This article examines how cryptoassets such as equity tokens might change the nature of how companies and investors structure their relationships. Traditionally, corporate law theorists have argued about whether business organization law should allow for greater private ordering of relationships between companies and their investors. With the advent of blockchain and new tokenized investment opportunities, an entirely new perspective on contractual ordering has opened. With tokenized interests, not only is private ordering available to an extent never before seen in modern America, it is now required because of the absence of default rules governing the relationships between company and investor. This article explores the risks and potential benefits of this new frontier, and includes an overview of the wide range of topics that a private ordering regime will need to consider.
Goforth, Carol R, How Blockchain Could Increase the Need for and Availability of Contractual Ordering for Companies and Their Investors (September 14, 2018). North Dakota Law Review, 2018.