Key Takeaways
- Legal Structure Shift: Uniswap Foundation proposes adopting Wyoming’s DUNA framework for DAO governance.
- $16.5M in UNI Allocation: Funds will cover past tax liabilities and build a legal defense budget.
- Potential Fee Activation: Move could pave the way for turning on Uniswap protocol fees.
The Uniswap Foundation, which manages governance for the world’s largest decentralized spot crypto exchange, has unveiled plans to restructure under Wyoming’s Decentralized Unincorporated Nonprofit Association (DUNA) framework.
If approved, this move would make Uniswap’s DAO the largest decentralized organization to adopt the legal structure, offering a formal wrapper that allows it to contract with service providers, engage in transactions, and meet regulatory obligations without altering core governance mechanics.
Funding for Compliance and Defense
Under the proposal, the new entity—dubbed “DUNI”—would receive $16.5 million worth of UNI tokens. The funds will address an expected IRS bill of under $10 million for past tax liabilities and support a legal defense reserve.
The framework prohibits distributing dividends to DAO members, but it permits compensation for service providers and reimbursement for operational expenses. The proposal also includes a $75,000 allocation to Cowrie, an advisory firm co-founded by David Kerr, who helped draft the Wyoming statute.
Clearing the Path for Protocol Fees
Uniswap Foundation’s general8 counsel, Brian Nistler, said adopting the DUNA framework could enable the DAO to activate protocol fees, diverting a portion of liquidity provider revenue into the DAO treasury. This potential “fee switch” has been a long-debated topic among UNI holders and could mark a major evolution in the protocol’s revenue model.
By formalizing its legal standing, Uniswap aims to balance decentralization with operational protections and regulatory clarity—something other projects have begun exploring as they refine governance structures.
Summary
Uniswap Foundation’s DUNA proposal3 represents a significant legal and strategic shift, aimed at securing regulatory compliance, funding operational protections, and opening the door for long-anticipated protocol fees—without undermining the DAO’s decentralized governance model.
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