Uniswap plans to set up a legal entity in Wyoming to support DAO governance and maintain decentralization.
The new DUNI structure helps Uniswap handle taxes, sign contracts and follow legal rules without changing the DAO.
This move could guide other DAOs to grow while staying legal and keeping their decentralized systems intact.
The Uniswap Foundation has proposed establishing a new legal entity called DUNI. This entity would operate under Wyoming’s Decentralized Unincorporated Nonprofit Association (DUNA) framework. The move aims to bring legal clarity to Uniswap Governance while maintaining its decentralized nature. DUNI would provide the DAO with formal recognition without altering its permissionless structure.
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Wyoming passed the DUNA legislation in 2024. The framework allows decentralized groups to operate as lawful entities. The foundation believes this model suits the protocol’s goals and regulatory needs. The change could make Uniswap Governance the largest DAO to operate under this legal structure.
Operational and Legal Implications
If approved, DUNI will gain the ability to enter legal contracts and work with service providers. It will also help the DAO fulfill tax and compliance obligations. Uniswap plans to allocate $16.5 million worth of UNI tokens to cover potential tax liabilities. The Foundation estimates taxes owed to be less than $10 million. The budget includes legal defense and registration expenses.
The DUNA structure prevents distribution of dividends to members. However, it allows payment for services or reimbursements. The new setup would not centralize the DAO’s operations. It would only add a legal wrapper to existing activities.
Path Toward Protocol Fee Activation
The legal shift opens the door for Uniswap to activate protocol fees. This would redirect a portion of liquidity provider fees to the DAO treasury. The change could expand Uniswap’s revenue model and support sustainable growth.
This shift aligns with Uniswap’s broader aim to build a more resilient governance model. It enables stronger autonomy while following regulatory frameworks. The DUNI entity could also make future decision-making more efficient and secure.
Broader Impact on DAO Ecosystem
Uniswap’s step comes as several DAOs face uncertainty around governance and legal status. Some crypto projects have recently proposed centralizing efforts for efficiency. Uniswap’s approach shows a different path, legal structuring without central control.
The Foundation has shared full documentation with the community. Discussions are active across governance threads. If supported, DUNI could guide similar organizations seeking lawful structures without compromising decentralization.
The move could also bring innovation back to the U.S. It provides digital asset projects with a way to operate legally. Uniswap sees DUNI as a foundation for future tools that reduce administrative dependence. These include automated protocol and treasury management systems.
Senator Cynthia Lummis has acknowledged Wyoming’s digital asset laws. The proposal highlights Wyoming’s growing role in blockchain governance.
