The Uniswap Foundation Introduces the "DUNA DAO" Structure to Pave the Way for Fee Switching

On August 12th, as per The Block, the Uniswap Foundation recently put forward a proposal to establish a new legal entity named "DUNI" for its governance organization within the decentralized non-corporation non-profit association (DUNA) legal framework in Wyoming. The foundation is in charge of supervising the world's largest decentralized cryptocurrency spot exchange. This new legal entity will offer a legal cover while maintaining the existing governance structure of the Uniswap DAO, enabling it to engage service providers, sign contracts, and fulfill regulatory and tax compliance obligations. If the proposal gets approved, the Uniswap DAO will become the largest decentralized organization to adopt this legal framework. According to the proposal terms, the entity will receive $16.5 million worth of UNI tokens to cover past tax obligations and set up a legal defense budget. Since Uniswap has never chosen to be taxed as a corporation, the foundation anticipates paying less than $10 million to the Internal Revenue Service (IRS) to settle historical tax debts and fines. The Uniswap Foundation stated in the announcement that adopting the DUNA framework would create a path for protocol fees, at which point a portion of the liquidity provider fees would be directed to the DAO treasury.