Uniswap Proposes DUNI Legal Structure to Enhance DAO Governance and Compliance

Uniswap Foundation has proposed a new legal structure under Wyoming’s Decentralized Unincorporated Nonprofit Association (DUNA) law, known as DUNI, to strengthen the legal framework of Uniswap Governance. This initiative aims to provide liability protection for governance participants and enhance the DAO’s ability to engage in off-chain activities such as tax compliance and contract execution, without altering the UNI token or core protocol mechanics [1]. The structure is intended to preserve the decentralized nature of Uniswap while offering a recognized legal entity for governance-related functions [2].

The DUNI proposal, outlined in the Uniswap Governance forum, introduces a formal legal interface that allows the DAO to operate more effectively in traditional legal and regulatory environments. It does not affect protocol-level parameters or liquidity incentives, ensuring that existing governance mechanics remain unchanged [3]. The structure is expected to clarify off-chain responsibilities and potentially facilitate future governance enhancements, such as the activation of the fee switch, which would redirect a portion of liquidity provider (LP) fees to the protocol treasury [4].

Under the proposed framework, the Uniswap Foundation will serve as the first Ministerial Agent, overseeing operations within the new structure. To support these efforts, the Uniswap Treasury is expected to allocate $16.5 million in UNI tokens to a DUNI-controlled wallet, pre-funding initiatives such as legal defense and tax compliance [5]. This move aligns with broader trends in DAO evolution, where legal recognition is increasingly seen as essential for long-term sustainability and operational capability.

The proposal has already had a measurable impact on the market. Following the announcement, UNI experienced a 9% intraday surge to $11.86 before retreating to below $11.16. The market response underscores the significance of the proposal, not just as a structural update, but as a milestone in the maturation of DAO governance models [6]. Analysts have noted that the DUNI initiative reflects a broader shift in how decentralized organizations seek to balance decentralization with legal and regulatory engagement [7].

Wyoming’s DUNA framework has been cited as a model for DAOs seeking to establish legal identities without compromising decentralization. By leveraging this structure, Uniswap aims to set a precedent for other DAOs navigating similar challenges [8]. The proposal could influence future DAO governance models by providing a legal framework that supports both regulatory compliance and decentralized control [9].

The Uniswap Foundation has emphasized that the DUNI structure is a critical step toward the long-term viability of the Uniswap DAO. As the proposal moves through the governance process, its reception will be closely watched by the crypto community, particularly in how it may impact the broader DeFi ecosystem [10].

Source:

[1] https://gov.uniswap.org/t/rfc-establish-uniswap-governance-as-duni-a-wyoming-duna/25770

[2] https://www.xt.com/en/blog/post/uniswap-foundation-proposes-2025-legal-framework-under-wyomings-duna-law

[4] https://www.coinspeaker.com/uniswap-foundation-proposes-duni-legal-entity-in-wyoming-to-enhance-dao-governance/

[5] https://unchainedcrypto.com/uniswap-proposes-wyoming-duna-dao-to-lay-groundwork-for-fee-switch/

[6] https://www.fxstreet.com/cryptocurrencies/news/uni-rises-as-uniswap-foundations-duni-proposal-hints-at-fee-switch-unlock-202508112345

[7] https://www.theblockbeats.info/en/news/59285

[8] https://coincentral.com/uniswap-proposes-duni-legal-entity-in-wyoming-to-enhance-dao-governance/

[10] https://www.dlnews.com/articles/defi/uniswap-inches-to-fee-switch-as-foundation-pushes-duna/