The Uniswap Foundation proposes to establish the legal organization 'DUNA' in Wyoming to meet compliance and tax requirements for DAO governance.
The 16.5 million USD UNI fund will be allocated to pay for past legal and tax costs. This prepares for the fee mechanism of the Uniswap protocol to be activated, but does not change the governance structure or directly distribute profits to UNI holders.
MAIN CONTENT
Establishing the legal organization 'DUNA' in Wyoming to serve the governance of Uniswap DAO.
Allocating 16.5 million USD in UNI to cover old tax and legal costs.
Activate the fee mechanism, with revenue not directly distributed to UNI holders.
Why does the Uniswap Foundation propose to establish the legal organization 'DUNA'?
Direct answer: The Uniswap Foundation wants to establish 'DUNA' to organize DAO governance in line with legal regulations and tax compliance in the United States.
This helps regulatory authorities verify and supervise the DAO's activities, ensuring compliance with important tax and legal requirements. The new organization will operate alongside the current Uniswap protocol, without affecting the technical structure or governance of the protocol, but will be a crucial link to support legal compliance.
This is seen as a necessary step in the context of DAOs increasingly facing stricter legal controls in many stringent countries like the United States.
How will DUNA manage finances for Uniswap DAO?
Direct answer: Cowrie Advisors will manage the 'DUNA' organization as the administrative department, ensuring transparent financial management, including addressing old tax and legal costs.
The Block reveals that the 16.5 million USD UNI fund will be used to cover previously incurred costs related to taxes and legal defense. This aims to prepare for the new fee system of Uniswap to operate effectively, supporting a more stable DAO treasury.
However, revenue from this mechanism will only go to the DAO treasury, not directly distributed to UNI Token holders to maintain the decentralized and long-term sustainable nature.
Establishing a legal organization in Wyoming is an important step to complete the legal framework for the DAO, helping Uniswap develop sustainably and more transparently in an increasingly tight regulatory environment.
Cryptocurrency legal expert (2023)
How will the new fee mechanism of Uniswap operate after the establishment of DUNA?
Direct answer: The fee mechanism will be activated, with a portion of fees from limited partners flowing into the DAO fund, helping to sustain development and manage the protocol.
This financial model aims to increase resources for the DAO without changing the current tokenomics or governance rights. The collected fees will be centrally managed through the DUNA organization, ensuring transparency and legality.
This means that UNI holders do not receive profit fees directly; instead, the benefits will be reinvested to serve the community and develop the necessary ecosystem. This model also avoids conflicts of interest between users and the DAO management organization.
What is the impact of establishing DUNA on the protocol and Uniswap users?
Direct answer: The protocol, UNI Token, and governance structure remain unchanged, and users continue to experience services as usual.
The addition of a legal organization is merely an administrative and compliance change, without interfering with technical operations or voting rights in the DAO. This is important to maintain stability and avoid causing concern or volatility in the community.
These changes help Uniswap better prepare for long-term development steps in an increasingly stringent legal environment, enhancing trust and transparency for users and investors.
Frequently Asked Questions
What is DUNA and what is its role in Uniswap governance?
DUNA is a legal organization in Wyoming aimed at supporting the DAO in complying with legal regulations, managing finances and taxes for Uniswap.
How will the new fees be distributed to UNI holders?
Fees are collected into the DAO treasury, not directly distributed to UNI Token holders but reinvested in community development.
Will the establishment of DUNA affect the Uniswap protocol?
No, the protocol, Token, and governance system remain unchanged; only the legal organization for administrative operations is added.
Who manages the DUNA organization?
Cowrie Advisors is responsible for managing and operating the legal organization DUNA for Uniswap DAO.
What does this move mean for the cryptocurrency market?
This is an important step that helps the DAO meet legal standards, laying the groundwork for sustainable development in a tightly regulated environment.
Source: https://tintucbitcoin.com/uniswap-foundation-trien-khai-khung-duna-wyoming/
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