The Uniswap Foundation has formally proposed creating a legal entity named DUNI under Wyoming's Decentralized Unincorporated Nonprofit Association (DUNA) framework. This strategic move aims to establish a compliant legal identity for Uniswap Governance while preserving the protocol's decentralized structure and on-chain operations.
According to the proposal, DUNI will enable smoother interactions with off-chain service providers including banks, legal firms, and regulators by providing recognized legal standing. Crucially, it does not alter existing smart contracts or governance procedures, but creates risk-shielding capabilities and facilitates Know-Your-Business (KYB) compliance.
The initiative includes establishing a dedicated legal defense fund to protect against litigation. Historical precedent shows DAOs like Nouns DAO achieved 20-30% reduction in operational friction after adopting DUNA, noting in a May 2025 statement: "It provided a legal framework to become a U.S.-based DAO without compromising decentralization."
Wyoming's DUNA framework specifically supports decentralized governance models, allowing entities to own property, enter contracts, and engage regulators while maintaining distributed control. The Uniswap Foundation emphasized this addresses critical regulatory ambiguity as DeFi faces increasing scrutiny globally.