO for intellectual property (IP) infringement. In this case, Curve said it was “99% certain” that Saddle Finance, the newer and smaller Dow company, had violated the contractual license.

Technically, DAOs aren’t even legal entities. In addition, hiring a law firm to protect its intellectual property is a violation of DeFi principles, which often avoid anything related to lawyers, copyright, courts or commercial licenses, and where open source software is a public good.

But here lawyer Sam Murrelli of Curve Management Forum stated that “infringement of intellectual property rights is not only wrong, it destroys value for both the infringer – who spends time copying instead of creating – and the infringer who loses value. investing in other DAOs looking for Purloin tokens should be informed that “decentralization does not mean that venture capital steals from society.” Hall is supported by a number of venture capital firms, some of which are visible in this field.

Miorelli’s post has garnered 3,200 views since June 24 and sparked a small social media storm. Robert Lesnar, CEO of Compound, the Ethereum-based DeFi lending platform and the third-largest DAO with a total insurance value of $ 5.5 billion, just after Curve, warned: “The meat court’s cry seriously undermines the ‘code is law’ principles. “That DeFi was founded on. It’s a slippery slope that ends with the end of DeFi. ”

Meanwhile, Adam Cochran, managing partner of Cinneamhain Ventures, added: “It’s all bullshit, greed, driven by people who can’t compete to innovate and build the terrible gardens that this room was built to replace.”

Meanwhile, another poster on the Curve Management forum expressed concern that Curve, by entering into a robust licensing process, will “stop” the most talented programmers “where technology is.” Will Satoshi and Hal be contributing to Curve if they’re around? I don’t think so. ”

But others supported Morelli. For example, two-thirds (67%) of polls on the forum were devoted to the proposal to “defend Curve’s intellectual property rights against violators”. Elsewhere, Gabriel Shapiro, a partner at Belcher’s law firm, Smolen & Van Loo, argued that the slogan “symbol is law” is incorrect in this context, and told Cointelegraph:

“Token is the law” is a parable about the users of a particular smart contract or system who agree to obey the results of this code instead of resorting to an expensive and ineffective legal system. Curve has never chosen a smart contract or other symbolic system to define its intellectual property rights, and in fact there is no such token. ”
An intellectual property claim from the DAO could be favorable to decentralized finance – another sign that it is entering the mainstream financial industry, some have argued. “I think the Curve community’s interest in protecting intellectual property rights is indeed a sign of maturation in the DeFi sector,” Shapiro said.

Morelli himself seemed pleased with the response and told Cointelegraph that the absolute truth about such a discussion is positive, adding:

“This not only shows that DeFi is in its maturity stage, but it also shows that the communities that have formed around these revolutionary projects are really thinking long-term.”
Maintain your “network value”
Shapiro further explained that control tokens such as CRV Curve are stored on the network or in the digital community, saying, “Just like TSLA shareholders want Tesla to protect Tesla’s intellectual property rights in batteries or applications to prevent value leakage from stock TSLA “. Likewise, CRV holders will maximize and maintain shareholder value across their network. He also stressed that he was not commenting on the merits of these intellectual property claims – only that the “motive” for preserving the value of network capital was clear and predictable.

Source: CoinTelegraph