Cayman Foundation companies are gaining traction as the preferred legal structure for DAOs (Decentralized Autonomous Organizations). This novel approach offers distinct advantages to these organizations, including formal recognition and limited liability. By offering these benefits, Cayman Foundation Companies facilitate increased institutional confidence and operational adaptability for DAOs. The development is driven by the 2017 Foundation Companies Act in the Cayman Islands, which provides clear legal mechanisms for creating these entities. This has led to a surge in adoption, with experts attributing this growth to DeFi expansion and increasing interest from institutions. While specific financial impacts remain undisclosed, the move signals a shift towards more formal DAO operations. )